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Google Advertising vs Programmatic

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While it’s hard to believe, Google’s AdWords (now known as Google ) appeared in early 2000, which would mean that this ecosystem is already of full legal age. In the beginning, advertisers were given the ability to target ads using keywords or excluding selected ones. Settlements were based on CPM, and the data available to advertisers provided only basic metrics such as CTR or number of impressions. Since then, AdWords has come a long way, so the possibilities once available were only what it offers advertisers today.

Meanwhile, competing platforms and ecosystems will appear (and disappear) – more or less used by a wider audience, but for a long time, AdWords was king. Until Programmatic arrived. It used real-time bidding, which was made in the US in 2009, and since then, year on year, it has been occupying a larger and larger share of the advertising market. It is so effective at this that, in 2018, 83% of display advertising purchases in the United States, about $ 50 billion, were made programmatically.

In Poland, the market is not yet mature, but we can no longer say that it is in its infancy. In 2018, it already constitutes 31% of the market and is registering several dozen percent growth year-on-year. It is expected to increase to 46% by 2020. In our opinion, this is only the beginning and has the potential to become the first choice for most advertisers in Programmatic Poland.

But, “Why?” Not to leave to ask, in the next part of the lesson we will compare the possibilities of the two ecosystems and try to explain a bit the reasons for which advertisers decide to move their advertising more and more often towards programmatic Budget.

Inventory / Access

Currently, provide access to all pages associated with the Google Display Network system, which, as of now, has over 2 million pages that reach 90% of Internet users with their content. not bad. However, Programmatic does not limit itself to just one inventory provider. It provides access not only to Google’s advertising network (via the Display and 360 platform), but also to other ad exchanges (such as AppNexus, Adform, Rubicon Project, and most recently Amazon, with their own Wants to take a share of the programmatic market) DSP), thanks to which the available inventory is very large. Additionally, some publishers offer their ‘exclusive’ ad space (for example, advertising on the home page) only if the purchase is made directly through the (direct purchase) or through the Advanced Purchase model available in Programmatic.

Setting goals

Both Google advertising and programmatic provide very broad targeting capabilities. These include such options:

Contextual targeting – through keywords or through a topic associated with an advertisement. In this case, advertisements will be displayed on any related websites;

Targeting based on the interests of customers and their activities – Ads will be targeted at people with specific interests, shopping habits, or those who are actively considering the purchase of products or services / services offered by the advertiser Are similar;

Demographic targeting – gender, age, location, language and more. There are a myriad of possibilities and we will probably describe them in a separate text.

But when Google uses advertising – for targeting – only the data it collects itself (yes – they are of good quality, and yes – the reach of their collection is wide), allowing programmatic re-use of the data One step goes beyond the external provider, the so-called 3rd party data. These are usually collected by specialized DMPs (data management platforms), which allow advertisers to use data, e.g., users who read content devoted to stock market information, users who cook soup , Or users who live in places where the temperature is higher than 25 ℃. And even though the additional cost of such data can be a disadvantage (most often, a predetermined rate is added to the cost of purchasing every thousand views using such data), the chances of reaching those customers The ones you’re really interested in growing considerably.

Ad format

In short: text ads, display ads, video ads, HTML5 ads, and app ads. These are the formats that Google offers officially in its Google ads. Also available are rich media formats, but a significant number of ‘affiliate’ publishers under AdSense simply do not support this technology, which moves down the available inventory.

In programmatic purchasing models, rich media, as well as formats such as screening and native advertising (which were recently used in non-standard campaigns), are becoming more and more common. Although it should be noted that they are available in Programmatic rather than the more advanced procurement model.

Reporting

Google Ads allows reporting of statistics for currently running campaigns, ranging from a few hours to a few metrics. Since Programmatic uses real-time bidding, reporting programmatic campaign results is practically available in the next minute. Monitoring the effectiveness of the campaign carried out in Programmatic provides an important advantage in this case – it enables more effective optimization of activities.

Province models

Right now, promotions offer marginally more assortment of accessible choices. When running a crusade, you can look over the accompanying models:

CPM (cost per factory) – a fixed rate for each thousand perspectives on an advertisement

CPC (cost per click) – a fixed rate each time a client taps on your advertisement

CPA (Cost Per Action) – You pay for each predefined move a client makes, and the activity is up to you – it very well may be the acquisition of an item or membership to your bulletin.

In Programmatic, just a trade off is made in the CPM model, however determined in a marginally changed way, that is: CPM = (consumption/thought) x 1000. This is because of the way that every scene can have an alternate rate as you offer independently for every one of them. Notwithstanding, you should recall that in spite of the fact that buys happen in CPM, the stage on which you make buys empowers the client to advance costs dependent on chose markers – for instance, you can modify CPC or CPA rates Can diminish.

Cost and section extend

The last (yet at any rate) issue we need to analyze is the supposed section edge to have the option to promote in a particular biological system. Furthermore, in spite of the fact that Programmatic really permits you to show your promotion on the Economist.com landing page too (which will, be that as it may, meet a few costs), you regularly meet the base month to month costs prerequisite on your picked stage Have to do.

Lamentably, similarly frequently these sum to requests of a couple (or twelve or something like that) thousand PLNs, which might be inconceivable for a little promoter to cross, in spite of the fact that there are some specialty discussions without such prerequisites (sadly , They have numerous limitations).

Google advertisements have no such issue – the stage takes into account any measure of publicizing to be bought, and costs can be expanded with respect to your requirements. To summarize, automatic Google offers much more potential than advertisements, beginning with the chance of arriving at a more extensive market with increasingly nitty gritty focusing of potential clients and closure with progressively viable advancement. In the wake of including all the advantages, it turns out to be clear why increasingly promoting spending plans will be moved towards this environment – by 2020, Programmatic’s piece of the overall industry is relied upon to be over 45%.