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  • Chances are high that programmatic bidding is already a part of your ad campaign- that’s the case for 50% of all digital display ads sold. Digital display ads today are sold in one of two ways: as real-time bidding (RTB) and Programmatic Direct.

    Simply put, programmatic direct advertising works like this: if you’re an advertiser (a buyer), you need ads. You buy them from a publisher (the seller) who creates the kind of content your consumers would find attractive. The system worked well in the early days of the Internet, but then there was more demand than supply, and more publishers than advertisers. To ramp up and meet publishers’ needs, ad networks formed and increased the number of available ad placements and formats.

    After ad networks formed and began selling premium ads in batches, real-time bidding started. RTBs can be effective because they target a specific audience, such as only Gen Z students who are enrolled in college or moms with at least two children under the age of five. A publisher can set a predetermined price and bid on ads being auctioned off.

    Programmatic advertising has become an integral part of the advertising landscape. After all, what publisher wants to pay for ads that aren’t relevant to consumers? The challenge with programmatic is that with so many sources, it has become difficult to assign value to the ads-until now.

    Google Ad Manager changes the game

    Google Ad Manager will offer a unified first price auction. The auction is intended to level the playing field for buyers and advertisers. Google Ads will not share bids or reset prices until an auction is won. At that time, the buyers pay the price bid for the ads. Ad Manager’s goal is to make the impression process simpler while offering more value.

    According to Google Ad Manager, you can count on:

    • First price auctions in simplified programmatics. Simplicity rules in selling and purchasing ads.
    • Custom creatives. You still have creative control over your ads. In fact, management tools and formats can be customized more than ever.
    • Native style suggestions. No advertiser wants ad copy that looks out of place. Google will recommend styles that complement websites. This feature is now live.
    • What the change means

    The first auction simplification of the digital advertising market will have deep ramifications for buy-side players who have relied on second auction pricing bids and sales. The good news is Google’s newest position in programmatic landscape means that ads will have an assigned value and cannot be overvalued or lowballed.

    As a result, many sellers will have to put pencils to paper as they recalculate their pricing structures and strategies for selling digital ads in a fluid market. It will take a while for the dust to settle as players learn the new rules for engagement. Google Ad Manager will continue to send out updates, and the transition will be completed by the end of the year.

    Until then, digital marketing agencies will be helping buyers and sellers regain a position of advantage on the playing field.

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