Programmatic advertising for small business

What is programmatic advertising

In a nutshell, programmatic is how ad space is bought and sold; it’s an automated process that uses specialized software and algorithms. It enables publishers to generate revenue from their ad inventory through content monetization and helps advertisers efficiently reach their target audience. Importantly, programmatic is an ideal solution for both app and website owners, including those starting out and with a smaller audience, as it reduces the manual and tedious work and negotiations required in direct deals, where advertisers buy a certain number of ad impressions from publishers at a fixed rate.

An important part of programmatic advertising, used in private marketplace programmatic and open exchange programmatic (which are popular auction types), is real-time bidding (RTB). RTB enables a real-time auction to occur, during which advertisers bid on individual ad impressions as they become available. This process happens in milliseconds, ensuring that the highest bidder’s ad is shown to the right user at the right time. This way, programmatic ad buying might be more beneficial for publishers, as it helps maximize the value of each ad impression by allowing multiple advertisers to compete for it.

Programmatic advertising platforms

You can think of the programmatic system as a series of communicating vessels, where various components, such as Supply-Side Platforms, Demand-Side Platforms, and ad exchanges, function together in real time. The goal of this partnership is to connect the right ads with the right users at the right time, boost the publisher’s earnings from ad inventory sales, and ensure that advertisers effectively reach their target audience. Additionally, it’s worth acknowledging that if one part changes, it affects the others. In the programmatic world, every decision, whether it’s bid prices or available inventory, impacts the whole system. Here you’ll find more detailed information on crucial advertising platforms:

• DSPs – Demand-Side Platforms cater to advertisers. There, they can purchase digital ad inventory, select pricing, audience, and ad placements, and review analytics. Two examples of DSPs include Google Ads and Display & Video 360 (DV360);
• SSPs – Supply-Side Platforms are ad tech platforms designed for publishers. Platforms like Google Ad Manager (GAM) help to automate the sale of digital ad inventory, connect with a wide range of demand partners, and optimize ad revenue;
• Ad exchanges are connecting advertisers and publishers through Demand-Side Platforms and Supply-Side Platforms. Ad exchanges act as a virtual marketplace that facilitates transactions between two sides, thanks to automated bidding;
• DMPs – Data Management Platforms are used by publishers, advertisers, and agencies to gather user data from various sources and build detailed audience profiles. It helps other platforms, including DSPs, SSPs, and ad exchanges, to enable personalization and accurate targeted advertising.

Who is a small publisher?

There is no one-size-fits-all definition for “small publisher”. This label is relative and may vary depending on the market, industry, or geographic area. In one situation, it might describe a solo blogger, while in another, it could refer to a medium-sized publisher. Ok, still – there must be some numbers – here they are:

• Let’s cut to the chase – how many monthly page views does a publisher need to have to be considered a small publisher? A good indicator is the AdSense calculator, which helps to estimate potential yearly ad revenue after selecting a content category, region, and, of course, number of monthly page views. In this case, to check possible earnings, the minimum number of monthly visits is 50,000 (however, please note that there is no minimum traffic requirement to start monetizing with AdSense). When it comes to optAd360 requirements, for some regions, we accept publishers with 50,000 monthly page views, while others must reach 500,000 to qualify. When it comes to apps, at least 50,000 downloads are required;
• Now, let’s focus on the bottom line, meaning how many monthly page views mark the upper limit beyond which a publisher is no longer considered small? Of course, once again, it’s only a rough estimation. It’s generally assumed that small publishers are those that generate fewer than 500,000 to 1 million page views per month. In contrast, Google Ad Manager requires a minimum of 5 million monthly page views to gain access to the Ad Exchange, but it’s worth remembering that there are other ways to gain access to it. By partnering with Google MCM partners (Multiple Customer Management), like optAd360, you can benefit from Google AdX, an ad exchange network, without the need to become an expert to increase your ad revenue.

Why programmatic is a good choice for digital publishers of all sizes

Although the article on the benefits of programmatic advertising is already available for you to read, here’s a short summary and some additional insights:

• One of the most significant advantages of programmatic for smaller publishers is that it delivers strong results without requiring a large team, especially if you work with a seasoned monetization partner, like optAd360. While you are creating content, we (and our optAd360 AI Engine) take care of all vital monetization aspects, from creating a profitable ad layout with Ad Mapper, through adjusting the already existing one with Revenue Booster, to taking care of ad units that otherwise would not be sold with the Recovery Tool – and much, much more! The result? Higher earnings and more time for what matters – creating great content;
• Another advantage of programmatic is the fact that it can “grow” along with the publisher, meaning that as the publisher’s audience expands and/or inventory increases, the programmatic system can help increase ad revenue without the need to increase workload. This is mainly due to automation, real-time optimization, and data-driven targeting;
• With programmatic, publishers reach a wider pool of advertisers, which leads to better chances of selling inventory and keeping ad fill rates high;
• What’s more, programmatic makes life easier for everyone, not just publishers, by reducing the chance of human error. When you let smart tech handle the process, everything tends to move faster and more accurately.

