We recently explored major trends digital marketers need to master in 2016. Not surprisingly, programmatic was at the top of that list. If you are in the industry, you know this advertising technology is growing rapidly in terms of ad spend and platforms used to execute it. US programmatic ad spend topped $10 billion in 2015 and is expected to double in 2016! While it’s clear programmatic spend isn’t slowing down anytime soon, the terminology around it may still be confusing. DSP, DMP, RTB, SSP, the list goes on and on. If you’re looking for some clarification around the many different elements that make up programmatic, we’ve got the answers below!
We interviewed Tosho Tanevski, Co-Founder and Head of Marketing at Bonadza to make sure you’re not left in the (programmatic) dark this year. Bonadza is a global self-serve advertising platform for programmatic solutions. We figured the best way to provide insights on the topic is by getting them from a marketer that works with it every day. For all of the digital marketers out there with questions on the programmatic landscape, you’re not alone and now, thanks to Tanevski, you’ll have the answers.
What’s the role of Demand Side Platforms (DSP) and Data Management Platforms (DMP) in the programmatic industry?
Alongside ad exchanges and Supply Side Platforms (SSP) , DSPs and DMPs are key components of the programmatic puzzle. A DSP is a software for automated ad buying. With this type of platform, advertisers can buy inventory through a process known as real-time bidding (RTB). By using a DSP for their campaigns, advertisers can access a wide range of inventory and choose from many targeting options. In addition to RTB, they can also make private deals using the same software. Depending on the DSP, feedback comes in real-time, and based on this, the campaigns can be optimized.
Data management platforms, on the other hand, are used for data storage and analysis, which marketers use to target specific audiences. With the data they have, DMPs help campaign optimization and media buying. They also help those who use it to better understand their audience. DMPs function when linked to another software, and are much like warehouses. The data they store and sort is further used by DSPs for targeting options.
How do they make the process easier?
DSPs make the process easier by allowing advertisers to buy inventory across a wide range of sites, targeted to specific users and based on data on their location or browsing behavior. Given the increasing number of DSPs in the display advertising landscape, not all of them share the exact same features. However, they have at least several in common:
- Running RTB campaigns. Using DSP software, advertisers can bid on impressions and evaluate them in real-time. This means that advertisers can be very selective when deciding what is relevant for their campaign, which improves the performance and the ROI.
- A single interface for inventory from different sources. Through a single interface, advertisers can access a huge range of inventory coming from different sources, such as ad exchanges or data platforms, and this means more targeting options. With this, they can execute campaigns on more devices, such as mobile, desktop, tablet.
- Reporting and transparency. With improved reporting capabilities, DSPs provide advertisers with insights and real-time analytics about the performance of their campaign across exchanges. With DSPs, transparency and safety go hand in hand. Advertisers know where their ads are running and control each step of the process.
Since DMPs serve as large data warehouses, they’re used by agencies, advertisers, and publishers for different purposes. Agencies use DMPs to analyze data from their client campaigns, advertisers use this technology for audience segmentation and targeting, while publishers use DMPs to better understand reader information.
How does Bonadza enhance the programmatic experience for marketers?
Our platform enables marketers to access billions of impressions from many different sources and audiences. By taking care of the technical aspects of the programmatic process, we enable marketers to run a successful display campaign in the simplest possible way.
We provide full support in the form of offering advice on choosing sites, budgeting, and other technical aspects of the campaign. As we’re actively curious about the industry trends, we’re also devoted to improving the performance and features of our platform, and by doing so, to make programmatic work for our clients.
What are two major trends you are noticing in the programmatic industry and how can marketers leverage them?
- Programmatic mobile. Having witnessed the growth of programmatic technology and its popularity among marketers, the expansion to mobile was logical and expected. It is happening at a surprisingly fast pace, and marketers expect a lot from it. Those who already used it quickly saw the benefits in the shift to mobile. With a huge number of mobile users and cross-device becoming a reality, marketers want to grab user’s attention on any possible screen at any time of the day. This is reflected in the report of the IAB UK, which states that programmatic share of mobile ad sales has nearly doubled from 37% in 2013, to 64% in 2014. Moving to the present, the forecasts for its growth say that this year, mobile programmatic will account for 60.5% of the total US programmatic display ad spending.
- Programmatic premium is in the focus. Taking mobile aside, premium marketplaces have a large share of the programmatic pie, as publishers increasingly adopt programmatic direct and auction-based private marketplaces. Big brands are especially eager to run programmatic campaigns through private deals, instead of buying media across a network of sites they cannot control. In premium contexts, they can increase brand awareness among target audiences, which in turn can increase sales.
What is your advice for digital marketers considering making the jump to programmatic?
First of all, when it comes to emerging technologies, it takes some time to adapt. As soon as marketers take a closer look at the benefits of programmatic, they’ll realize its relevance as a new advertising tool.
Not only it is an efficient and transparent tool for ad campaigns, it also gives marketers better control in each step of the process. More importantly, marketers can efficiently allocate their budgets, and receive real-time analytics. Finally, there’s the opportunity to modify the campaign in real-time, depending on the feedback they get.
In my opinion, those who still haven’t tried programmatic are missing a great opportunity to stand out in the crowded digital environment.
Big thanks to Bonadza’s Co- Founder and Head of Marketing for providing insights on the (hopefully less confusing) world of programmatic! Have additional questions about programmatic that we can answer? Ask us in the comment section below.