There is one thing that is commonly affecting individuals as buyers, and property sellers and real estate developers or brokers – programmatic advertising, the process of buying ad inventories in the market or through ad exchanges.
This level of automation, experts predict, will gravely impact buyers and sellers in the real estate game.
Let’s begin by understanding what programmatic advertising is.
Media buying, traditionally involved face-to-face interactions, with extensive planning and lead times. Only then will your ad be placed in the market along with a long process of paperwork, and more interactions.
Programmatic advertising or ad buying is nothing but the use of software to execute complex algorithms to buy digital advertising including banners, display ads, native ads, and videos. Programmatic refers to the process of reaching the right audience at the right time. This time we are referring to may occur at multiple points during the journey of purchase, and programmatic advertising, can allow companies to capitalize on these points to target their audience who stand a better chance of buying your service or product.
Programmatic advertising or media buying is achieved through demand-side platforms (DSP), supply-side platforms, and data management platforms (DMP).
The only difference between DSP and DMP software platforms is their target market.
Advertisers and marketers use DSP platforms since it enables them to find the most affordable ad impressions and target audience for their product or service. Through real-time bidding, buyers have direct access to multiple sources of inventories. This technology provides advertisers or marketers the value of single impressions such as clicks, time spent on site, and so on, based on the visitor’s browsing behavior (buying and browsing history).
The main purpose of supply-side platforms is to maximize ad impressions. Through a single interface, publishers use this platform to connect their inventory to multiple ad exchanges, ad networks and DSPs. Managing digital inventories to maximize revenue is possible through the supply-side platform.
DMP software platforms are primarily used to analyze and manage first-party data including website cookies, social data, and advertiser data gathered from the CRM. It also gathers second-party data that includes social data, location, POS, website cookies, and data used by DSPs. Third-party data might also be used by a DMP, but this data des not have a direct relationship or impact with the customers that advertisers intend to market to.
Real-time bidding and programmatic advertising
Most often, real estate marketers use real-time bidding (RTB) for digital advertising. Until recently, most advertisers including media agencies thought RTB and programmatic advertising is the same.
RTB is merely a component of programmatic advertising and applies to a real-time auction that happens between an ad exchange and a DSP.
RTB favors the buyer in terms of affordability and is often used to move lower-quality inventory. However, through RTB, the advertiser is left in a blind spot since it mentions the site categories on which the ads appear, but not the exact site, quality or context.
Programmatic software platforms allow advertising agencies and media buyers to buy guaranteed ad impressions in advance from targeted publisher sites. They connect to the publishers directly to negotiate appropriate pricing, quality or context. The prime advantage of this platform is that a media-buying agency or an advertiser can analyze the inventory quality and buy them in advance for a particular price for a certain number of guaranteed spots.
Through this platform, advertisers or media buyers can direct targeted messaging to the right audience. This message will be delivered to a targeted audience at a favorable time slot from top publishers. Once an advertiser buys the slots, ad impressions are served almost immediately to speed the whole process.
Ad exchanges, ad networks and private marketplaces
An ad exchange is an online platform backed by real-time bidding and auctions each impression to the highest bidder. This includes Google, Microsoft Media Network, AppNexus and Rubicon Project.
An ad network is a controlled online platform for buyers and sellers (advertisers and publishers, respectively) that accumulates publisher inventories and divides it according to gender, age, location, and so on. This includes BuySellAds and Google AdSense.
A private marketplace refers to highly-capable publishers who can control advertisers and the type/number of creative on their website without dealing with individual buyers.
Benefits of programmatic advertising
Real estate conglomerates and franchises, for a national campaign level, benefit from programmatic advertising through brand-building activities for increased reach and ROI.
One of the biggest perks of programmatic advertising is delivering real-time data from multiple parties related to the property-search process. This allows advertisers to modify their campaigns based on the data provided. For instance, advertisers can use real-time data to modify their ads in terms of the time in which their ads run, and the devices and/or platforms that they appear on.
Programmatic advertising also provides advertisers with flexibility. For instance, if a real estate company specializes in selling midcentury contemporary properties, s/he can create a campaign targeting specific audience and track their data. In case the results are not satisfactory, s/he can change the campaign accordingly and run the campaign based on other audience preferences based on the data that the programmatic platform provides.
The programmatic platform also provides data tracking features that enable advertisers or real estate marketers stay updated on where their ads receive the most traction and at what times. Within a short frame of time, the platform clearly defines the reach, and helps in determining if the campaign provides optimum ROI.
The automated feature that the platform provides enables advertisers gain a certain amount of free time during campaign execution. They may use this time effectively to analyze campaign activities and apply strategies for increased conversion rates.
The automated advertising industry has transformed how individuals buy and advertisers/marketers sell online and is here to stay. But, the key to gain better conversion rates and ROI for your advertising spend is integrating both online and offline data.