Programmatic - Aqugen Technologies
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Programmatic

benefits of real tine bidding

Want To Know The Benefits of Real-Time Bidding?

Real-time bidding (RTB) is used to automate something that could be done manually. RTB platform uses the marketing specifications which you can use to input and it helps you to find the right places to display the ads. Not only this, but it also makes use of the financial data that the advertisers supply and then the bids on the ad placement are placed without any intervention. And since 2013, each year more business owners are using this approach.

Want To Know: What is real-time bidding?

Benefits of RTB

  1. Ad reaches the right audience

Using RTB ensures that the advertisers can more efficiently determine where their ads need to be placed to reach the greatest number of targeted consumers. Also, instead of spending a lot of time in evaluating the potential of a website for the right location, advertiser just needs to specify the type of setting for the ads. RTB software conducts constant evaluations to find a new and appropriate place(s) to run the ads.

 

  1. Controls Costs and Reduces Waste

RTB comes with an option to target each advert impression. So, the advertiser can easily avoid the bulk-buying of ad space that is mostly wasted on irrelevant web users. It also makes it much easier to accurately estimate the true value of each ad impression. Also, real-time bidding software monitors and enforces a frequency cap across all ad inventories. This means limiting individual users to a specific number of ad views. Consequently, it saves a lot of marketing cost and wasteful consumption of the inventory.

 

 

  1. Improving Online Marketing Strategy

RTB provides feedback regularly which will help you understand what appeals to your target audience and what needs to be revised or edited. Since an advertiser gets such detailed information about how many ad impressions are generated. So, the relationship between ad impressions and sales figures can be easily tracked. So, this allows the advertiser to move faster and make changes if need be so that the ad directly appeals to the right target audience.

 

  1. Improves Performance

Since the campaign is controlled by software and its performance can be observed in real-time, so the advertiser could make decisions much faster. Optimisation of the budget can be done regularly.  It can be moved between markets, to attain the best reach and ROI.

 

  1. Better targeting

Real-time bidding shows the results instantly. It indicates the changes required and showcases the tricks to target the right audience. However, creative can be designed specifically for a single audience segment as well. Advertisers can use their data as a template and then use it to expand the size of the audience they are targeting.

Learn More: What is programmatic advertising?

 

  1. Protecting the brand

RTB gives an option that instead of purchasing across a whole ad network; advertisers can simply stipulate quality levels that match their brand. Also, Ad verification services can help in maintaining blacklists. This also prevents ads from being shown in dubious positions.

 

  1. Easy integration with other digital marketing channels and platforms

RTB allows the display to be linked with other digital media campaigns, such as video, social, PPC and SEO. So, this makes the integration of different digital marketing channels much easier. Also, RTB campaigns allow the ability to reach any screen such as desktops, tablets, mobiles, etc. This concept is quite adaptable to the current scenario wherein we are using multiple screens most of the time.

The list can go on even after listing these benefits associated with real-time bidding. However, each advertiser has their own experience and that can only happen when they start to explore. Whether you are with an advertiser in some international organization or you’re operating a small business, RTB can help you build an online reputation. It will help you reach the right consumers and help you structure a campaign so that it’s more competitive in today’s ever-changing world.

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Programmatic-Advertising

What is Programmatic Advertising?

It is next to impossible to capture the attention of consumers in today’s digital ecosystem because of the number of distractions. There are more than 1.9 billion of websites and millions of applications and digital properties across different channels. They are being viewed and in use on an everyday basis. Therefore, it makes sure that your advertisement not only reaches the audience but is also retained by them. Also, an advertiser has to decide among different platforms to advertise. Having to select the best places where you can put your advertisements in the digital world is an increasingly unsettling task.

Programmatic advertising can be a rescuer in such a situation. It is an automated buying and selling system for online advertising. This automation makes the transactions more efficient and more effective. It not only streamlines the process but also consolidating your digital advertising efforts for one technological platform.

