Introduction
Social media websites have revolutionised advertising by introducing a new paradigm that interacts with the consumers directly. In itself, social media allows businesses to reach consumers based on their preferences and immediate needs. However, the most critical aspect of this platform is the customer targeting programs that are usually done, where users are provided with products based on their setting and browser history. This outcome is now a common phenomenon notwithstanding the previous targeting methods that followed the user’s ‘Likes’. In this context, the ‘Likes’ refers to the buttons used on social media sites such as Facebook where a user will show his/her sentiments based on the given criteria. Now, in the past, these buttons were hosted on various websites and when used would serve as a preference setting while using the social media site. Today, this process has gone a notch higher to include retargeting methods that will use customer’s browser history and settings to promote products and services on social media sites. This process is achieved using ad exchange systems and affixing tracking Softwares as discussed below.
Ad exchange
This method of advertising follows the spaces provided by the multiple online publishers who provide space inventory to advertisers based on an automatic bid system. This method replaces the traditional method of negotiating for space based on a one-on-one interaction. In essence, companies such as social media sites (e.g. Facebook) will avail space on their platforms which other companies will automatically bid for based on programmatic advertising method that is supplied by DSPs (Demand Side Platform). Now, programmatic advertising is just a simple way of describing Software driven technologies that automate the ad-buying processes.
Programmatic advertising: Two factors have led to the popularity of programmatic functionalities; one, its automated activities that speed up the process of buying and selling ads and two, the targeting relevance. The targeting relevance is usually accomplished using large data (Big data and business intelligence) sourced from multiple platforms used by users. Furthermore, this data will outline the user’s behaviour, demographic and preferences. So, where does the data come from? The data is harvested from websites and applications using tools such as cookies as well as other identifiers such as User Login details. This information is then used to tailor the ads.
Demand Side Platform: Advertisers e.g. Laptop selling companies, usually connect to ad exchange using DSP who provide the link between the advertising space and the advertisers. Examples of DSP include MediaMath, Turn and AppNexus among many others. Now, using the ad exchange, advertisers will target their audience based on certain behaviours as exhibited by their browsing activities. This outcome will enable a company to place an ad on a social media site (e.g. Facebook) of a user, just after browsing it in a search engine.
Affixing tracking software
Consider Facebook, a popular social media site that for a long time has used FBX as its ad exchange. Now, because of this application, it has had to deal with DSP (e.g. Turn) to help businesses target their audience. However, a better and more efficient method is slowly being introduced into the market, that of affixing tracking Softwares into the marketer’s web sites thus avail the same preferences to users when they connect to their social media platforms. This method will also guarantee the marketing process as the previous method (ad exchange) relied on desktop feeds and ads placed on the right rails. In comparison, affixing Softwares will automatically use the customer’s data such as email, location and contact number to avail ads on their social media sites. Moreover, this method will make mobile inventory available to marketers and users alike.
Conclusion
Advertising like any other aspect of business, has used the conveniences offered by the digital medium to their advantage. Today, marketers can reach customers directly based on the advertising systems presented by information technology, which cuts out the sales middlemen who in the past sold advert space. Consider the first option, ad exchange, where automatic algorithms source users’ data based on their preferences, demographic and behaviour through their browsing activities. This information is relayed through DSPs who connect advertising agencies and companies to ad platforms. Now, it is through such processes that users experience the same content across different online platforms, for instance, customers will see a products previously searched on their social media account. Furthermore, this process is now intensified by the affixing tracking Softwares that aim to directly harvest users’ information through their online presence. Therefore, an advertiser will affix the programs in their website and through these applications will connect to the user’s social media accounts thus provide the same content in them, an efficient and controversial outcome.
References
Delo. C, Facebook launches new retargeting alternative to FBX, Ad age, 2013, Available at: https://adage.com/article/digital/facebook-launches-retargeting-alternative-fbx/244746/ [Accessed 15 August, 2017]
Delo. C, Facebook to Use Web Browsing History For Ad Targeting, Advertising Age, 2014, Available from: https://adage.com/article/digital/facebook-web-browsing-history-ad-targeting/293656/ [Accessed 15 August, 2017]
Graham. K, Programmatic advertising for dummies: key terms, examples and trends explained, Monetize more, 2017, Available at: https://www.monetizemore.com/blog/programmatic-advertising-explained/ [Accessed 15 August, 2017]
Marvin. G, Martech Landscape: What Is An Ad Exchange? Martech Today, 2016, Available at: https://martechtoday.com/martech-landscape-what-is-an-ad-exchange-161947 [Accessed 15 August, 2017]
