How It Was, How It Is, and How It Should Be
There is a prevailing belief that reaching a broad audience and building trust, along with a sufficiently established brand perception, requires multimillion-dollar investments in TV, print, or radio advertising. Traditional publishers reinforce this belief among marketers, despite lacking detailed data on the effectiveness of their solutions. This is the rule of the saturated: the larger the budget, the less focus on results analysis.
We offer you a different approach – one based on data analytics, specialist expertise, and programmatic advertising technology equipped with advanced machine-learning algorithms.
Verseo proposes a programmatic advertising model for purchasing ad space, enabling you to build extensive reach within a relevant audience. Additionally, you can plan capping (the frequency of ad displays for a specific user) and position everything at precise stages of the customer journey. This approach results in significantly lower expenses for building broad reach within the audience with the highest purchase potential for your business. In other words, the better the audience fit and the more accurately the optimal ad frequency is measured, the higher the advertising efficiency.
Moreover, we can determine the threshold frequency for reaching specific users and entire target groups, beyond which further ad displays become unprofitable. Skillful campaign design and subsequent optimization ensure that you achieve optimal brand exposure frequency while saving money.
Programmatic – What Is It?
Programmatic advertising is a type of online advertising that uses algorithms and programming technologies to automate the buying and selling of ad space on websites, VOD platforms, YouTube, other User Generated Content services, mobile applications, and premium spaces offered by top publishers. This process occurs in real-time, enabling companies to reach their target audience more effectively and cost-efficiently.
Programmatic advertising leverages user demographic, geolocation, and behavioral data to deliver personalized ads that better match user needs and preferences. This is achieved through the use of Demand-Side Platforms (DSP), which allow for automated purchasing and campaign management, and Supply-Side Platforms (SSP), which facilitate the sale of ad space on websites.
Programmatic Experts
Programmatic Advertising Formats and Applications
Programmatic advertising can be displayed in various formats, including display banners, video and audio ads, and other non-standard, engaging advertising formats. By utilizing algorithms and artificial intelligence, programmatic advertising enables more efficient and effective use of advertising budgets, improves campaign performance, and builds reach and awareness—capabilities that were long exclusive to radio, print, and television.
Furthermore, programmatic advertising now extends beyond digital to include media like Out-of-Home (OOH), streaming platforms, internet radio, and TV. It is no longer just another communication channel but an entire ecosystem that reflects a broader, holistic marketing standard for media buying.
This is why media purchases in the programmatic model are often handled by intermediaries such as Public Relations agencies. However, you don’t need to rely on such intermediaries to build broad brand perception. You can work directly with Verseo to purchase ad space as part of a thoroughly planned campaign with our experienced specialist. Programmatic campaigns managed with Verseo are also relatively more affordable compared to involving additional intermediaries for media purchases and digital campaign planning aimed at increasing reach and brand awareness.
Where Can You Display Programmatic Ads?
Six Benefits of Programmatic Advertising
Precise Targeting: The ability to reach the right target audience based on demographic, geolocation, and behavioral data.
Personalization of the Advertising Message: Delivering personalized ads that better match user needs and preferences. The ability to create a “story” where consecutive messages, within the set capping, form a coherent whole.
Efficiency: Better utilization of the advertising budget and greater control over costs.
Premium Spaces: Enjoy displaying ads on high-reputation and well-known Video on Demand portals and platforms. The ability to use ad space from the largest publishers and apply visible and effective formats.
Coverage Across All Device Types: Smartphones, computers, tablets, TVs, and even gaming consoles.
Real-Time Bidding: Fast and automated purchasing of ad space based on real-time auctions.
Easy Monitoring and Optimization: The ability to monitor campaign results in real-time and quickly optimize, which leads to better outcomes.
Reach and Awareness: Building broad reach at a relatively low cost, or creating high-frequency awareness campaigns with ads shown to each user.
Methods for Purchasing Ad Space in DSP
In the Demand-Side Platform (DSP) model, there are three main methods for purchasing ad space:
Open Auction – Available to all, also known as RTB (Real-Time Bidding). The advertiser who bids the highest for exposure in real-time can display their ad.
Private Auction – Similar to the above, but available only to a selected group of advertisers, with the option to choose a “first or second price auction” strategy.
Preferred Deal – Fixed rates between the advertiser and publisher, ensuring both parties know exactly how the ad delivery will be managed.
What Are the Differences Between Programmatic Campaigns and Real-Time Bidding (RTB)?
