What is programmatic media buying?
Programmatic advertising is the process of using algorithmic tools and automated technology for media buying, which is essentially buying advertising space. The goal of programmatic media buying is to serve ads to users at the right time, and at the right price, increasing the likelihood of a desired action or conversion.
How does programmatic advertising work?
Programmatic advertising works by automating media selling by publishers (website owners with advertising space to sell) and media buying by advertisers.
The digital advertising market involves ad exchanges that run automated auctions to sell and buy ad spaces. Programmatic advertising refers to an algorithmically-controlled process that enables these transactions to take place with dynamic rates and within a fraction of a second. It incorporates online targeting methods to identify the best placements for ads, allowing advertisers to have better ROI.
In the mobile app space, programmatic advertising works very similarly to web-based programmatic media buys. Mobile programmatic media buys rely on more comprehensive data and insights from larger networks to ensure the ads are as relevant to the viewer as possible.
Mobile app programmatic media buying methods
Similar to digital programmatic advertising, mobile app programmatic media buys have three methods of buying (and selling): open marketplace (OMP), private marketplace (PMP), and direct buys from publishers (i.e., apps themselves).
Open Marketplace refers to an open inventory by several publishers, including mobile apps, that offer their inventory to any advertiser. Media buys in this category use a real-time bidding auction (RTB) where advertisers will have to bid for available inventory offered by publishers.
Private Marketplace involves an exclusive marketplace where publishers offer their inventory to specific groups of advertisers at a fixed price. In this type of marketplace, advertisers are not bidding in real-time auctions, and they typically receive a premium placement compared to bids on an open marketplace.
Direct is a private transaction between one publisher and one advertiser. Advertisers can access an inventory of a specific mobile apps without having to compete with other advertisers.