The term “programmatic advertising” refers to the process of using software -- instead of human interactions -- to automatically purchase advertising space based on predefined criteria such as the target user’s age, gender, occupation, and location. Other factors that define the target user’s experience -- such as the time of day when the ad is shown and the type of website displaying the ad -- are also important considerations when creating a programmatic campaign.
2 Types of Programmatic Advertising Campaigns
More than 50% of all digital display ads in the U.S. are purchased programmatically -- and the practice is becoming increasingly popular as customers spend more time online and on their digital devices. Today, programmatic campaigns can be divided into two categories: direct programmatic advertising and real-time bidding (RTB).
1. Direct Programmatic Advertising
Direct programmatic advertising allows advertisers to purchase a specific number of impressions straight from publishers; the transaction does not involve other ad exchange parties. Real-time bidding is an automated process that requires advertisers to bid for an advertisement space, and the banner of the highest bidder is displayed on the publisher’s website. Every business must determine their strategic advertising goals and then determine which type of programmatic advertising best suits their campaign objectives.
2. Real-Time Bidding (RTB)
RTB campaigns can benefit from pre-bid solutions that monitor advertising spaces before ad placements are launched. Some pre-bid solutions are used to set strict rules for bidding on placements, thus allowing advertisers to pay only for ads delivered to the targeted audience at a time chosen by them. Other pre-bid solutions block adverse or contextually unsuited placement of banners, thus ensuring brand safety.
For example, a company willing to advertise a product containing sugar may not wish to advertise that product together with banners related to the prevention of child obesity and tooth decay. To avoid the incompatible placement of advertisements, pre-bid solutions may scan pages for words that contain specific words (such as expletives). Simpli.fi, a programmatic platform for advertising, provides an extra layer of brand safety for hyper-targeted products -- Bugaboo strollers, for example.
Assessing Programmatic Marketplaces
Although programmatic campaigns have important advantages, they are not risk-free. In fact, 94% of digital marketers consider the quality of programmatic marketplaces to be a very or somewhat serious issue. Ad fraud in the field of programmatic advertising still occurs regularly in spite of the fact that some programmatic advertising platforms have implemented strong security measures and offer fraud-free guarantees. Manual pre-bid, anti-fraud measures are unlikely to be effective in the field of programmatic advertising as this type of advertising requires decisions to be made in a fraction of a second.
Related Content: Monsters of Advertising Fraud: Click Fraud
Protect Your Campaigns With A Proven Pre-Bid Solution
The best way to protect your digital advertising campaigns and budget from programmatic ad fraud is to use specialized ad fraud pre-bid solutions, like Anura. Anura can be easily implemented in programmatic campaigns to defend advertisers from nefarious actors, such as fraudulent visitors, who undermine their advertising objectives and revenue goals. Anura features a detailed reporting dashboard that gives users the ability to fully optimize their resources and execute advertising campaigns that are effective and secure.