Programmatic Advertising Platforms and DSPs are mentioned frequently when discussing digital display and video marketing, but what, exactly are they?
Programmatic Advertising Platforms and DSPs (Demand Side Platforms) are companies that have negotiated ad placement opportunities with website publishers who wish to sell advertising space (SSPs or Supply Side Platforms). This saves the advertiser from having to reach out individually to every publisher to negotiate ad space, such as you would do in a newspaper or magazine. These negotiations have been done at scale, providing a wide network of opportunities. Some of the most well-known DSPs include Google's DV360, Criteo, The Trade Desk, and Amazon.
Programmatic advertising is the use of automation to buy and target digital advertising, typically display and video ads. Algorithms allow the advertiser to choose the audience they would like to target, and then deliver the ads at the most efficient cost with the best chance for success. The algorithms can also create the ad content to best appeal to the individual who will be viewing the ad based on past or predicted behavior. Success can be measured by several different metrics, including click-through rates, conversion rates, impressions, and in some cases, sales and leads.
The biggest difference between Google Ads and other Programmatic advertising platforms is the level of customization available. Simple campaigns may be run very successfully through Google ads, with an abundance of transparency as to where the ads were shown and the behavior on the website once an ad has been clicked. Google also has a vast reach, ensuring that you can reach a large number of prospective buyers. Most importantly, Google Ads is available to anyone who wishes to create an account for a specific business.
Beyond Google ads, more robust Programmatic Advertising Platforms can incorporate data from additional sources to augment and refine their targeting capabilities. These platforms are not accessible to the individual but required a robust annual spend that only large agencies can provide.
The Amazon DSP is a little different than some of the others, as it can focus on the e-commerce efforts of its sellers by sharing on-site consumer behavior. For instance, a seller’s ad can be shown to an individual who has recently viewed a competitor's product but has not yet purchased, or an individual who purchased 60 days ago and may be ready to replenish their supply. These can be invaluable insights for e-commerce businesses.
So, as a dealer, do you need to know the ins and outs of programmatic advertising? Probably not. You should be able to ask your ad provider these four questions, which define your strategy:
- What is my creative?
- What is my budget?
- How are my ads being targeted?
- How do you measure success?