In the old days, if an advertiser wanted to buy media inventory from a publisher, they would do this manually and directly. This can be a tedious process, which involved negotiations, insertion orders (IOs), manual tracking, and long waiting periods. The advertiser had to track the results manually in order to see where the ads were performing the best. Additionally, because advertisers typically purchased media on a CPM model, they bought impressions in bulk - the same ad on the same app. Regardless of the user demographic and behavior, every user was seeing the same ad.
As programmatic advertising continues to mature, advertisers have the choice of buying media for mobile app marketing through a few different channels. The three main channels include open exchanges, private marketplaces (PMPs), and private exchanges. Each channel has its own benefits but the main differences amongst the three are the number of publishers, transparency, and control. Advertisers should choose a media-buying channel depending on the campaign objectives.
In recent years, social media has become a popular choice for mobile app marketing. Facebook, in particular, has been growing significantly in terms of its advertising footprint. With over a billion users, it’s not hard to see why an increasing number of advertisers gravitate toward this social media platform. And in many instances, Facebook does offer a scalable and cost effective app marketing solution. However, for app marketers looking to optimize any metrics beyond app install, Facebook might not be the best answer.
Mobile programmatic advertising can be challenging in many way - but if done thoughtfully and strategically, the return on investment (ROI) can outweigh the challenges. The truth is that in every industry, there will always be hurdles ahead. As this industry face and overcome one hurdle, a new one is bound to present itself.
Adoption of programmatic advertising has been growing rapidly over the past few years - and it’s not too difficult to see why. By automating the process of buying and selling media, it provides access to large amounts of audience data (for better audience targeting) as well as a large inventory for media placement.
However, programmatic advertising is notwithout its flaws. Facebook’s decision to nix the Atlas Demand-Side Platform (DSP) last month puts the spotlight on one of the biggest concerns facing programmatic advertisers: quality of inventory.