🤔 #27. What is Programmatic? The Future of Marketing & Advertising

Programmatic is the the future of digital marketing! Simon Penson from Zazzle Media gives us a clear explanation of programmatic marketing, advertising & media buying.
 
5 Questions You Can Answer After Listening To This Episode On The Future Of Marketing & Advertising With Simon Penson:
1. What is programmatic marketing and how does it work?
2. What’s the difference between programmatic advertising and programmatic content marketing?
3. Back in the MySpace days, which rapper’s songs would you find on Simon Penson’s profile?
4. How can local businesses cash in on programmatic?
5. Where does programmatic fit into the marketing landscape of the today and the future?
Don’t tell your competitors, but programmatic is the the next big thing in digital marketing!
Simon is the Founder and Managing Director of Zazzle Media—the UK digital content marketing agency, not the ecommerce gift shop) which is now part of the IPG network. At Zazzle, Simon specialises in building audiences of value for his clients, from search, social and influencer channels. He’s also somewhat of an authority on all things programmatic.
After reading his really thorough article on programmatic delivery, we were super keen to have this little chat. Simon does a great job of explaining programmatic content marketing and programmatic advertising/media buying in layman’s terms, which is especially helpful for those of us who are a bit lost on the subject 🙋🏽
 
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Video production by our friends at Thirty3South Films in Newcastle
What Does Programmatic Marketing Mean?
Programmatic marketing refers to the automated bidding on advertising space in real time, for the opportunity to show an ad to a specific customer, in a specific context.
Think of programmatic as a way to advertise and share content in a similar way to social platforms like Facebook. That is to say, marketers are targeting audiences based not on keywords or the website they’re visiting, but on a more comprehensive stack of data that includes their wants, needs & actions.
 
How Does Programmatic Work?
Programmatic bidding takes place via algorithms. These bidding algorithms operate during millisecond-long auctions as a webpage is loading.
To best describe the process of programmatic marketing, here’s an example:
Dave is looking for doughnut shops online. He comes across an article about The Best Doughnuts in Australia and clicks on it.
The article’s publisher GoodFood probably has some information stored on Dave in its Data Management Platform.
GoodFood will send Dave’s relevant info to an ad server, to see if they have a campaign that wants to target him.
If a campaign is found that fits, then the ad is shown to Dave. Easy peasy lemon squeezy.
If no campaign on this server is directly targeting Dave, it then turns to programmatic marketing.
The server takes Dave’s browser info, the website URL and the ad type to selected bidders including traders and ad networks.
Each bidder has its own algorithm, evaluating the request based on Dave’s data, their own targeting criteria and budget.
Once evaluated, the bidder’s algorithm selects the optimal creative (which may be a simple ad or a bit of relevant content) and places a bid.
The Demand-Side Platforms (DSPs) are where advertisers lurk, searching for specific types of people and spruiking what they’re willing to pay for each one.
On the other hand, the Supply-Side Platforms (SSPs) are where the publishers and media owners ha...