No. 14: Paid Advertisement. Programmatic. Native. Here is what you need to know

All these new terms.. Lately, I introduced Search Engine Optimization and Paid Search to you. Now I would like to show you a bit more about what companies or small businesses can do (besides having a good search result) in order to place their advertisement/content more efficiently and generate greater traffic. With efficient I mean, having them placed as results on search engines so that they are easy to find for visitors and potential leads on one hand (that was done by SEO and the boost of Paid Search which helped to get a visible ranking in Search Machines) and on the other hand showing ads where they are relevant, on content related pages, and don’t turn into waste. Aaah, how can that be done? This is where the term programmatic comes in!

It is very hard to explain programmatic.. this video claims to easily explain an eight year old how it works, but honestly- I didn’t understand s*&t after watching it. So don’t feel bad if you also don’t get it in first place. I did some further research and try to explain it to you now!

Let’s brainstorm: How should a business know where/on which sites their ads would have the greatest impact? Also, there always might be pages which were not considered by the business as opportunities to place its ads, but where the buyer persona/the optimal customers actually spend a lot time on. There is no way for a business to know all the content related pages where their content or ads would make sense. It would be so much work to find the relevant ad spaces and keep them up to date. But this is how things worked out in the past, similar to stock exchanges. Back then, you called your ‘broker‘, told him what you were looking for/how the perfect spot for your ad would look like, and he would call you back soonish with what he got. Now listen old sport, today all this happens within less than a second, without human negotiations, manual insertion orders and all the other bureaucracy stuff. Programmatic advertisement allows you as the business to set up a profile with your perfect ad space/ad environment (categories can be size, format, page category, interests profile of customers who shall see the adad, and more). Then, once the profile is up, let the machine do the rest and send it find ad spaces that are interesting for you- it’s faster and it’s cheaper than the old way! But robots replacing people also has it’s disadvantages. It can happen that you have your ad placed on a page which you wanted to avoid, think of a fisherman goods commercial on the sea sheppard page, outch- so be careful when setting up your profile. A machine doesn’t make sophisticated decissions and knows the ideas of a campaign, it follows its algorithms and brings solutions. So be aware of what exactly you tell the machine to look for, just as a side note.

The job isn’t done once the machine delivers all the results of where you can place your ads. How do you get the permission, what does it take to place the ad on the space? It is similar to what we talked about in Paid Search. Here comes real-time bidding and programmatic ad buying. Real-time bidding/RTB is a category of programmatic ad buying. RTB happens in real-time auctions, just like in Paid Search, but programmatic buying also allows advertisers to reserve ad spots from contractor sites. This would be called programmatic direct. RTB however happens everytime you open a page, in less than a second (real-time haha..) Your browser history/cookies represent your profile which deliver the base of what your interests are. In the second you open a page, advertisements based on your interests will pop up. Exactly, it can be the same page opened by two individuals from different computers/origins, showing the same content but different ads around it. What actually happened is that in less of that one second, a bidding determined which ad would be shown to you. Each ad provider placed a specific bidding amount for different relation cases. The higher the relation between your profile and the ad is, the more likely this ad will pop up, as long as the bidding amount of the provider is also higher than the ones of the competitors.

One super important thing.. everything said about Programmatic is absolutely useless as soon as one clears the browser history/cookies every other day or uses ad-blocker. Programmatic has no power over this one. Good that the majority doesn’t do such things, right? Also, in close future programmatic might be practiced not only in the internet, but also in TV!

Native was the other expression. Native, the term was a little confusing for me as a foreigner, because it doesn’t mean native in the sense of native tribes, native language speakers and such. Native is a form of internet advertising which aims to attract users by providing content. The content is very similar to the actual offer, which is already known by the user. It is the goal to place the content in a way, that it is not recognized as advertisement but supplementary information to a product. This is done in order to communicate to the user without being to insisting. Typical examples for Native are Advertorials, Viral Marketing campaigns and Content Marketing. The big problem with Native is that users often cannot differ anymore between content that comes from he company or a third party. In the examples of blogs, content might be either from a third party user who is specialized in the field of the current topic, but it also could be the company itself blogging about its product to highlighten it. The result is a general distrust of users, when it is not obvious by whom the conent was delivered; if it is advertisement or neutral content that should support the buying decission. There are many ways to do advertisement wrong, and especially when a business uses customer opinions for their advertisement, they should make sure to communicate it clearly. Customers always should be able to say right away if the content is from the business or somebody else.

No. 14: Paid Advertisement. Programmatic. Native. Here is what you need to know

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