Surely you have heard on occasion about the programmatic advertising or read some news about how a company has managed to reduce advertising spending using programmatic advertising. But what is programmatic advertising?
What is programmatic advertising
As you can well imagine, it is a process by which to advertise in the media digital such as websites, apps, but also in other media such as connected television and urban media (known as pdooh) such as, for example, the screens on bus shelters.
Currently 90% of display advertising in the US is programmatic, while in the UK and Germany it is between 60% and 70%. And in Spain? The level of programmatic development in Spain is still below 40%. This means that It will be one of the great areas of growth in our country in the coming years.
The programmatic ecosystem is huge, encompassing a large number of technologies and companies. To begin to understand it, we must take into account that there are platforms for those who buy ads (advertisers), these are the DSP and platforms for those who sell them (publishers), SSP. Both sides of the market must also use an ad server to host creatives, among other functions. Both the supply and demand side cross their bids on the ad exchange.
I’ll explain a little more about the advertiser side
The DSP (Demand Side Platform) launch advertising purchase orders in real time. There are many possibilities to configure advertising campaigns, so you will have the ability to optimize them more and more to improve their profitability and impact your target audience, with the exact number of ads that your brand needs.
What are the main DSPs?
How could it be otherwise, the leader in programmatic belongs to Google. The tool is called Display & Video 360, known as DV360 and is part of the Google Marketing Platform (GMP) environment.
Beyond the universe of the company (Google), the main platforms are Xander, Adform, MediaMath Y Amazon DSP, among many others.
Main advantages of programmatic advertising
These platforms provide many advantages when it comes to configuring and optimizing advertising campaigns, I will tell you which are the main ones in a very summarized way.
- hyper-segmentationthat is, greater capacity of .
- Allows you to set the frequency with which you want to show your ads per user and you can choose between the options of minutes, hours, days, weeks and months. Quite an advantage to optimize budgets, avoiding “bombing” users, tiring them with an excess of ads that will surely produce a bad image for the advertised brand.
- Automation and real time (milliseconds).
- Safer for the advertiser’s brand, Programmatic technologies prevent brand ads from appearing where they shouldn’t.
- Almost unlimited inventory of advertising spaces for a greater reach. In addition to the Google network, there are many others. You should know that many publishers put their advertising space on other networks. From a DSP you have access to a large number of inventories.
It is also common for large publishers to put their inventory across multiple ad networks to optimize revenue. Similarly, large advertisers often use multiple DSPs. In addition, you can access Connected TV and PDooh (programmatic digital out of home, that is, urban screens such as billboards and MUPIs) from specialized platforms. - audiences are acquired instead of advertising space. Although you can also hire specific spaces in publishers and/or specific websites.
- Different forms of purchase: Programmatic Guaranteed, Preferred Trades, Private Auction, and Open Auction. Guaranteed ads are shown first, as they have preference over the rest, and open auction last.
- Transparency.
- Control.
How to advertise programmatically
DSPs are platforms that are very advanced and usually have quite high prices, which is why it is recommended for most companies to access them through advertising agencies specialized in programmatic. I’ll give you some names to keep track of. Three large international groups are Dentsu, IPG, Havas, OMG, Publicis Groupe and WPP, each of which has many specialized advertising companies and there are many more. On the Skiller website you can read who the award winners are (reference in Spain).
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