Types of programmatic ads

There are many types of ad formats. Each of them acts and looks different and might be implemented for different reasons. A proven practice for finding the best ad formats for your content is to understand the pros and cons of each format type, consider User Experience, and match the format to the content type. Additionally, a common and recommended practice is running A/B tests in different ad placements and formats, and later, monitoring the results and acting accordingly. Take a look at the most widely used ad formats:

• Banner ads are rectangular in shape and are one of the most popular and easiest to implement ad types;
• Native ads are designed to blend seamlessly with the surrounding content. However, it’s crucial to know that they should be clearly labeled as advertisements; otherwise, they may be misleading to users;
• Interstitial ads are full-screen ads most often used to monetize apps. They should appear in a way that doesn’t disturb the natural user flow;
• Rich media ads are a step ahead of traditional ads. They might be animated or in the form of a video or a responsive game. All that to engage the user to the maximum;
• Rewarded ads are a popular ad format for mobile apps. It’s worth viewing it as a form of transaction where both sides benefit, and publishers can monetize their app, while the user receives tangible rewards such as extra time or valuable items in the game. A popular subtype of Rewarded ads is playable ads;
• Audio ads are ads that are served through various channels, like online radio and streaming services. They often appear during podcasts, which are listened to by an increasing number of people each year, and are an effective way to advertise products and services.

All you need to know about ad fraud

Let’s begin with the definition of ad fraud. It’s a way for cybercriminals to trick ad systems, fool advertisers, and steal money from them. There are many tactics that usually involve inflating the click count with bots or tricking real users. The sad truth about ad fraud is that it affects the entire digital advertising ecosystem, and many publishers may also suffer as a result. Interestingly, most ad fraudsters don’t want to ruin the whole ad ecosystem; they need it to thrive and profit from it, but the consequences of their actions are often dire. When it comes to publishers, they should understand the importance of this subject to protect their revenue, relationships with advertisers and audience, and to safeguard their reputation. Here are more insights: examples of ad fraud and tactics on how to generally fight it, as a publisher:

• Ad injection is the practice of placing unwanted ads on a publisher’s site or on places like search result pages. They are injected via malicious software that users can install while downloading a browser extension or some other files, and the author of it gets paid when those ads are displayed or clicked. That’s one of the reasons why users should download software only from trusted sources. This kind of ad often appears as a pop-up ad, robbing publishers of their ad revenue and destroying the User Experience. Interestingly, ad injection can also happen on sites that don’t monetize with ads;
• Hidden ads are used to artificially inflate ad impressions by various tactics like pixel stuffing and ad stacking. In the first case, a fraudster hides an ad in an area (in most cases) too small for the user to notice. In the second one, he layers ads on top of each other to hide them from the user’s view and maximize fraudulent ad earnings;
• Domain spoofing is a phishing technique that occurs when cybercriminals forge a URL or domain name in order to take advantage of users. It’s worth noting that the main aim of phishing is to obtain sensitive information and/or earn ad revenue. Attackers utilizing domain spoofing may distribute fake links via email, text, ads, or web pages to drive traffic to the fraudulent site;
• Click flooding (also known as click spamming) is another type of ad fraud and happens when automated tools generate massive amounts of fake ad clicks;
• Ad verification is an effective process that ensures that ads are properly delivered, seen by real people (if you’re interested in knowing more, check out our article on ad viewability), and free from fraudulent activity;
• Brand safety is yet another term with which publishers should be familiar. It helps to protect a company’s image by avoiding sketchy or inappropriate online content when placing ads. In order to achieve a safe ad environment, both publishers and advertisers need to work together.

The best way to increase ad revenue as a small publisher

The most effective way for small publishers to generate good revenue from their content is to partner with a reputable monetization provider. A good one will not only connect you to top-notch ad demand but also provide you with the latest ad tech to help you succeed. Not to brag, but – we happen to be one of them! And all you need to get started is to read our requirements and fill in the registration form!