What is programmatic advertising?

In recent years, new strategies are emerging to create advertising, one of them is programmatic advertising. This type of advertising is based on more personalized advertising, which works through a bidding system.

What is programmatic advertising?

The programmatic advertising It is a marketing specialty that in recent years has acquired increasing importance. Is based on the automation of the process of buying and selling display advertising.

That is to say, programmatic advertising could be defined as automated advertising, which connects brands and consumers, through advertisements that spark interest in the consumer.

Types of programmatic advertising

Within programmatic advertising, different types can be differentiated, depending on the characteristics, the main ones are two: on the one hand, the direct programmatic advertising, based on the direct advertising contracting using software or platform. This type allows the brand to acquire control of the campaigns, since it allows them to choose the place where the advertisement will appear and the audience to which it will be directed.

Secondly, it is possible to differentiate the Real Time Bidding or RTB. The objective of this type of programmatic advertising is to create an impact on a spectrum of users with characteristics that have previously been defined. Additionally, through this system, brands can bid for different advertising spaces, with the aim of directing your ad to the target of users who are most likely to click on it.

How does programmatic advertising work?

Programmatic advertising is based on the use of algorithms, through its use, coincidences between the attributes of the users and the definition of the target of the advertisers are detected. As well as, between the target audience of the brands and the available advertising spaces.

Programmatic advertising is based on a purchase and sale of advertising spaces through bids. For this reason, the offer of advertising space is sent to different advertisers, whose target audience is similar to the place where the space is located. For example, it would not be logical to send an offer of advertising space on a children's clothing website to a brand specialized in the sale of extreme sports equipment.

In this way, the different advertisers who have received the offer bid for the advertised space, with a minimum price already established. Therefore, the winner of the bid will be the one who publishes his ad in said advertising space.

What are the objectives of programmatic advertising?

When it comes to advertising, One of the objectives of programmatic advertising is to achieve an attractive image of the product and related to the characteristics and interests of the users. However, the main objective is the final sale of the product and, therefore, increased sales.

Advantages of programmatic advertising

Programmatic advertising has many advantages, compared to traditional advertising. That is one of the reasons that is helping its consolidation in recent years. First of all, the process automation, has meant great advances, since it does not require the human factor and it is enough for the advertising space provider to connect to an SSP platform.

On the other hand, it allows us to offer a more personalized content for users, since by deciding the attributes of the target audience, it is directed and personalized to the determined target. That is, it allows you to establish segmentation by users and the creation of personalized messages. Besides, programmatic advertising has greater reach, so it reaches more users and, therefore, can be very useful for achieving objectives.

Finally, programmatic advertising has a great advantage, and that is that it is a real time advertising and, therefore, can be modified at the moment.

Currently, many companies are opting for programmatic advertising to publicize your services and products. In this way, they achieve a greater reach that directly impacts their target audience.