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What is programmatic adverting and how are we leveraging it to grow revenue? “Programmatic” ad buying typically refers to the use of software to automate the purchasing and placement of digital advertising (as opposed to the traditional buying process, which involves RFPs, human negotiations and manual insertion orders). Basically, it’s using machines to buy ads and target audiences. (Source – Digiday)

Programmatic ad buying has several advantages to traditional ad buying. Due to its automated nature, it’s more efficient, saving time and frustration. And thanks to its use of artificial intelligence, it’s often easier to reach the right audiences more quickly. However, a human touch is still necessary to troubleshoot and optimize the buys.

Programmatic Growth

US programmatic digital display ad spending grew 137.1% to eclipse $10 billion in 2014, accounting for 45% of the US digital display advertising market.

At Legacy, we provide multiple programmatic advertising options as well as a knowledgeable human touch. RTB (real-time bidding) is one type of programmatic ad buying we utilize. As its name suggests, RTB operates on an auction model. You set the maximum bid or (CPM) that you’ll pay for a placement and then win impressions at $0.01 more than the next-highest bidder. If “Advertiser A” bids $2.00 CPM and “Advertiser B” bids $1.50 CPM, for example, “Advertiser A” will win the impression at $1.51 CPM.

Another way to buy programmatically is through PMP, also known as Deal ID . Deal ID allows publishers to specify the types of inventory available to different types of advertisers. This allows for more control and one-to-one conversations for buyers who are looking to target inventory. Thanks to smarter targeting, this option often allows for higher yield. Oftentimes buyers are looking for specific first-party data from a publisher or specific sections of the site to target, and Deal ID delivers.

Programmatic software also allows advertisers to buy guaranteed ad impressions in advance from specific publisher sites. This is referred to as programmatic direct. Legacy.com is currently exploring this option and are planning to make it available to partners in later this year.

What does this mean for Legacy.com’s affiliates? Increased yield = increased revenue. Our programmatic revenue increased by 46% from Q1 2014 to Q1 2015. That’s a big jump, but we expect revenue growth to increase even further as programmatic continues expanding in the marketplace.