How Advertising Helps in Buying | Rtb And Programmatic

Quyen Nong, Aug. 4, 2015Programmatic Advertising
How Advertising Helps in Buying | Rtb And Programmatic

Many companies are struggling with defining how advertising helps in buying (really!) In response to that, marketing departments are struggling to present measurable ROI results to the management and get approvals for moving the advertsing campaigns forwards. This post is for the MARCOM managers to help understand how RTB and programmatic buying can stimulate better conversion for sales.

In our post ‘’6 Questions you want answered about programmatic buying’’ we gave the answers to six key questions about programmatic to help you understand what this advertising buzzword actually means. Since then, we at 7marketz have done extensive research to find out how financial institutions can successfully implement programmatic as an online advertising tool.

In this article we want to explain how the adoption of real time advertising can have a positive influence on your campaign performance. Let’s start by looking at some of the key benefits of programmatic buying.



Programmatic eliminates negotiations with individual publishers and all the activities that come with it, such as faxing or emailing contracts back and forth, which increases workflow efficiency. The entire transaction with numerous publishers can be done through one interface. Therefore the more mundane tasks are eliminated and as a result you have more time to concentrate on what really matters: optimization, writing better content, designing better creative and collecting more data.


With real time advertising, impressions are evaluated and bought individually and thus your campaign budget is spent more efficiently. Traditional adverting buys in bulk, which means a portion of the impressions is essentially wasted. With programmatic, each impression is unique and can be shown across many different publishers. So in theory you could buy 1000 impressions and those impressions can come from a 1000 different publishers.


Another advantage of programmatic is that is gives you the ability to scale up very quickly. Advertisers can advertise on a global basis through one interface on hundreds of thousands of publishing websites. That’s the reason why programmatic offers such a huge inventory. Moreover, because it’s so easy to scale, you can find smaller, niche publishers that were previously very difficult to locate because of their smaller size. So now your ads can be displayed on websites you didn’t even know existed!


Programmatic enables you to track, analyze, change and optimize campaigns in real-time. As a result you can make changes to your campaign in terms of your targeting or delivery and instantaneous shift your focus to those ads that perform best. Results can now be measured quicker and more efficient than ever.


The increased amount of data that is available to you as an advertiser is a big advantage, since you have a lot more data to base purchasing decisions on. Examples are that programmatic gives you the ability to leverage your first party CRM data by uploading it onto the platform or by purchasing and using additional third party data from third party data providers for your campaigns. Consequently you have a lot more demographic, psychographic and behavioral data at your disposal, enabling you to serve the right ad, to the right person, at the right time and in the right context.

target the right people


Unfortunately, that's not the case. While programmatic offers many benefits, there are some concerns among advertisers as well. Let’s have a look at some of the main concerns that exist in the market today.


Programmatic at times lacks transparency in ad placement, meaning that the advertiser is not sure where the ad is placed on the internet. There is also a lack of viewability, a metric that proves that the ad was actually seen by a page visitor, and therefore proves that the impressions are truly valuable. However, there are things you can do to increase transparency, such as doing direct deals or by using a private market place. The concern regarding viewability of impressions will soon be a thing of the past, since platforms are beginning to offer things such as guaranteed viewability, a mechanism that makes sure that the ads are seen for a minimum amount of time.


The fact that advertisers aren’t always sure in which context their ad is being shown raises concerns about brand safety. Some brands might not want to be associated with certain types of content, since the quality of that environment might diminish their brand. As mentioned in the transparency paragraph there are measures you can undertake to improve transparency. Those measures such as direct deals or private exchanges also help to ensure brand safety. Moreover, most exchanges use strict auditing procedures to make sure the publishers are of high quality.


An industry survey conducted in 2014 by the Interactive Advertising Bureau (IAB) found that only a mere 22% of marketers use programmatic buying for their advertising. The most important reason for this was found to be a lack of skills. The complexity of programmatic makes it difficult to bring the technology in-house. Implementation requires expertise and investment in terms of time and money.


Now that we covered some of the pros and cons of programmatic, let’s discuss what it can do for your advertising performance.


Cost of media

The CPM rates are generally lower when buying programmatically. So why is this the case? Well, impressions are auctioned off on an open exchange where everyone can bid on the ad space. In this scenario the price is not set by the publisher, but instead it’s determined by what the market is willing to pay for it. Therefore we speak of market-driven pricing, meaning that (in theory), the advertiser never overpays for impressions.

Improved targeting

As mentioned earlier in this article, with programmatic advertisers can make use of their own first party data as well as third party data to better reach their potential customers. Because with programmatic the advertiser only buys those individual impressions that are valuable, less budget is wasted/spent on serving impressions to people that don’t fit your target audience profile.


More accurate data

The reason for improving lead quality is in line with what has been said about lowering the CPL, since improved targeting as a result of more accurate data is found to be the main reason for improving the lead quality. Improved targeting gives you a better chance of reaching your target audience. Moreover, with programmatic the context of the webpage can be discovered, so this already gives you some idea about whether those page visitors might be interested in the product or service your ad promotes.

Granular real-time reporting

Granular reporting shows you what works and what doesn’t. With those reports, black and whitelists can be created, which allows you to prefer or block certain publishers and as a result narrow the placement of the ads, further helping you to reach your target audience.

Google DoubleClick Programmatic Future

So now that you know the pros and cons of programmatic and how it can improve your advertising performance, only one questions remains:


There are many players in the market when it comes to programmatic, each having their own strengths and weaknesses. Some focus on a self-serve approach while others insist on a managed service. Some platforms specialize in direct response campaigns while others favor branding. It can be quite a cumbersome task for advertisers to determine the right programmatic partner. We have interviewed all the major platforms in the market to determine the right partner for companies operating within the financial industry. Based on your personal campaign goals we can help you select the right programmatic partner. Subscribe to our blog to get the overview comparison of the top advertising platforms in our next blog post!

Want to know more about how programmatic can help you achieve marketing goals? You can now schedule a free consultation with our Marketing Associate to help you get started with programmatic buying.

Have you started using programmatic buying yet? Which other questions would you like to have answered about programmatic? Let us know in the comments section below!

Quyen Nong
Author Quyen Nong

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