Display Ads in Programmatic: A Publisher's Guide
In today's digital landscape, attention spans are shorter than ever, and static banner ads are easily ignored. But what if there was a way to deliver targeted ads that resonate with your audience without blasting them with irrelevant content?
Programmatic display ads are one of the most common ways of advertising. Publishers (website/app owners) and advertisers alike are constantly seeking efficient and targeted advertising solutions. Display ads automate the buying and selling of ad placements, unlocking the benefits for both parties.
Recent statistics show that advertisers continue to invest more in display advertising, having spent $67.87 billion on this type of programmatic ads.
In this article, you will learn what is display programmatic advertising, understand key benefits, metrics and create a plan for how to begin with them.
What Is Programmatic Advertising?
To understand the concept of display programmatic ads, you need to think about the programmatic industry as a big ecosystem of participants that buy and sell advertising space online through automated software.
Imagine a complex commodity auction, but instead of physical goods, websites and apps are offering ad placements, and advertisers are bidding on those placements in real time using sophisticated algorithms. This eliminates the need for manual negotiations between advertisers and publishers, streamlining the process for both parties.
What are Programmatic Display Ads?
Programmatic display ads are a type of online advertising where the buying and selling of ad space is automated using software.
The Key Difference Between Programmatic vs. Display Advertising
But to fully grasp this concept, it's crucial to differentiate between programmatic ads and programmatic in general.
Programmatic: This refers to the method of buying and selling ad space. It's an automated approach that utilizes software and algorithms to streamline the process.
Display Ads: These are the visual formats used to deliver advertisements. They come in various sizes and forms, including banners, images, videos, and even interactive elements. Display ads are typically placed on designated areas within websites or apps.
To easily understand programmatic display ads, imagine a situation where websites and apps have little ad spaces like empty real shops, and advertisers have specific ads they want to show people. But instead of making phone calls, they use computers to match the right ads with the right spaces, super fast! That's the magic of programmatic display ads.
Example: Let's say a company selling athletic shoes wants to reach people interested in running. They set up a programmatic ad campaign targeting websites and apps about running, fitness, and healthy living. In the blink of an eye, the ad exchange matches their ad with relevant websites, and the next time you visit a running blog, you might see their ad for the latest running shoes, perfectly placed among articles about training tips and upcoming races.
How Programmatic Display Ad System Works
You are the Publisher. Imagine you own a website or app with designated areas where ads can be displayed. These valuable spaces represent potential revenue streams for you.
Supply-Side Platform (SSP). Think of SSP as your trusted partner in the advertising world. An SSP is a platform that connects you (the publisher) with a vast network of advertisers seeking to display their ads. You sign up with an SSP to make your ad inventory (available ad space) visible to potential buyers.
Demand-Side Platform (DSP). On the other side of the equation, we have advertisers. They utilize Demand-Side Platforms (DSPs) to manage their ad-buying strategies. Advertisers set their campaign budgets, define their ideal target audience (who they want to see their ads), and specify the type of ad format they want to use (banner, video, etc.) The DSP then acts on their behalf, searching for the most suitable ad space to deliver their message.
Ad Exchange. This is the central marketplace where everything comes together. The SSP you partnered with sends detailed information about your ad space to the ad exchange. This information typically includes the size, location, and type of ad space available on your website or app. Meanwhile, the DSP representing the advertiser informs the exchange about the specific criteria they're looking for in ad placements.
Real-Time Bidding (RTB). Now, things get exciting! With multiple advertisers potentially interested in your ad space, an auction unfolds in real-time. The DSPs representing the advertisers essentially bid against each other on your ad space. The bidding process considers various factors, including your audience demographics, the advertiser's budget, and the overall competition for that specific space.
The Winner Takes All (For This Impression). Just like in any auction, the highest bidder wins! Their ad is displayed on your website or app, reaching your target audience and delivering the advertiser's message. This entire process, from information sharing to ad delivery, happens in milliseconds, ensuring a seamless experience for your website visitors.
