What is Programmatic Media Buying?

Programmatic Media Buying

The term programmatic media (also known as programmatic marketing or programmatic advertising) encompasses an array of technologies that automate the buying, placement, and optimization of media inventory. In this process that replaces traditional human-based methods, supply and demand partners utilize automated systems and business rules to place advertisements in electronically targeted media inventory. Programmatic media is a fast-growing phenomenon in the global media and advertising industry.

The future of marketing…available now

Many media agencies leverage technology partners, with access to ad exchanges, while others have chosen to develop their own trading desks that allow for direct media programmatic transactions. Programmatic media buying allows the use of audience insights and technology to tailor messages to a particular individual, at a particular moment, in a specific context, ultimately enabling an additional layer of value. Programmatic media is transacted across a wide and diverse array of mediums including digital media (desktop, mobile and social media ) Television (TV), Print,  Radio and Out-of-Home (OOH). Technological innovation, an abundance of data, and liquidity in the media has given way to a more democratized process, which has changed the mechanics of transacting media in a manner never before possible. The industry is going through something akin to the automation of the financial markets in the 1980s, allowing much more precision and personalization.

Ad exchange

Ad exchanges allow media specialists to transact in media inventory via an auction-based model. Buyers and sellers allow algorithms to pinpoint media inventory based on its value with reference to key performance indicators (KPIs).

Real-time bidding (RTB)

Real-time bidding (RTB) is an automated method of transacting in media inventory, which is bought and sold via technology platforms such as ad exchanges or supply-side platforms (SSP), in real time. In this process, sellers (publishers) make their inventory available for buyers (advertisers) who bid on the inventory in the marketplace. Parameters set by the advertisers include bid price, network reach, and the type of individual that they are targeting. One of the benefits of this process is the unrivaled opportunity for optimization.

Private marketplace (PMP)

The private marketplace (PMP), also known as a private exchange, is defined as buyers and sellers interacting in a closed environment in order to gain an additional layer of control over the transaction. Media inventory available via a private marketplace (PMP) is limited to premium environments.

Demand-side platform (DSP)

Demand-side platforms (DSPs) work as a central hub that connects various data sources into one key platform. DSPs provide an additional layer of control over media inventory via a centralized overview of multiple data sources and, in turn,  create efficiencies in terms of management, reporting and optimization.

source: wikipedia.com

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