ITM 350 Lecture Notes - Lecture 11: Comscore, Search Engine Marketing, Clickstream
28 May 2018
School
Department
Course
Professor
ITM 350 – Concepts of e-business
Case 4 Analysis
Programmatic Advertising: Real-Time Marketing (pages 409-412 of
the text book)
Key issues & Assumptions
Programmatic advertising is a way of marketing to a specific type of targeted audience
to show their advertisements. Its mostly based on demographics such as gender, social
standing, and age. You have the option to pick what publishers you want in order to
display your advertisements on. The chosen publishers will deliver the advertisements
to your targeted audience without wasting time and money. This also allows the
publisher to send specific messages to the right person/time. “Programmatic advertising
is an automated method that publishers use to sell their inventory (empty slots on their
Web pages) to advertisers who want to buy ad space for their customers (brand and
product owners looking to market their products and services). There are two kinds of
programmatic advertising: auction-based real time bidding (RTB), and programmatic
direct, where advertisers deal directly with publishers in a semi-automated
environment.” One of the key issues in this case is that there is a lot of risk involved for
all parties. Some advertisers forget and can’t manage all their ads. They end up losing
control over where their advertisements are being shown/viewed. This is a threat
because losing control and not knowing when their ads will appear on the web, can
cause damage to the brand reputation. The ads can be shown on inappropriate web
sites, and advertisers lose accountability for their expenses due to not knowing if their
ads are being shown or not. This leads to a transparency issue which involves ghost
sites (attracts clicks using ruses), and advertisement fraud.
Which leads to the second key issue fraud. Fraud, viewability, and trading practices all
occur in this case. It will generate fraudulent clicks that are paid by the advertisement
network and firm. Because of this risk, many advertisers do not use programmatic
advertising. Another issue is that a lot of companies find it hard to determine what to
provide for free to their consumers, and what they should charge the customers for.
“Companies also face challenges in terms of determining what products and/or services
to offer for free versus what to charge for (this may change over time), the cost of
supporting free customers, and how to price premium services (Laudon, C., & Traver,
2017). The company here needs to plan the outcome of each option and see what
option would make the most profit.
Relevance to course concepts
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Programmatic advertising: real-time marketing (pages 409-412 of the text book) Programmatic advertising is a way of marketing to a specific type of targeted audience to show their advertisements. Its mostly based on demographics such as gender, social standing, and age. This also allows the publisher to send specific messages to the right person/time. Programmatic advertising is an automated method that publishers use to sell their inventory (empty slots on their. Web pages) to advertisers who want to buy ad space for their customers (brand and product owners looking to market their products and services). Some advertisers forget and can"t manage all their ads. They end up losing control over where their advertisements are being shown/viewed. This is a threat because losing control and not knowing when their ads will appear on the web, can cause damage to the brand reputation.