Programmatic platforms have been growing their inventory and database for many different formats and channels. They can be accessed easily via mobile, pc/laptop, tablet and other audio and digital platforms.

Targeting tactics play an important role here as they are used to divide the audience based on historical data so that advertisers can target their relevant audience. Also, they ensure that these ads are delivered to the right people at the right time.

How does Programmatic Advertising work?

Most importantly, the audience is classified into different categories. These categories can be based on demographics, geography, interests or behavioural patterns, etc. Real-time data is used to identify the target audience.

Now, the digital ad inventory is bought through an auction-based on everything available across multiple devices.

Thereafter, advertisements are personalised based on consumer’s interests and behaviours.

Want To Know More About Native Ads Network

Why use Programmatic Advertising?

There are numerous benefits. Some of them are:

    1.   Programmatic Advertising helps buyers and sellers to make data-driven decisions and removes the aspect of the guesswork from the ad buying process.
    2.   It is budget-friendly.
    3.   Programmatic technology improves efficiency as it uses machine learning to optimize campaign success. It can easily avoid ineffective inventory.
    4.   It helps in targeting in real-time. It allows you to target across as many different tactics and devices.
    5.   Programmatic advertisement streamlines campaign management. It consolidates all campaigns in one system. It also helps to visualize success in one place.
    6.   Easy access to the ad inventories. The advertisers are able to access the optimal inventory across a variety of exchanges all at once.

Programmatic advertising allows marketers to spread the message very effectively across desired channels while focusing on the targeted audience. It uses collected data to find new opportunities. Also, programmatic creates an environment that enables marketers to reach their most meaningful audiences more efficiently than ever before using digital media to deliver the best results due to automation and machine learning. Programmatic advertising is constantly evolving. A large number of options available make it the most favoured one by the advertisers.

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What is Real-Time Bidding?

Real-time bidding is a relatively newer concept in the field of trade inventory which is based on convenience and innovative technological approach. It has become an important part of digital advertising strategies from both the supply and demand side. It can contribute a lot when you’re trying to get the best from advertising, from the advertisers and publishers.

It is a real-time auction, wherein ad requests from the publisher are directly sent to an open exchange place to get bids from buyers. However, the number of ad requests can vary from one publisher to another. The exchange of ad impressions is facilitated by ad exchanges. The ad inventory is traded between advertisers and publishers. The major benefit is that real-time bidding is a win-win scenario for both the publishers and the advertisers. The advertisers benefit by targeting the correct type of users and the publishers benefit as they get the better fill rate which ultimately, maximizes ad revenue.

The process of real-time bidding is as follows:

  1.   User visits a page and the browser sends a request to the server to load an advertisement.
  2.   The Ad server puts the ad on the ad exchange.
  3.   The ad exchange opens up the platform for all the bidders.
  4.   Advertisers evaluate the impression according to their targeting requirements and then each of them places their bids.
  5.   Finally, the ad exchange receives the bids and serves the ad to the highest user.
  6. The whole process occurs in real-time and takes just a few seconds to complete.

 

The RTB ecosystem revolves around:

    •   Publishers

A publisher has a specific kind of target audience to which the advertisers want to display their ads. Publishers connect to an open exchange with the help of a platform. They are usually the supply side of this transaction.

 

    •   Advertiser

They are usually on the demand side. And it also comprises of advertisers and ad networks. The advertisers use the Demand Side Platforms to target and buy the ad impressions which were made available through open exchanges.

    • Ad Exchange

It is the medium that facilitates a transaction between both sides: advertisers and publishers in real-time. Usually, the auctions are completed in a few milliseconds even before the page loads.

Read More: Instagram Advertising Cost: Boost ROI & Lower Ad Cost 

Advantages of RTB

 

    •   Streamlined process

Real-time bidding has changed the way ad impressions were sorted and placed. It is an automated process now for the publishers. The platforms check the relevance of the advertisement and match it with the defined parameters within milliseconds thereby structuring the process instantly.

