The most complete! Terminology and characteristics of the domestic programmatic advertising industry!

This article mainly introduces some important concepts about programmatic advertising , which is suitable for industry novices to learn, enjoy~

1. What is programmatic advertising? (Quoted from Baidu Encyclopedia)

Programmatic Advertising refers to the use of technical means to conduct advertising transactions and management.

Advertisers can programmatically purchase media resources and use algorithms and technologies to automatically achieve precise target audience targeting, delivering ads only to the right people.

The media can programmatically sell media resources across media and terminals (computers, mobile phones, tablets, Internet TVs, etc.), and use technology to stratify advertising traffic and perform differentiated pricing (e.g., prices in first-tier cities are higher than those in second- and third-tier cities, and prices during prime time are higher than those in other time periods).

Therefore, programmatic advertising can be defined as: people-oriented precise advertising targeting; automated, digital sales and procurement of media resources.

My personal understanding: Programmatic advertising is an advertising transaction method that connects advertisers, media traffic owners, and audience users through big data analysis platforms and bidding platforms.

2. Some explanations of terms related to domestic programmatic advertising

If you are involved in this industry, you will often hear some things, such as: we are mainly a DSP platform; this advertising space is generally settled according to CPD; if IG wins the championship, will the skin be rewarded to each champion team member according to CPS? And so on.

For me (a newbie) who just started to enter the advertising industry, it was very confusing! Although we can also look it up on Baidu, we often wait until others have mentioned it but we don’t know it before we go to Baidu. So here I would like to advise students who want to enter this industry to do some homework in advance.

1. Involving more commonly used platform terms

(1) DSP (Demand-Side Platform)

The demand-side platform provides advertisers and agencies with a comprehensive management platform to manage multiple digital advertising and data exchange accounts through a unified interface. Common platforms include Guangdiantong DSP and Toutiao’s Pangolin DSP.

(2) SSP (Sell-Side Platform)

That is, the supply-side platform and the main source of media traffic. Common platforms include Baidu SSP and 360SSP.

(3) RTB (Real Time Bidding)

Real-time bidding is a bidding technology that uses third-party technology to evaluate and bid for each user's display behavior on millions of websites. It is a technical method.

(4) DMP (Data-Management Platform)

The data management platform integrates scattered data from multiple parties into a unified technical platform, and standardizes and segments the data so that users can push these segmentation results to the platform in the existing interactive marketing environment.

The following is a picture of the latest Chinese programmatic advertising technology ecosystem in 2018:

(Image source: China Programmatic Advertising Technology Information Network)

1. Involving more commonly used industry terms

(1) CPA (Cost Per Action)

It is an advertising billing model. As the name suggests, it charges according to behavior (Action) as an indicator. This behavior can be registration, consultation, adding to shopping cart, etc.

(2) CPM (Cost Per Mille)

Pay per thousand impressions. CPM is a type of pay-per-view advertising. The advertiser pays for each display of the advertiser's ad content.

(3) CPD (Cost per day)

Cost of display in one day. Simply put, it means "position package per day", but the display volume will be guaranteed.

(4) CPC (Cost Per Click)

Cost per click. CPC is a pay-per-click advertising, where you are charged based on the number of times your ad is clicked.

(5) CTR (Click-Through-Rate)

That is click-through rate. Click-through rate = number of clicks/number of impressions. The target audience, region, bid, and creativity set in the delivery strategy are all important factors that affect the click-through rate.

(6) CPT (Cost Per Time)

Cost per time period. CPT is a type of advertising that is charged based on time. Many domestic websites charge according to a fixed fee model such as "how much per week".

(7) CPS (Cost Per Sales)

The advertising amount is converted based on the actual number of products sold. CPS is a type of advertising that calculates advertising fees based on the actual number of products sold. This type of advertising is more suitable for shopping, shopping guide, and URL navigation websites, and requires accurate traffic to bring about conversions.

(8) ECPM (effective cost per mille)

The advertising revenue you can get for every thousand impressions. The display unit can be a web page, an ad unit, or even a single ad (you can choose it in the "Data display based on" drop-down box in AdSense's "Advanced Report"). By default, eCPM refers to revenue per thousand page views. eCPM is just a parameter used to reflect the profitability of a website and does not represent revenue.

(9) CVR (Click Value Rate)

Conversion rate is an indicator to measure the effectiveness of CPA advertising.

(10) ROI (Return on Investment)

Return on investment. Refers to the value that should be returned through investment, that is, the economic return that an enterprise obtains from an investment activity. Return on investment (ROI) = (pre-tax profit/total investment)*100%.

