In the context of mobile app marketing, programmatic refers to programmatic advertising or programmatic media buying. It is becoming increasingly popular among advertisers, who are poised to spend 70% of their paid user acquisition budget on programmatic channels.
What is programmatic?
Programmatic advertising is the automated process of buying advertising placements on websites and apps, operated by software and operating systems such as Demand Side Platforms (DSPs). Programmatic leverages data insights and machine learning algorithms in order to allow advertisers and publishers to optimize their app install campaigns.
The process of buying and selling digital ad inventory takes place within ad exchanges, where there are two main players: Demand Side Platforms and Supply Side Platforms. The former bid to buy ad spaces at the impression level on behalf of advertisers while the latter sell ad inventory of publishers.
Impressions are made available to the Ad Exchanges and are assessed based on data collected on the user associated with them. DSPs decide whether or not and how much to bid based on their targeting criteria. The DSP with the highest bid wins the auction and gets its ad shown to the user in the publisher’s website or mobile app.
There are different subcategories of programmatic advertising such as Real Time Bidding (RTB), Private MarketPlaces (PMP), Open MarketPlace and Private Deals.
Why is it important?
Advertisers and publishers are leaning more and more towards programmatic advertising for app install campaigns because of its multiple benefits. Indeed, programmatic advertising offers full transparency in the process of buying and selling ad placements.
The media buying is fully automated and it takes less time than negotiating with publishers one by one. In addition, there are sophisticated targeting options which help advertisers to target the right audience and acquire users who are more likely to become high-LTV customers for their businesses. For example, DSPs can target users based on their geographic location, internet connection, operating system, internet service provider and even gender and age.
Furthermore, programmatic technologies allow DSPs to use machine learning algorithms to optimize the media buying process and the performance of their app install campaigns. By matching data about prices, targeting and ad creatives, it is possible to show the right ad formats to the right people, increasing the likelihood of acquiring high-quality users. As a consequence, optimizing and scaling the results of app install campaigns has never been so easy for advertisers.
What you need to know about programmatic?
- Programmatic advertising is an automated process of buying and selling digital ad placements;
- Advertisers leverage programmatic technologies to run app install campaigns through Demand Side Platforms (DSPs);
- Programmatic Advertising provides full transparency, sophisticated targeting capabilities and powerful machine learning optimizations;
- In programmatic advertising, DSPs buy ad placements on behalf of advertisers while SSPs sell ad inventory of publishers and the whole process takes place within Ad Exchanges;
- Publishers sell ad places on behalf of publishers in order to maximize their revenue with the auction systems.