    •   Better ad revenue and flexibility

Publishers can set minimum prices for impressions based on real-time market demands. The ad impressions in RTB are thoroughly matched with the required criteria. And this makes the entire advertising process much more efficient, flexible and faster.

    •   Optimization

You can track the earnings in real-time and optimize them accordingly to increase your ad revenue. The best part is that RTB puts you in control.

 

Caution while using RTB 

Even the most advanced automated solution isn’t perfect, it has some drawbacks. The problem with RTB is that it is prone to frauds. When an advertiser wins a bid and the ad impression is served, the transaction is effectively ended. In this case, it is really hard to dispute traffic quality.

Also, advertisers pay by CPM model for the number of impressions an ad receives and not based on the actions that users take. This makes it even more difficult to catch the frauds.

Ad placement manipulations, malware, and adware, bots traffic, hijacking ads, and clicks are most commonly used fraudulent tactics in RTB.  However, to combat it, it is advisable to use third-party services to track the quality of traffic and ensure the transparency of ad delivery.

Since RTB involves both publishers and advertisers, therefore, both of them can be affected in different ways. This is why there are different strategies for each of them. Publishers are wary of inappropriate or low-quality ads that harm their credibility, so the choose options wherein they block unsuitable ads. Conversely, advertisers keep a check on the quality of traffic to avoid getting fake impressions. Also, they try that their advertisements are not served to the wrong audience.

RTB and the programmatic media buying technology are improving every year. They help in targeting a larger audience and in increasing the ROI. In fact, it is the fastest-growing segment of digital advertising. The exponential growth of RTB conforms to its potential and the opportunities it gives to both the advertisers and publishers. However, it must be used with caution and there would be no turning back.

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Dynamic Creatives

Reasons Why Advertisers Need to use Programmatic Creatives

With advancement in AI and digital marketing, the face of advertising has changed globally. The predictions of replacing humans with robots sure have put various job holders at risk. The online advertising is changed a lot with programmatic advertising. The programmatic ad buying refers to the use of machines instead of humans in purchasing digital advertising. Still, ad blocking challenges the promotion of these ads. The hype around programmatic advertising was that it made buying ads cheaper eliminating the human elements. Although programmatic advertising platforms have gained a lot of interest from consumers, the backlash against these ads increases challenges.

Role of Creativity in Programmatic Advertising

The rise of ad blocking might make advertising appear in a negative role, but for consumers, it still works if the ad is good. So creation actually plays a great role in programmatic ad sales. The creatives add more personalized experience in programmatic campaigns for the audience and change the overall experience of the consumer. It basically means that ad creating can be tailor-made according to the location, time of the day and what consumers are doing. This is in other terms called the dynamic creative optimization (DCO). During the advertising process, DCO supports what best suits the user. The ads are created for individual users still reaching a larger audience.

Read More : What’s New For Responsive Ads

The approach of marketers and advertisers reaching the mass market is way different then DCO. The ads are generated according to the various data collected during campaigns. This not only creates long term loyal customers but also increase returns for the various digital or non-digital campaigns organised. With new creation, the old rules including standout, relevant and engaging content and context are still important. The director of media and advertising of ISBA, Bob Wootton said that:

“The biggest challenge is the need to marry dynamic creatives with the way digital adverts behave. Too many agencies cluster around the 30-second TV content and are reluctant to change.”

Programmatic media buying has used the single click approach for engaging and optimizing. But these clicks by individuals don’t mean the campaign will get any response. But with creative tools, if used properly, the right audience can be identified, and more insights can be analysed like location, mood, intent etc.

