Programmatic advertising is a method of marketing that utilizes technology – to buy & sell online advertising space.
- It targets specific audiences
- using “real-time data” in ways that humans simply can’t accomplish
- ultimately delivering specific advertisements
- on the streaming services they use
- delivered to the right people
- at the optimal times
- on the devices they use
Basically no more wasted ads & no more wasted ad spend
- Wholesale CPM rates vs 3rd party resellers – that add roughly 25-35% – to our wholesale rate
- 98% CTV vs a mix of Mobile, Desktop, set-top-box, VOD (Video on Demand) –> often less than 50% CTV
- Daily live dashboard reporting vs reporting not live or daily
- 3rd party validated reporting by Comscore vs no 3rd Party validation
- Zip code level delivery vs mobile or desktop user cookie-based data targeting –> Inaccurate in CTV environments
- Easy on-boarding
- Daily refresh rate of device graph used for targeting mobile & desktop centric vs other providers that only refresh theirs monthly
- THOUSANDS of 3rd party “BITS” data segments for targeting
- No co-viewing – billing is based on 1:1 ad impression delivery vs many add a “co-viewing” factor which increases the amount of impressions they claim to deliver which directly affects the CPM costs.
- In addition to having verified reporting by ComScore, Zenon takes the extra step to identify any fraudulent behavior in the OTT/CTV space by integrating Device Atlas – The world’s leading device intelligence solution
- Device Atlas delivers real-time device detection in all connected environments including web, mobile & native apps in CTV
- Zenon has a direct integration with DeviceAtlas
- Detects which CTV device ads are viewed down to make & model of TV
- Relays data to Zenon to detect fraud spoofing devices, bots, etc.
- Leading companies such as AOL, Nielsen, Adobe, & IBM all use Device Atlas
- Zenon’s wholesale pricing eliminates resellers from your profit margins & penetration performance
- Zenon uses 3rd party validation for our analytic reporting….other providers do not 3rd parties to validate their results
- Zenon does not use “co-viewing”.
100,000 impressions with Zenon = 100,000 actual TV spots
with other providers 100,000 impressions = 57,142 impressions
- Zenon’s platform partners with industry leading data providers
- Zenon leverages over 6,000 data bits to help segment campaigns better than any other platform in the market
- Zenon offers more flexibility within campaign structures to be able to make changes on the fly
- Zenon’s reporting updates are daily….vs other providers that only update their reporting weekly or monthly
Because the ad impression is running on a CTV or TV Set there is a legitimate argument that more than one person is watching the TV. Nielsen and Comscore have developed a co-viewing factor. This factor is 1.75 viewers instead of just 1 viewer.
This means a few things for you as the advertiser: Ex. 100,000 impressions of CTV or OTT at $39 CPM
- With Zenon, 100,000 impressions = means you are paying for 100,000 actual TV spots (when buying CTV or OTT)
- With others, 100,000 impressions = you are paying for only 57,142 impressions & not necessarily actual TV spots (when buying CTV or OTT)
- With Zenon, a $39 CPM means that you are getting 1,000 TV spots for $3,900
With others, $39 CPM means you only get 57,142 impressions & not necessarily TV spots
- Costs: Zenon = $39/cpm x 100,000 TV spots = $3,900
Others: $39/cpm means you’re paying $3,900 for only 57,124 impressions
A basic bidder to buy programmatic ads will start at around $20,000 a month to license. The larger the audience buy in terms of volume of impressions and markets they’re in, the more data the DSP will need to ingest and therefore the larger the cost.
When running Programmatic advertising, the key is to let the campaign optimize properly. That means the following:
- Do not start & stop campaigns once they’ve begun to run
- Do not underbudget a campaign
- Run any campaign for at least 90 – 120 days to allow the Artificial Intelligence, machine learning, algorithms & programs optimize the campaign uninterrupted
Programmatic advertising brings data into the ad buying equation – making the process both automated & programmable through algorithms & software platforms.
This cuts out the “human error” aspect of buying/placing media advertising that required a salesperson & makes the whole process automated based on data.
To put it short, programmatic advertising ends up being cheaper in the long run.
- It yields a faster, more efficient, and comprehensive return than traditional methods
- Advertisers can optimize their campaigns in real-time, and review them on an ongoing basis
- Campaign performance in terms of “qualified buyers” really begins to optimally perform around the 6-10 month mark.
For starters, programmatic advertising is effective. … They’re always “on,” which means you can enjoy the benefits of real-time ad bidding, no matter when the optimal time occurs. Programmatic advertising enables you to answer your customers’ questions before they even ask them.
