April 2, 2020
Programmatic Advertising – Real-time Marketing Case Study – FTU E-commerce 2018

Programmatic Advertising – Real-time Marketing Case Study – FTU E-commerce 2018


The whole idea of advertising, or in general,
marketing is basically to transfer your messages to the right people, at the right time. Back in the days, the advertisers buy spots
on television, radio, newspaper and billboards. Based on the interest of the mass audience. Of course they don’t buy from one, but from
hundreds or thousands of sites. This kind of advertising is expensive, ineffective
and time-consuming. Moreover, a great number of people were reached,
but just a tiny bit of that crowd expresses any likelihood to be interested in the ads,
or to even click on the ads. Therefore, Programmatic Advertising was born
so that millions of dollar would not go down in drain. PA create an auction environment where marketers
can buy ads automatically and totally eliminate the human’s aspect involved in the buying
process. Ad Network, Ad Exchange, SSP, DSP will do
it all for you. There are 2 kinds of PA: Direct Programmatic
and RTB. With DP, the cost and the inventory are fixed,
all the process of buying is automatic with no Human’s intervention. RTB, on the other hand, uses bidding mechanism
to exchange the ads, with non-fixed inventory and price. We will talk more about PA with RTB aspect,
because it’s more effective and popular than the other one. PA is all about showing a different ad to
a specific user based on specific data. Its platform uses big data containing personal
information of millions of online shoppers and consumers to classify the desired characteristics
based on demographics, psychographics, trends and so on. This helps to optimize the chance of making
purchases, thus lower the cost and enhance the profitability of ads. Programmatic marketing opens up a series of
opportunities, which would not be possible if ad placement was done manually, as it has
been done in the past. It allows advertisers to procure digital media
without having to pre-negotiate a price, so they pay only for the relevant impression
that they actually receive. They can also sign up for a minimum number
of impressions or a minimum budget, which makes digital advertising more flexible, and
they can buy digital media across publishers, which reduced administration costs. However, there are also some downsides about
PA. First, the advertisers cannot decide where
their ads are placed. It can be posted on inappropriate sites. Second, they also have difficulties justifying
whether the ads are on or not, since the agency and the web are not directly in communication. And last are web fraud, which is built to
depict marketing agencies, lure them into thinking those are real websites with real
users. In addition, many companies choose not to
use PA, since their products might only be attractive to certain types of web users,
or publishers who don’t want their pages to look like a hotpot of products. In that case, they would prefer the old traditional
way of advertising.. The Magna Global Programmatic Intelligence
report gives forecasts for programmatic by format from 2014 to 2019. They estimate that by 2019 it will be 50%
of all advertising, which is less than the Forrester estimate, but still a significant
growth. With this growing concern over data security,
marketers will need to become more approachable and evolve their advertising. Some publishers are now not allowing users
to view their site at all if they are using adblockers. However, restricting the number of retargeted
ads will limit the feeling of “stalking”, which may prove more effective in gaining
users trust and removing the negative stigma surrounding online ads. This is why customer data is becoming so highly
valued (one of many reasons), and why programmatic advertising is growing so fast – it was projected
to become where the majority of non-search digital ad spend went by the end of 2015. It was revealed at the end of 2017 advertisers
will have spent an estimated £3.39 billion on programmatic trading. This is a 23.5% rise from the year before. Programmatic spend now equates to 79% of all
UK digital ad spend, as reported by MarketingTech. To count how many ads satisfy the requirements,
we choose Facebook as our favorite portal. According to the results, we can divide them
into two categories. The first one is that the ads in Facebook
can be interesting or sort of interesting with users. Facebook will know what kinds of ads those
users enjoy or dislike, or whether the ads are useful or not. And the second one is that Facebook does not
work well in order to show the suitable ads for the appropriate users. That means those users will see many ads do
not relate to their needs or their hobbies. We can explain the different kinds of “profiles”
mentioned here are specific data. Following are those “profiles”
Demographics: Demographics include age, gender, race, income, marital status, employment status,
nationality, and political preference. Geography: The geographical area in which
consumers reside and work. Interests
Time of the day: The time users actually use their phones, computers or other internet-connecting
devices Device
Psychographics: include information about users’ lifestyle, life stage, personality,
attitudes, opinion or even voting behavior. All the profiles are important with advertisers. If the advertisers have those information,
they will obviously know about users. The more users use internet, the more cookies
users leave behind. So that is the way advertisers do. When the users use search engine, search ads
will know users’ intentions at every instance of searching. Then they will guess what users are enjoying
or caring and display some ads relevant to those searchs instantly. It depends. The websites users visited do not always mean
users’ interests. May be those websites just is clicked accidently
or users find that for other reasons, not for caring about those products. On the other hand, when the users also go
to those websites, stay for a few minutes so those users can be interested in those
products, and that might be useful to display an ad for those products.

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