Why Use Programmatic Display Ads? A Publisher's Perspective
Programmatic advertising introduces healthy competition among advertisers bidding for your ad space. This competition can drive up the price you earn for each impression, ultimately increasing your overall revenue potential.
Programmatic platforms leverage sophisticated targeting capabilities. This ensures that the ads displayed on your website or app are relevant to your audience's interests and online behavior. This not only enhances the user experience for your visitors but also increases the effectiveness of the ads themselves.
Effectiveness of Programmatic Display Ads Compared to Traditional Methods
Traditional ads, like billboards or TV commercials, aim for a broad audience. They can be good for brand awareness, especially in local markets, and offer creative freedom. However, they lack precision and can be expensive.
Programmatic ads, on the other hand, are all about targeting. By using data and algorithms, they reach the exact people you want to see your ad. This laser focus makes them more efficient and potentially cheaper. Plus, you can track their performance in real time and adjust your campaign for better results.
Getting Started as a Publisher in Programmatic
If you're a publisher interested in leveraging programmatic display ads to monetize your online space, here's a roadmap to get you started:
Researching SSPs. Carefully evaluate different Supply-Side Platforms to find one that aligns with your website's traffic volume, content niche, and overall goals. Look for a reputable platform with a strong track record and features that cater to your specific needs.
Setting Minimum Bids. Before launching your programmatic campaigns, it's crucial to determine the minimum price you're willing to accept for your ad space. This minimum bid acts as a safety net, ensuring you don't undersell your valuable inventory.
Optimizing Your Website. Remember, advertisers are looking for high-quality placements for their ads. Here's how to optimize your website to attract them:
mobile-friendly design
In today's mobile-first world, ensure your website displays flawlessly on all devices, especially smartphones and tablets. A significant portion of your audience likely accesses your content through mobile devices, so a responsive design is crucial.
engaging content
High-quality, informative, and engaging content is the foundation of a successful website. It attracts and retains visitors, creating a valuable environment for advertisers to showcase their products or services.
user-friendly experience
Make sure your website is easy to navigate and provides a positive user experience. Visitors should be able to find the information they seek quickly and effortlessly.
Tracking Performance. Once your programmatic campaigns are up and running, don't just sit back and relax. Monitor key performance indicators (KPIs) such as impressions served, click-through rates, and revenue generated. By analyzing this data, you can identify areas for improvement and fine-tune your strategy for optimal results.
Building Partnerships. Consider partnering with other publishers in your niche to create a larger and more attractive pool of ad inventory for advertisers. This can lead to increased competition for your ad space, potentially driving up your revenue.
By following these steps and embracing the power of programmatic display advertising, you can unlock a new level of efficiency and profitability for your online space. Remember, programmatic advertising is a dynamic field, so staying informed about the latest trends and best practices will ensure you stay ahead of the curve.
Programmatic Advertising Platforms
Several programmatic advertising platforms connect advertisers and publishers. Some popular options include:
Google Display Network (GDN)
Amazon Advertising
The Trade Desk
Xandr
OpenX
These platforms offer various features like audience targeting, real-time bidding, and campaign management tools.
Reaching Your Audience with Programmatic Display Ads
Programmatic display advertising offers a powerful and efficient way to reach your target audience online. By leveraging automation, precise targeting, and data-driven optimization, you can achieve your marketing goals and maximize your return on investment.
If you're looking to expand your online advertising reach and improve campaign performance, consider incorporating programmatic display ads into your marketing strategy.
Publishers looking to monetize their website or app with Blasto have two main options. Prebid, an open-source tool, allows publishers to integrate Blasto alongside other ad exchanges, potentially leading to higher bids through real-time competition. Alternatively, publishers can connect directly with VAST integration. Regardless of the method chosen, Blasto offers publishers access to a wider pool of advertisers, potentially increasing their revenue through programmatic advertising.
