Quick: Define “programmatic!” Given it was once dubbed marketing word of the year by the Association of National Advertisers and has been growing in importance ever since, this should be easy, shouldn’t it? Unfortunately, while advertisers have leapt on the programmatic train to great success, publishers have been much slower to do so.
Considering how important programmatic has become for advertisers, publishers should understand it too. It offers more demand and access to a wider variety of advertisers than direct sources which leads to more revenue after all. The industry doesn’t just need a common way to explain programmatic. Advertisers, publishers, and mobile developers also need to understand that the use of programmatic via open RTB is growing and one of the best opportunities in years.
What does the intersection of “programmatic” and mobile look like, anyway?
Programmatic is an automated process to make placement decisions and execute on those decisions in real-time. Put simply, it’s a way for advertisers to buy ads more quickly and efficiently.
That said, one of the biggest misconceptions about programmatic is the notion that it is largely limited to open RTB (real-time bidding) that functions sort of like a public stock exchange. The reality is that spending on private marketplaces – or platforms that essentially offer RTB for invited members – is growing.
Think of open RTB as a huge party, and private marketplaces as the VIP area, where all the cool guests are roped off. The benefit to a monetizing publisher is they know what type of ads will appear within the app. For the DSP, they get access to inventory they couldn’t get elsewhere.
What’s in it for publishers?
A programmatic marketplace is built to deliver the most relevant ad to users while generating the highest possible CPM to publishers. Relevant advertising has become the key differentiator in the age of data. Ads that are applicable and relevant to a user are less likely to annoy and drive users away, and advertisers are constantly encouraged to understand the context in which their ads are viewed.
In addition to increased relevancy, programmatic advertising provides real-time data and increased transparency. It’s much easier to track sites campaigns are being placed in, the amount of budget that is being used, and the kind of consumers who are seeing the ads. Having these insights will keep advertisers happy and informed and allow publishers to maximize their ad revenue.
How do publishers take advantage of programmatic inventory?
Publishers who integrate the AdColony SDK automatically receive demand from our programmatic exchange. There’s no additional work to do! An app’s ad zones will receive ads from one of two places: either our direct sold campaigns, which could be premium brand or UA ads from other apps, or from one of our programmatic demand partners (DSPs), including The Trade Desk, Google DV360, Verizon Media, and beyond. Our teams have spent a lot of time making sure AdColony has the biggest “pipe” of high quality demand out there, all to give our publishers better results. Making inventory available within a programmatic network can result in higher revenue, especially when your users are the perfect candidates for an advertiser’s’ campaign objective.
With the wealth of information programmatic buyers are equipped with, they’re often able to offer more competitive bids than traditional, flat campaign pricing (though that too can have its advantages in a traditional non-programmatic campaign). Opening up an app to programmatic inventory also opens it up to more competition, more competition leads to higher bid density, and higher bid density drives up overall CPM earnings for publishers.
The best part about all that programmatic demand within the AdColony SDK is that there’s no additional work required by publishers to access it. We’ve done the heavy lifting for you.
Advertisers reach the audience they want at a fair price, users see ads they’re most interested in, and publishers get the revenues they’re looking for, while a machine does [almost] all the work!
Ready to take advantage of programmatic advertising?
Download AdColony’s SDK today!
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