Problems related to engaging creative with programmatic advertising

  • Issues related to resources: Tom Lancaster, Topman’s senior digital creative manager, claims the reason that some brands find difficulty in engaging creativity to programmatic advertising is the increase in resources needed. The brands do get a positive response, but it gets complicated with putting too much energy and resources and personalizing sites to match the ad for visitors. Purpose and relevance still play an important role in advertising.
  • Usage of data: The success of programmatic advertising with creatives primarily depends on how effectively a brand uses the data. The AOP research showed that only 4 % of campaigns use first-party data and 68 % use no data at all. The creation of data is not equal and depends on how this data is used. The tech and data can take advertising to a whole new level. An example of the usage of clever data is the use of weather data and information by TUI. The idea is when people search for beach holidays show ads showing sunny destinations.

O2 also uses personalised ads according to various situations. The head of digital excellence at O2, Nick Adams, claims a 128% increase in click-through rates ads on devices by using these ads.

Deprioritizing creative content

The blame falls on the agencies or not providing creative content, but agencies only provide content according to clients demand. The clients only get what agencies get to pay for. Programmatic media buying tools are being used to create making new expressions. The various functions performed by these tools include the sequencing of messages to build a story, surfacing rich content to the consumers and creating a new sense of intimacy by combining audience data, contextual data and environmental signals. The creative professionals themselves need proper incentive to produce and deliver the relevant content. The brand should also be clear about what they ask for.

Also, the complex nature of creating programmatic media content leads the company to believe that only pre-tested sites offer viability for the content. In addition, there is the minimal type of audience for sites which leads to exploitation of true programmatic approach.

Role of display ads changed by programmatic advertising

Programmatic display ads are redefined with programmatic taking larger portion of digital marketing budgets. By 2019, the flow of display ad via programmatic will be 4 out of 5 US digital display ad dollars. The experience is unique rather than obstructive, and marketers need their displays to be relevant for the specific audience. This not only results in centralizing the customer needs but also enhancing user experience.

It should be noted that programmatic real-time buying is different from real-time bidding (RTB) as RTB includes selling an ad space via auction while programmatic is automatic media buying and placing of ads in display space. Purchase of advertising space modes is different in both cases.

The use of creatives in programmatic advertising has both positive and negative roles. On one hand it sure proves to be effective in reaching out to the more relevant audience by taking into account intricate details like weather, location and mood. Whereas, the ad blocking and lack of resources and data lead to obstruction in the advertising programmatically. The challenges in merging both creative and programmatic advertising put a lot of pressure on both brands as well as creative professionals. The programmatic advertising provides with customized experiences and the role of creatives in enhancing these ads by targeting a relevant audience. Programmatic media buying tools are being used to create making new expressions. The various functions performed by these tools include the sequencing of messages to build a story, surfacing rich content to the consumers and creating a new sense of intimacy by combining audience data, contextual data and environmental signals. So creative have a lot of importance in programmatic advertising if used effectively.

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Programmatic Media Buying

Look Back at 2018 Predictions for Programmatic Media Buying

In the earlier days, before the introduction of programmatic buying, management of digital advertisements was done by humans. It involved lengthy processes such as RFPs, negotiations, manual insertion orders etc. This marked the media buying process with several inefficiencies. But with the advent of Programmatic Media buying, the entire process has undergone a pragmatic shift. This technology has ensured weeding out of various inefficiencies from the purchase of advertising space.

In simple terms, Programmatic Media Buying process uses technology for automation and optimisation of the ad-buying process through real-time bidding. One of the most popular applications of programmatic media buying is the usage of advertisement networks such as AdWords. It uses advanced algorithms to deliver highly targeted advertisements at target viewers.


RTB

Is Programmatic media buying the future of digital advertising

Before the advent of Programmatic media buying, the entire process of digital advertisements was conducted by humans. This made the process expensive and unreliable. By removing human involvement, programmatic advertising makes the whole process cheap, quick and efficient. Moreover, the system works round the clock and ensures higher revenue inflows.