It is important to note that programmatic campaigns and RTB (real-time bidding) are two different concepts related to the purchase of advertising space.
RTB is a type of purchase within programmatic advertising, where ads are bought through real-time auctions. Advertisers can specify criteria such as target groups and maximum prices, and the programmatic platform will select the best available ad spaces in real-time to display the ad.
A programmatic campaign, on the other hand, is a broader scope of marketing activities based on data, which also includes programmatic direct (direct purchases without auctions) and private marketplaces (closed auctions). Programmatic campaigns allow for the use of various types of data, such as behavioral and demographic data, to precisely target and deliver personalized advertising messages.
In summary, RTB is an auction-based purchase model used within programmatic campaigns, whereas programmatic campaigns represent a broader approach to purchasing ad spaces.
How Does Automated Advertising Work?
Programmatic advertising is the process of buying and selling ad space using technology and algorithms. This approach allows for more precise, efficient, and automated ad delivery compared to traditional advertising campaigns.
The automated advertising process consists of several steps:
- In the first step, advertisers define the campaign goals, target groups, and advertising budget.
- Based on this information, specialized programmatic platforms (such as DSP – Demand-Side Platform) automatically select the best ad spaces for the campaign, using available data about users, such as their age, gender, geographical location, and preferences.
- The next step involves setting the price and choosing the ad format, such as banners, videos, or text ads.
- Programmatic platforms automatically display ads in the selected locations, monitor their effectiveness, and optimize the campaign in real-time, such as by changing the ad location or adjusting the content for target groups.
As a result, advertisers achieve greater efficiency and precision in delivering their advertising messages to the right target groups, while publishers can sell their ad space more effectively.
What is a Supply-Side Platform (SSP)?
A Supply-Side Platform (SSP) is a programmatic platform that enables publishers to sell their ad space through real-time auctions (RTB) or via programmatic direct. SSP allows publishers to manage their advertising inventory, optimize prices, and automatically select the best offers based on available data.
The features of an SSP include automatic auctions and negotiations, inventory management, campaign performance monitoring, and reporting. SSP helps publishers increase their revenue from ad space by improving inventory utilization and leveraging behavioral and contextual data to select the best offers.
SSPs are typically integrated with Demand-Side Platforms (DSPs), which are used by advertisers to purchase ad space, allowing for easy matching of publisher offers with advertiser demand. Through the integration of SSP and DSP, the entire process of buying and selling ads is automated, enabling effective use of data and achieving better results.
What is a Demand-Side Platform (DSP)?
A Demand-Side Platform (DSP) is a programmatic platform that allows advertisers to purchase ad space automatically, through real-time auctions or via programmatic direct. DSP helps advertisers select the best ad placements for their campaigns based on behavioral and contextual data about users, such as age, gender, geographic location, preferences, and browsing history.
The features of a DSP include automatic auctions and negotiations, budget management, campaign monitoring and optimization, data analysis, and reporting. DSP enables advertisers to effectively reach their target audiences by automating the processes of buying and selling ads, leading to better results with less effort.
DSPs are typically integrated with Supply-Side Platforms (SSPs), which enable publishers to sell their ad space. The integration of DSP and SSP allows for the automation of the entire ad buying and selling process, enabling easy matching of publisher offers with advertiser demand and achieving better results.
Programmatic Advertising with Verseo – Why It’s Worth It?
Experienced Team of Specialists – You will benefit from the expertise of a specialist experienced in running programmatic campaigns. Additionally, at Verseo, you will find a team of web analysts and an optimization department – both responsible for double-checking campaigns and ready to tackle additional analytical challenges using data warehouses and the latest technologies.
Top Partnership with Google – We maintain continuous contact with Google account managers, constantly improving our skills, testing recommendations, and receiving the latest updates and information about changes in campaign methodologies in the Google environment.
Dozens of Programmatic Campaigns Run – The more cheesecakes you bake, the more likely it is that your next one will be a success. Perfect consistency, the sweetness of the flavor, a hint of vanilla, and the right baking temperature. Just like with a perfect cheesecake, where the outcome is the result of individual ingredients and a good sense of timing, in programmatic advertising, smooth navigation through the system, knowledge of various practices, and observation of past campaign results make your future campaign the culmination of our experience in effectively reaching users. Take advantage of this!