(11) PV (page view)

That is, page views.

(12) UV (unique view)

Refers to the natural person who accesses and browses this website through the Internet

(13) ADimp (ADimpression) :

Number of times a single ad is shown

(14) DAU (Daily Active User)

Number of daily active users. Often used to reflect the operating conditions of websites, Internet applications or online games. DAU usually counts the number of users who log in or use a product within one day (statistical day) (excluding users who log in repeatedly), which is similar to the concept of visitors (UV) in traffic statistics tools.

(15) ARPU (Average Revenue Per User)

Average revenue per user. An indicator used to measure the business revenue of telecommunications operators and Internet companies. ARPU focuses on the revenue an operator gets from each user within a period of time.

(16) CPV (Cost Per View)

Display advertising is an advertising model that charges according to the actual amount of advertising displayed. That is, when a user visits a member site, the advertiser's ad is displayed and the ad is charged accordingly. CPV can be used to display pictures, graphics, text, Flash, videos, etc.

3. Characteristics of domestic programmatic advertising

The following is based on the author's current understanding. If you don't agree, feel free to argue hahaha~

1. High programmatic efficiency

Why is programming considered a feature? Let me first talk about how advertising was implemented when programmatic was not available. Before programmatic marketing began, most advertising spots were purchased through traditional ad scheduling or ad packages for certain time periods and days (it’s okay if you don’t quite understand, I’ll give you an example).

Traditional delivery:

For example, sponsor A has a new product to promote and has found a splash screen ad space on the mobile client of media giant 666. After a meeting, sponsor A felt that the splash screen advertising space of Media Big Brother 666 would have a good effect on the promotion of the new product. He planned to spend 1 million yuan to buy this advertising space this month, but wanted to run it on this advertising space for a week first to see the effect!

But, unfortunately, the splash screen advertising space of media giant 666 has been spotted by many sponsors, which means that even if you have money you cannot place the ad immediately. You have to wait until the sponsors in front of you have lined up and it is your turn before you can place the ad. There is no hope of spending all the 1 million budget in October, so I will go to other media giants to have a look. I saw that the information flow position of Media Big Brother 777 mobile client is good, so I will buy it and have a look. However, it is difficult to buy the information flow position of Media Big Brother 777 because the advertising space is reserved during the prime time from 6 to 11 pm, so you can only put it in non-prime time.

shortcoming:

1. After reading this, do you feel that the media has accidentally missed out on 1 million yuan? The sponsors can’t find a good way to spend the money, and they can’t launch new products to understand the market situation.
2. In the case of programmatic advertising, most sponsors will place the advertisements and then settle the bill with the media. They will do the work first and pay later. (It is easy to create a situation where I do something but you don’t pay me)

advantage:

1. The sponsor can verify the effect first and then settle with the media based on the effect, thus ensuring the sponsor's effectiveness.
2. With traditional manual scheduling, media giants can take advantage of their own strengths to place advertisements and maximize the effects.

Programmatic delivery:

For example, if sponsor A has a new product to promote and has money, he can first register an account on the DSP platform of media big brother 666 and recharge the account, and then choose the user group to target and the amount to bid. In this way, you can receive the money directly from Media Big Brother 666 and the advertising materials will pass the review. At this time, the ad space can be bid through RTB. If the sponsor wins the ad space in this bidding, then the ad can be displayed in this ad space. (Material review and RTB bidding are another area that needs to be discussed in detail, and I plan to introduce them in the next issue)

Advantages: In this way, a lot of manual scheduling operations and waiting can be saved, and the media bosses can receive the money first and then do the work without worrying about running away. The sponsor can also purchase the quantity he needs. At the same time, optimizers will also provide targeted optimization services based on the sponsor (large platforms)

Disadvantages: If you have too little money, you may not be able to compete for advertising space, which is relatively beneficial for small sponsors. Also, the media brother’s amount is relatively slow to show results, because less money means less effect! It is impossible for an optimizer to do this to a rich sponsor!

Having said so much, I wonder if you all understand now (mainly the newbies. When I was a newbie, I made up this story for myself and finally understood it).

2. Precision delivery has good effect

Accurate delivery can reduce the problems caused by traditional blind delivery and unexpected delivery. Deliver the right information to the right people at the right time and place to maximize advertising effectiveness. I plan to talk about this in detail in the next issue.

Okay, that’s all for today. I will continue to share my thoughts on domestic programmatic advertising and my insights into this industry. I hope you can give me more advice!