Are you looking for new ways to advertise your business? The in media, it is the most powerful tool in modern marketing. The fast pace of information and the need to be faster and more efficient with the resources we have has led to the emergence of new digital advertising models, including programmatic buying.
Does this concept or way of advertising sound familiar to you?
If you are not familiar with this concept or simply have not worked with it, do not worry, in this post we will explain what programmatic advertising is and how to buy this type of advertising.
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What is programmatic advertising?
Every time you enter a website and accept the so-called “cookies”, you are automatically accepting the recording of certain browsing parameters. Programmatic algorithm technology uses this trace and combines it with marketing strategies to offer you personalized advertising according to your consumption trends. In this way, businesses and entrepreneurs can buy audiences to offer their ads to a specific audience. This is what we know as programmatic advertising.
Did you know this way of advertising?
Programmatic advertising or programmatic buying is a term that refers to the automated purchase of advertising space on the Internet and is marketed through an automatic procedure for the purchase/sale of advertising. In this stand out the auctions or bids made in real time (RTB or Real Time Bidding).
In the programmatic advertising buying process, advertisers buy “people” instead of advertising space.
This type of advertising is a very smart way to publicize a certain product or service online, because the entrepreneur pays so that their ads are shown only to their target audience, at the right time and place.
Advantages of buying programmatic
The main value of programmatic advertising is that, unlike other advertising practices, technology – specifically the – makes it possible to detect that a specific person has a real interest in receiving a certain advertisement.
When you invest in programmatic advertising, your ads reach only one person who considers your product or service relevant, thus avoiding wasting money on invasive or out-of-context advertising. In addition, with this type of advertising, the conversion rates per click on the ad are higher, which means that you will be able to obtain higher quality traffic and sell in a much more optimized way.
Another interesting advantage of programmatic advertising is that it allows the possibility of personalizing the ads, you can configure different versions of ads, which will be shown according to the profile of the audience and the context in which they are found.
All this has numerous advantages as opposed to traditional models of paid online advertising, more and more entrepreneurs or digital business leaders are betting on this practice to sell more and make themselves known on the Internet.
Some other advantages that we can highlight of buying programmatic advertising could be:
- Programmatic advertising targets a segment, your brand will reach only those who are interested thanks to the algorithm that takes into account various aspects of the user’s online behavior.
- With programmatic advertising, all the processes and the different actors of digital advertising such as advertisers, agencies, etc. they are brought together in a single channel that is much more automated and simple, helping you save time and money.
- Thanks to the purchase of programmatic advertising, you can reach many more digital media, bringing together different segments of interested customers and reaching them en masse, optimizing prices and increasing the possibilities of measuring conversations “in situ”
- It’s a very efficient way to buy ads, as there is less human intervention involved and more opportunities to leverage real-time data.
Types of programmatic advertising
There are different types of programmatic advertising, among them we can mention some such as:
Direct or guaranteed programmatic advertising
Direct programmatic is based on the direct contracting of advertising services, these services are contracted through a platform with a single medium or support. In other words, the entrepreneur chooses where he wants his ad to appear and what type of audience he wants to target.
This type of programmatic advertising gives the entrepreneur more freedom to choose the direction of their campaigns and control each euro invested. It can be very useful to promote a specific product that is not interested in being advertised in certain media or websites.
Real Time Bidding
Real Time Budding or RTB is a type of programmatic advertising in which agents bid for ad space in real time by limiting ad impressions to users who are most likely to click on them. With this type of programmatic, the entrepreneur can only impact users with certain attributes thanks to the cookies that collect user data.
How does programmatic work?
Before trying to dive deep and start looking in detail at how programmatic works, it is important to be very clear about the following terms that you should add to your :
Advertiser
An advertiser is the agent interested in the dissemination of advertising in the media. Suppose you have a digital startup and you want to invest in scheduled online ads; so in this case, you would be the advertiser.
The advertiser is the one who determines the total budget of the campaign, defines the target audience and provides the creative materials. In addition, he is the one who stipulates the minimum and maximum bid price that he is willing to pay.
media agency
A is a buying agent of advertising space for an advertiser. It is in charge of giving support to the advertiser and managing their RTB campaigns and intermediating in the purchase of traffic for advertisers.
The media agency is a very important ally for entrepreneurs who wish to invest in this type of advertising, because it is responsible for achieving the expected objectives and has the budget assigned to invest in those DSPs that it considers appropriate for success.
Trading Desk
It is the technical team of people in charge of optimizing the programmatic purchase of different advertisers connecting with multiple DSPs. A Trading Desk can be part of a media agency or it can be an independent company.
In general, Trading Desk’s work is focused on getting advertisers to make smart purchases through optimization technologies such as AdExchanges, networks, DSPs, supports, etc.
DSP (Demand Side Platform)
A demand platform is a bidding technology available to media agencies that allows them to buy inventory on different AdExchanges. These platforms bid on inventory using Big Data, so that the purchase is made print by print and in real time.
ad exchange
In the world of online advertising, the AdExchange is an online platform where advertisers and publishers get in touch.
On this platform, publishers offer and manage their advertising spaces and advertisers create and manage their campaigns.
supports
The supports are those that offer their advertising spaces.
SSP or Supply Side Platform
They are technological platforms in which advertising media and networks optimize the performance of their inventory automatically. Through these platforms, they can access the multiple sources or demand aggregates that exist automatically.
DMPs (Data Management Platform)
It is that platform in which audience data from any source is collected, integrated and managed.
Now that we are clear about these basic programmatic advertising terms, it will be much easier to understand how they work.
This is how programmatic advertising works
- An advertiser contacts a media agency to incorporate programmatic advertising into their digital strategy.
- The media agency details the advertiser’s needs and budget to the Trading Desk team, the latter can be part of the agency or also a separate company.
- The Trading Desk team reflects the request in DSP technology, the virtual space in which advertisers specify which formats they want for their ads and what their investment is.
- In turn, this team also defines the audience of interest to the advertiser on the DMPs platform. Thanks to the power of Big Data, this platform is responsible for digitally marking people who are part of an audience of interest.
- On the other hand, media does the same thing on the SSP platform and displays the inventory of all available ad slots.
- All this is connected to the AD Exchanges, where the SSP technology will have exposed the spaces that the supports have available and there the automated bidding takes place, which can be in real time (RTB) or not.
- The programmatic buying process culminates with the Ad Server technology kicking in, helping advertisers and agencies get their ads displayed to users in seconds.
How to buy programmatic advertising?
The purchase of programmatic advertising is based on Big Data. In order for you to benefit from this type of advertising, you must buy real-time advertising through RTB (Real Time Bidding) digital bids.
There are different platforms that serve as intermediaries between advertisers and space sellers, some may be:
- Ad Exchanges or Marketplaces, where digital auctions are held.
- Demand Side Platforms, manage to optimize the price through large amounts of user data (Big Data).
- Data Partners, provide this data.
- Trading Desk, they work for the advertiser in the auctions.
- Sell Side Platforms, maximize advertising spaces for the media.
So, let’s say you want to buy programmatically to promote your products to women between the ages of 20 and 25, who have visited your website without making a purchase.
To start, you need to hire a media agency, which will basically be in charge of choosing which other websites should show your ads on, with the intention of capturing the interest of that target. Then, the automatic bidding will take place in real time and what will happen then is that the user will be browsing any website and will see advertising related to both their interests and the queries they have recently been making on the page of the brand they likes and those users who meet the interests previously established by you and the media agency will see your ads.
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