Digital Media News

Advertising is the lifeblood of the internet. It funds a lot of the great content that we enjoy on a daily basis, and provides brands with the means to innovate; inspire and entertain. And withcontinual advancements in programmatic advertising technology, online advertising has never been easier, cheaper or more efficient.

You can see for yourself, by test-driving ourmarket-leading self-serve advertising platform, which delivers online advertising solutions that make it faster and easier for you to reach your target audience and generate that all important ROI.

Well-oiled machine

Our ad platform is constantly being refined, but it is true to say that it wouldn’t be the slick, well-oiled machine it is today without the support of our data partners, including Proximic.com, Bluekai.com (Now part of Oracle) Grapeshot, and our ever-growing number of integrated media partners — such as AppNexus.com, who we will focus on in this blog post.

What does AppNexus do?

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Some marketers are hesitant to embrace programmatic buying because of some common misconceptions about it. Here are three myths about programmatic buying and the truth behind them.

As we move into the digital age, machines are taking on a much bigger role in online ad buying. In fact, according to a new study by Magna Global, (the ad buying arm of Interpublic Group), programmatic buying, in which marketers use computerized systems to target users based on consumer data and Web browsing histories, is expected to jump 52 percent by the end of this year, to $21 billion globally.

This impressive growth is being fueled by a desire from marketers to cut transaction costs, improve efficiency, and see a stronger return on investment of ad spend.

Programmatic is a major departure from the traditional online ad buying process, in which digital ads are bought and sold by human media buyers and salespeople. Programmatic buying automates the processes that humans have historically had to deal with, like sending insertion orders to publishers and dealing with ad tags.

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There are two primary types of online media buying: Managed and RTB (Real-time bidding). Not all buying strategies use optimization to determine a bid amount. It is therefore critical that you understand which buying strategy the ad platform or ad network you are working with is using.

Managed

Managed buying refers to a situation where an ad platform or ad network is buying inventory from a publisher with which they have a direct financial relationship. This is also known as Buying Direct Inventory, which involves pre-brokered agreements between an advertiser and publisher to deliver a certain amount of specific inventory for a preset cost. Managed bids are always based on booked revenue. Only one Managed bidding strategy utilizes optimization:

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