Programmatic media buying platforms are fast becoming very popular. Most of the digital ad agencies now purchase the bulk of the online media through programmatic channels. Many companies have deployed in-house teams to handle the programmatic advertising platform. Presently, mainly online ads are traded through programmatic buying, but in a few years down the line, other digital ads like Television and Radio will also be traded this way.

Having to Look Back at 2018 predictions for programmatic media buying

At the onset of 2018, Digital advertising experts had made certain predictions regarding programmatic media buying. Let’s have a look back at those predictions and if they came true.

1.Around 86% of marketers are trying to handle the programmatic media buying process with an in-house team.

According to a list released by A.list in June 2018, certain facts came to the fore: –

  • 18% of respondents have completed in-housing of programmatic media buying.
  • 47% of respondents have accomplished it only partially.
  • 13% of respondents started the process but abandoned it mid-way.
  • 22% of respondents do not plan to in-house the process.

Though, there has been a certain increase in the number of companies looking to manage the process with the help of an in-house team but complete in-housing of the process will not happen anytime soon — the main reason is that companies have understood that they cannot get an in-house team that matches the expertise of professional agencies.

2. Publishers stand to make billions of dollars with programmatic advertising platforms adopting and enforcing ads.txt uniformly

The exact dollar figure is yet to be published as the year has just concluded but it is certain that Ads.txt has been uniformly adopted by publishers and advertisers. The main reason behind the rising popularity of ads.txt being the elimination of counterfeit inventory. This trend is expected to continue in 2019, with more publishers adopting Ads.txt in 2019. As per an estimate, almost 51% of global websites have adopted ads.txt.

Read More : Want To Make Money With Affiliate Marketing.

3. Programmatic advertisers are accelerating programmatic ads with the help of its benefits such as better targeting, wide audience reach, and real-time optimisation

As per a report published by eMarketer, by 2020 more than 82% of display ads in the US will be acquired with the assistance of programmatic advertising platforms. Even the naysayers, who raise questions over the transparency and lack of effective measuring tools, are drawn towards programmatic advertising because it helps target the customers directly. The process of eliminating ad fraud is a work in process, so it will not make any sense for advertisers to pass on this opportunity to reach the target audiences in real-time.

4. Video advertisement platforms will attract second highest ad-spending in the year 2018 and 2019

Video advertisements have emerged as the most effective advertising medium in the last decade. A report released by Marketing Land in October 2018 reiterated the importance of video advertising across all major social media platforms. For instance, Video advertising formed 55% of revenue share from advertising. All brands like to use video advertising as it resonates with the customers and offers higher returns on the advertisement. In the coming years as well, Video advertising will continue to reign supreme across all social media platforms.

5. Programmatic advertisement expenses on mobile would outstrip desktop spending by more than 300%

This prediction also came true, as revealed by a report by eMarketer. The report states that by 2020, total spending on programmatic advertising on mobile would account for 66% of the entire market. This growth could be attributed to the rising popularity of Google and Facebook along with their penetrative programmatic inventory. But the growth of CTT and OTV will act as blocks to complete domination of mobile programmatic advertising.

6. The total spending on display ads is going to breach the mark of US $ 40 billion in 2018

This prediction also came good as revealed by a report from eMarketer. As per a report published in November 2018, the total spending on display ads was recorded at the US $ 48 billion. It is expected that in the upcoming year, the figure is going to increase further.

7. Google would obtain almost 80% of the search market

Google has comfortably passed this figure and as of 2018, stands tall with 90.8% of the search market, as revealed by a report from Business Insider. The dominance of Google is going to continue in the upcoming years as well.

8. Instagram stories will blow away snap chat by becoming the preferred option for Generation Z

As per a report by SNBC in June 2018, active users on Instagram stand at more than 400 million as compared to 191 million on snap chat. This has been possible because Instagram has been introducing regular updates as per user requirements while snap chat continued to ignore the user requirements.

With programmatic display advertising slated to become the most favoured online advertisement option for brands globally, it has become imperative for advertising agencies to revamp their offerings and get them in line with customer expectations.

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