How does programmatic internet advertising work? About advantages, disadvantages, and types

Programmatic advertising is a type of advertising that has seen increasing demand in recent years in the

Internet advertising

market.

Programmatic advertising, which can respond to user needs and situations, is expected to be efficient and effective, and many companies are paying attention to it and adopting it.

This time, we will explain the mechanism, advantages and disadvantages, and types of programmatic advertising.

What is programmatic advertising?

Operational advertising is ”

advertisement that is operated while changing and improving bid amounts, advertising materials, etc. in real time

.”

In other words, this is a different delivery method from the traditional pure advertising where you reserve and buy a slot on a specific site.

For example, you can see programmatic ads like the one below on your computer or smartphone screen.

Advantages and disadvantages of programmatic advertising

The biggest advantage of programmatic advertising is that you can control the budget limit, distribution period, and distribution method.

Since it can be measured in real time, you can immediately make adjustments by stopping it if it is not effective or adding more if it is effective.

You can also narrow down your targets in detail, such as user attributes, region, and devices such as PCs and smartphones, and change the advertising surface to suit the target.

You can choose the billing method, whether you want to pay per click or per impression, so you can customize it to suit your needs.

On the other hand, the disadvantage is that detailed settings such as advertising content, keywords, distribution area and time can be made, but experience and knowledge, real-time changes, and analysis of results are required. It takes time and effort.

It is so difficult that there are agencies and companies that specialize in operation.

Types of programmatic advertising

There are the following types of programmatic advertising:

・Listing advertisement

Listing ads, also known as search-linked ads, are an ad distribution method that displays ads at the top of search results on Yahoo! and Google search sites.

This is an advertising method in which when users use search sites or browse sites on the Internet, advertisements linked to the keywords they enter or the content of the site they are viewing are displayed on the screen.

It has the advantage of being able to effectively display advertisements in areas that users are interested in.

*Please see the column below for the difference between

SEO

and

listing advertising

.

Differences between “SEO” and “Listing Advertisement” and their respective characteristics

・

Displaynet network advertising

Displaynet network advertising is a method of networking and distributing frames for homepages and blogs that can be purchased on an ad network (a system that collects multiple advertising media to create a network and distributes advertisements to those media at once). is.

Unlike banner ads, which are pure advertisements, they can be distributed to groups that are thought to be of high interest to users.

・SNS advertising

Typical types of SNS advertising include Twitter advertising and Facebook advertising.

In addition to general metrics such as clicks and impressions, there are also features unique to SNS, such as the ability to spread the word through likes and tweets.

・Video advertisement

Video advertisements refer to advertisements that appear when you watch videos on YouTube, etc.

This is a type of advertising whose needs have increased in recent years and the market is expanding.

・DSP advertising

DSP advertising is an abbreviation for “Demand Side Platform” and is a service for advertisers that allows advertising to be distributed across multiple adnet slots.

Advertisers can bid for advertising space against targets in real time.

Billing is done on a per-impression basis by connecting to the media’s distribution platform

SSP

.

・

Retargeting ads (remake ads)

There are many cases where a user does not convert (achieve the goal of each site) or make a purchase with a single Internet visit.

Retargeting advertising is a distribution method that obtains the user’s cookie information and uses this information to display an ad based on the content that the user saw the first time when viewing another site.

Retargeting ads aim to help users remember what they have seen in the past, leading to a conversion or purchase.

Although it is an efficient distribution method for acquiring conversions, it is difficult to achieve optimization with simple retargeting ads alone, so it is difficult to achieve optimization by adjusting various segments and distribution aspects, and expanding the number of users who have converted in the past. will be done.

*Please see the column below for the difference between ad networks and DPS advertising.

Differences and comparison between ad networks and DSP advertising – Advantages and disadvantages

summary

◆Proactive advertising is a distribution method that optimizes targets, unit prices, and distribution, unlike pure advertising where you reserve and buy a slot.

◆ Typical examples include Yahoo! and Google’s search-linked ads, display ads, YouTube video ads, Facebook ads, and Twitter ads.

◆ Types of programmatic advertising include listing advertising, display net network advertising, SNS advertising, video advertising, DSP advertising, and retargeting advertising.