Based on expert suggestions, Marketing experts & agencies often recommend that small businesses spend anywhere from 10-18% of their gross revenue on marketing.
And, according to a study, small businesses tend to follow this rule, spending around 13-15%
Programmatic advertising is sold via ad exchanges.
Publishers offer ad space to be bought programmatically & advertisers enter automated bids to buy programmatic ad space in real time – according to advanced analytics.
Those analytics help determine where to place the ad & get the most impressions for the best bid.
- Reduced overall advertising costs
- Ability to optimize and target the right audience in real time
- Higher ROI
- Leveraging unique data sets, both 1st- and 3rd-party
Four major components make up the basic framework of a programmatic advertising ecosystem.
A demand side platform (DSP), supply side platform (SSP), data management platform (DMP), and an ad exchange.
Each part of the system works together to serve both publishers and advertisers and allow them to trade effectively.
Programmatic advertising uses technology to automate the buying & selling of ad impressions on media platforms.
These impressions could be for digital display banners, native advertising, online video ads & several other ad types.
This helps advertisers place targeted ads to their desired audiences – on the devices they use & on the streaming services they use – which ultimately delivers a more relevant advertisement to those desired audiences
Programmatic advertising is the use of automated technology for media buying (the process of buying advertising space), as opposed to traditional (often manual) methods of digital advertising.
“Real Time Bidding” (RTB) is considered to be a cost effective way to buy media with a large audience.
Facebook Advertising is a form of Programmatic (Mobile) Advertising.
While its primary function is as a social network, there is the necessity to ensure advertising shown on the platform that is both non-intrusive while also able to create the results it’s advertisers require.
Since giant technology companies like Google & Apple no longer share data, the introduction of “walled gardens” has negatively affected Facebook campaign performance.
Hashcode data has been used to circumvent those walled gardens for better Facebook campaign performance.
Though it can vary depending on the three factors discussed in the section above, the general rule of thumb is to allocate between 5 and 20 percent of your gross revenue to re-invest in advertising. This figure can be shocking to some, especially those that have not invested much in advertising before.
Businesses of all sizes are showing an increasing appetite for targeting & data-driven strategies. Programmatic advertising is exploding in usage today!
CTV allows you to target and only show ads to your ideal consumer. It’s also the only way to reach two types of audience group:
- People wanting to watch TV according to their own timeframe (also known as “cord-cutters”)
- People that reject linear TV altogether (known as cord nevers).
- With a Self-Serve platform:
- your abilities may be limited (lack of targeting, limited inventory)
- there are usually hidden costs
- hidden minimum fees & spend requirements for specific audience targeting, geography, etc.
- there’s a tremendous learning curve –
What works for Campaign A doesn’t mean it works for Campaign B
- With a Managed Service provider like Zenon:
- you have more abilities & better results
- Access to exceptional inventory & data pricing
- wholesale pricing on CPMs
- expertly-negotiated private inventory & data targeting costs by leveraging our buying power
- you tap into the experience of knowledgeable teams
- near constant access to alpha & beta tests with data & inventory partners (due to our experience and relationships).
Programmatic is only going to grow in the future.
The concept offers a far more effective & efficient way of buying/selling digital ad space.
The world of programmatic remains complex, but at Zenon we have the expertise to help you understand it.
The terms “programmatic” & “display” – refer to 2 different aspects of digital advertising.
- Programmatic refers to how ads are purchased & placed.
- Display refers to the format of the ad & where it appears — visual ads placed on a network of websites.
OTT is the delivery mechanism for TV/video content online – usually through streaming or video on demand (VOD) –
in addition to, or “over the top of” traditional network providers like cable subscriptions.
CTV is an internet-connected device a customer uses to watch TV/video content online.
Connected TV (CTV) devices allow video content to be streamed to the television from the internet without a traditional cable connection.
Examples: Roku, Apple TV, Fire TV Stick, Smart TV, Etc.
- Personalization – the use of data feeds & dynamic creative can target your audiences on a wider scale & result in higher conversion rates.
- Use video – research this year found that ads using video during 2020 received an 85% better CTR.
- Mobile-first – more people are using smartphones, which means digital ad spend for mobile is increasing.
Creating dynamic mobile ads could see you outsmart the competition.
- Test & optimize – this will be especially important in a world without 3rd-party cookies.
Test what you’ve done & optimize accordingly for better CTR’s.
- CTV Specs for :30 sec videos
- Size Ratio = 16:9
- Length = 30 seconds exactly***
- File Format = .mp4 or .mov
- File Size = Max size 200MB
- Frame Rate = Must be constant: 23.98, 25, or 29.97 FPS