Digital advertising is complicated enough without having to learn all of the acronyms and new buzzwords that are frequently introduced throughout each year. Programmatic advertising is one of the new kids on the block and has recently come into the spotlight during the last one-two years.According to eMarketer (2017), programmatic display spending is projected to reach around $33 billion and continued to rapidly increase. It is becoming the most sophisticated method forbuying online advertising. Yet, there are many marketing firms and companies who are stillconfused about the advantages of programmatic advertising versus direct sales advertising.The most basic explanation of programmatic advertising is that it is computer software thatautomatically purchases advertising space based on the parameters that are initially input.We believe programmatic advertising is gaining ground for the following four reasons. They willencourage marketers to rethink their advertising methods for 2019 and beyond.

Pricing
In direct sales, buyers select the cost-per-thousand (CPM) price they are willing to spend for abulk purchase. So regardless of the reach or range of the advertising impressions, the costwould be the same across the board.Programmatic advertising is based on auctions per impression. So the price of each impressionwill vary. If an advertiser wants a specific amount of impressions (also known as ad viewing)they may need to pay a higher CPM.

Sales
In direct sales, a block of ads are pre-purchased at a fixed price and can be used at anytime inthe future.Programmatic advertising sales are based on real-time auctions; therefore, each impression’scost varies.

Exposure
In programmatic advertising, each impression is evaluated and concurrently auctioned. Thehighest bidder within the group of appropriate advertisers is the one whose advertising is seen.The result is that the impression will be seen on various websites, as the purchase is based onthe user’s profile and information. So the exposure is more in tune with the prospect’s websurfing interests.

In direct sales media buys, the impressions are sold to clients who want their ads placed inspecific places, such as Instagram or Facebook.

Methodology
Direct sales are manual and require negotiations and constant communication until the client’sbudget needs and goals are satisfied.Programmatic advertising uses sophisticated algorithms to purchase ads. Although there aresome manual processes, it is primarily technically-driven. There is less wasted time, budget andfewer miscalculations produced by human error.

This step-by-step example will help demonstrate these differences:
1. John Doe clicks on a webpage link and the information is loaded into the browser.
2. If there is information about John Doe within the publisher’s database it will be sent to theadvertising server. The server will discover any advertising campaigns that match the needsof John Doe.
3. If there is, then an appropriate ad will be shown. If not, the server will send out a request toselect marketers, ad networks, and supply side platforms (SSP) in an attempt to fill theimpression with an appropriate ad.
4. When there is no response, the server will go forward to satisfy the ad purchase. It may usean ad from a private exchange or send out a request to an open ad exchange. The adexchange will receive any pertinent information about John Doe, the url being opened alongwith the ad format.
5. The ad exchange will then send out a bid request accompanied by the constraints and datarequired to win the ad space.
6. Once the bid is complete, the ad is sent to the server which tells John Doe’s browser whichad to display.
7. By the time the browser has loaded its home page, the ad will be in place.
8. The winning bidder’s advertising server is rewarded with John Doe’s tag data and initialexperience.
“That all happens in about 200 milliseconds,” states Kurt Snyder, Colby’s CEO. He adds, “It is technology at its finest and gives our clients the edge,” he adds.

Colby Prospect Generation has been in the lead generation business for over a decade and iscommitted to using leading edge software and technology. Our clients have experiencedconsistent, successful results while saving time and money.

We also support media buys with Drip email campaigns, algorithmic outbound calls and on-demand post cards all intended to surround and immerse your prospects with germanemessages and promotions.For a consultation or to schedule an in-depth review of your marketing activities, call (443) 440-5043 or drop us an email at info@colbydirect.com