Unique Campaign Architecture and Investment Thresholds – In the case of paid channels, we always work with a defined campaign profitability model. For programmatic ads, while it’s difficult to measure direct sales results, we can aim to determine the optimal frequency of ad display per user. Beyond this point, the impact on user behavior and the coverage of the relevant audience group becomes ineffective from the perspective of the users.
Programmatic Direct
Unlike traditional direct sales models, where the process is manual, Programmatic Direct automates the sales process.
In Programmatic Direct, advertisers purchase specific advertising spaces, usually with defined parameters such as ad format, display level, and campaign duration. Publishers, on the other hand, can offer their inventory directly to advertisers, allowing them to control who and what ads are shown on their sites.
With Programmatic Direct, advertisers gain access to specific advertising spaces directly and automatically, allowing for more precise and efficient targeting of their audience, while publishers can more effectively manage their advertising inventory.
Header Bidding Step by Step
Header bidding is a programmatic technology that enables online publishers to sell ads on their websites by simultaneously offering advertising space to multiple DSP (Demand-Side Platform) platforms or ad networks, increasing competition among them and ensuring higher prices.
Here are the steps involved in the header bidding process:
- Code Implementation – Publishers need to implement the header bidding code on their websites to allow simultaneous access to the ad space for multiple DSP platforms and ad networks.
- Request for Bids – After the page is loaded, the header bidding code sends a request to all DSP platforms and ad networks to inquire whether they would like to place a bid on the specific ad space.
- Bid Competition – Each DSP platform or ad network has a specific amount of time to submit a bid for displaying the ad. During this time, the system analyzes and compares bids from various sources.
- Selection of the Highest Bid – The system selects the highest bid and displays the corresponding ad. This process is automated and happens in real-time, meaning the bidding decision takes only a few milliseconds.
By using header bidding, publishers can gain better control over their ad space and increase their revenue, while advertisers can access better purchasing opportunities and better control their ad spend. Verseo’s expertise lies in finding the balance between these conflicting interests while maintaining the effectiveness of the campaign relative to the assigned budget.
Automation and Optimization of Marketing Processes
The automation and optimization of marketing processes offer numerous benefits:
- Saving Time and Money – Automating and optimizing marketing processes increases efficiency and reduces costs. This allows marketing teams to focus on creating better advertising assets and more strategic tasks, enhancing the overall effectiveness of their activities.
- Better Control and Campaign Effectiveness – Automation allows for better control and management of data, enabling better evaluation of marketing actions. Optimization, in turn, allows for continuous improvement of processes, leading to more effective campaigns. As we all know, you cannot improve something if you don’t measure and analyze it.
- Personalization and Better Adaptation to Customer Needs – Through automation and optimization, companies can collect and analyze customer data, allowing for better tailoring of offerings to their needs and preferences. For example, personalized offers can be delivered, improving campaign effectiveness and enhancing the customer experience. A data-driven and segmented approach also allows better management of product and service pricing ranges and fundamental issues like free shipping or abandoned carts.
- Ability to Test Different Solutions – Automating and optimizing marketing processes makes it easy to test various campaign variants and marketing strategies, enabling quicker and more effective selection of those that bring the best results. This applies to email campaigns, product card headlines, and even the marketing narrative.
- Faster and More Effective Responses to Market Changes – Automation and optimization of marketing processes enable faster and more efficient responses to changes in the market, trends, and customer behaviors. This allows companies to avoid delays and errors and adapt to changing conditions faster than competitors. Often, responses to changes are handled by self-learning algorithms, meaning marketers won’t need to spend time tracking market trends—the system will tactically respond based on historical data and predictions.
In conclusion, the automation and optimization of marketing processes are key elements of an effective marketing strategy. They enable companies to achieve better results, improve customer relationships, and enhance their competitiveness in the market. This is a crucial part of programmatic advertising, which, while not specifically sales-driven, plays a vital role in building brand awareness and actively supporting sales at specific stages of the user journey—usually focusing on building needs or awareness.
Table of contents
You are reading now:
Programmatic Marketing
- How It Was, How It Is, and How It Should Be
- Programmatic – What Is It?
- Six Benefits of Programmatic Advertising
- Methods for Purchasing Ad Space in DSP
- What Are the Differences Between Programmatic Campaigns and Real-Time Bidding (RTB)?
- What is a Supply-Side Platform (SSP)?
- Programmatic Advertising with Verseo – Why It’s Worth It?
- Programmatic Direct
- Header Bidding Step by Step
- Automation and Optimization of Marketing Processes