Programmatic advertising

The articles Real Time Bidding , Real Time Advertising and Programmatic Advertising overlap thematically. Help me to better differentiate or merge the articles (→  instructions ) . To do this, take part in the relevant redundancy discussion . Please remove this module only after the redundancy has been completely processed and do not forget to include the relevant entry on the redundancy discussion page{{ Done | 1 = ~~~~}}to mark. Martinguenter ( discussion ) 13:07, 25 Aug 2015 (CEST)

Programmatic advertising or programmatic advertising is a term used in online marketing . It describes the fully automated and individualized buying and selling of advertising space in real time . Advertising banners or commercials tailored to the user are delivered on the basis of the user data available . The individualization of the advertising space usually takes place via an auction process in which, after checking the user relevance for the advertiser's campaign , the highest bidder is awarded the bid and is allowed to control the advertising banner. This process usually only takes a few milliseconds. The term programmatic advertising is often incorrectly used as a synonym for the term real time bidding , which only describes the auction part.

origin

The technology of programmatic advertising originally came from the USA and is increasingly replacing the manual purchase of advertising space. The beginnings were made by companies such as Yahoo and MSN , who made their corresponding ad inventory available with targeting options for the first time . In October 2000, Google followed suit with the self-service advertising program Google AdWords . When Google announced the acquisition of DoubleClick in April 2007 and the acquisition was finally completed in March 2008, a new era began. At that time, people were still talking about the age of real time bidding. In the course of time, specialized service providers have emerged who plan, implement and optimize programmatic advertising solutions on behalf of advertising companies. It all started with companies like Unidesq in Germany, Austria and Switzerland.

Differentiation from real time bidding

In principle, programmatic advertising can be seen as an extension of the term Real Time Bidding (RTB). While RTB only describes the auction process, in which all advertisers on an Open Marketplace can participate equally in the auction for the corresponding advertising space, Programmatic Advertising goes much further. Because of the increasing expansion of technology, there were also transaction models that could not necessarily be processed via RTB. These include, for example, private deals that are only concluded between individual publishers and advertisers, or automated guaranteed models. Programmatic Advertising thus describes all processes, market participants and procedures that connect publishers and advertisers with one another.

The four types of programmatic transactions

The previously mentioned transaction models were classified by the Interactive Advertising Bureau (IAB) according to two attributes. On the one hand, categorization is based on the type of inventory and on the other hand according to the price model. The type of inventory describes whether the inventory is freely accessible to all advertisers or whether the publisher can assign certain user rights. The price models range from fixed prices to a price that is set by the highest bidder during the auction.

Automated Guaranteed

Also known as a private deal, it describes the sale of certain advertising space in the one-to-one model. This model therefore comes closest to classic media buying. With the Automated Guaranteed there is no auction, but the advertiser receives the advertising space under a guarantee and at a fixed price determined in the course of negotiations. The advantage over the original and manual deals lies in the connection to an ad server . This can be used to forward targeted data in the course of the Request For Proposals (RFP) or the success measurement. Furthermore, it can be ensured that as soon as the guaranteed overlays have been delivered, the inventory is returned to the open auction.

Unreserved Fixed Rate

Although this type of transaction is processed in an Exchange environment, it is based on a fixed price (CPM, CPC, etc.) specified by the publisher. Unreserved Fixed Rates are mainly used by advertisers who like to make their campaigns plannable and predictable.

Invitation-Only Auction

In principle, the invitation-only auction follows the principle of the open auction, but with the difference between the limited auction participants. The publisher determines in advance which advertisers can participate in the auction. The main advantage here is the brand safety on the part of the publisher.

Open auction

Also called real time bidding , describes the original transaction model in which the inventory is freely accessible to everyone and the price is determined in the course of the auction.

Auction process

The entire bidding process is triggered when a user enters a website on which there are advertising spaces that are monetized using programmatic advertising. A bid request is generated via the connected supply-side platform (SSP) and passed on to the demand-side platform (DSP). All auction properties that define the priorities of the transaction models, for example, are also passed on via the bid request. All advertisers, marketers and agencies whose campaign properties (targeting, advertising format, price, etc.) match the user and the free advertising space can then submit their bids to the SSP via the DSP. The highest bidder then receives the bid according to the "2nd price auction" principle, after only having to pay one cent more than the second highest bid. After the auction, the auction winner's advertising banner is integrated into the publisher's website via an iFrame and displayed to the user. The entire bidding process takes place within less than 100 milliseconds and is therefore imperceptible to the user while the page is loading.

criticism

The practice of real-time auctions for personalized advertising is unsustainable, according to the UK Data Protection Authority. a. because it violates the GDPR .

Web links

• Whitepaper - Fundamentals of Programmatic Advertising
• Information from the BVDW
• AdTrader Conference - Programmatic Media Economics Congress
• d3con - the largest specialist conference on programmatic advertising
• further definition of programmatic advertising

Individual evidence

1. ^ Google Company History , Retrieved October 29, 2015
2. ^ Google: "Why we're buying Doubleclick" , June 26, 2007
3. ^ IAB: Understanding Programmatic and Automation - The Publishers' Perspective , Retrieved October 29, 2015
4. ↑ heise online: British data protectionists: Personalized advertising practice GDPR-contrary. Retrieved August 19, 2019 .