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Dynamic, fast, effective: Realtime Advertising with Programmatic Advertising

Data-optimized advertising space, bought in realtime and played fully automatically: This is what Programmatic Advertising offers. Once misjudged as a niche technology, this type of advertising is now enjoying growing popularity. And rightly so: advertisers benefit from maximum flexibility in the target group-specific display of advertising media. This article reveals what added value the technology also offers and what role an optimal database plays in this.

posted by Roman Oncsak

Gezielte Werbung mit Programmatic Adverstising

How does Programmatic Advertising work?

Programmatic Advertising is the standardized, automated and data-based trading of digital advertising space that is sold and played in milliseconds. Advertisers can address potential customers in a data-based and personalized way along the entire customer journey – via various end devices such as PCs, smartphones or TVs and regardless of whether they use banner, video or audio communication.

To this end, providers of advertising space and advertisers come together on a comprehensive advertising marketplace where advertising space is traded in real time Advertisers usually use a so-called demand-side platform (DSP), while providers use a supply-side platform (SSP). This means that the moment a user sees an ad on a website, for example, an auction takes place in the background: Advertisers place their bids in order to play out their ads to the right target group at the right moment.

The entire process, from bidding to placement and delivery of the ad, is fully automated. To maintain control over the budget, advertisers can define it in advance. At the same time, they are able to view the performance of the ads at any time and react to changes in real time if necessary. This makes playout much more efficient and flexible.

Programmatic Advertising at/with OTTO

Programmatic Advertising was initially only used for classic banner marketing on websites and was initially considered a niche technology. Similar to other marketing channels, the booking process was predominantly manual and required long planning phases. Prices were usually pre-negotiated. However, due to the significant advantages for advertisers and providers of advertising inventory, the technology has now established itself as a growing advertising category.

At OTTO, we recognized the potential of programmatic advertising early on and have invested heavily in programmatic technologies in recent years. By cooperating with numerous digital marketers in Germany, we can target the areas with the widest reach. We use our own supply-side platform to access inventories via header bidding. This is a technical integration that enables us to buy high-quality advertising inventory at very competitive conditions.

We also use in-house technologies in other important disciplines, such as campaign management or in the area of data-based and personalized advertising media (Dynamic Creative Optimization – DCO). As Germany’s largest retail media provider, we also use these technologies for our advertising customers to target their campaigns – on digital billboards, on websites, in smartphone apps and, of course, on OTTO itself.

First-party data

First-party data is a company’s own data that is collected, for example, through its own website or app. Anonymized customer information such as age, gender or surfing behavior is considered particularly reliable because it is provided by users themselves or can be derived from their behavior on the site with their consent. In the case of a marketplace such as OTTO, for example, it tracks which products users have looked at and how far along they are in the purchasing process – for example, whether an item is already in the shopping cart.

Data as the key to efficient playout

The basis for targeting programmatic campaigns is data – especially first-party data that users or customers disclose on OTTO with their explicit consent.

This includes, for example, information on demographics or user behavior on the platform. This particularly reliable data enables us to ensure that advertising content always reaches (potential) customers at the right time in the purchasing decision process.

Programmatic advertising – the future of personalized advertising

Due to the dynamic and precise playout, the value of programmatic forms of advertising is obvious. At OTTO, we have daily updated first-party data from over 31 million active user accounts as well as many years of expertise in the field of programmatic advertising solutions. By analyzing first-party data, advertisers can position their brands and products in an even more targeted way. We are constantly developing our proven technologies – for even more visibility along the entire marketing funnel.

Would you like to use Programmatic Advertising for your advertising success? Our experts at OTTO Advertising will be happy to advise you.

About the author Roman Oncsak

Roman Oncsak has been with OTTO since December 2022. His responsibilities include communications consulting for the Technology department and its Executive Board, as well as editorial work for all external channels, where he is the "last text instance" to apply the digital red pen. Previously, Roman was active as a communications consultant and editor in the Hamburg agency world and most recently was responsible for the international communications of the European B2B platform provider Visable as Senior Corporate Communications Manager. Notoriously hobby-less by his own admission, Roman spends his time on hobby-related activities such as cooking, reading, music and pop culture. He lives in Eimsbüttel.

Roman Oncsak
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