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What is programmatic advertising and why should I implement it in my strategy?

04 Oct 2022. 10:32
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Your potential customers receive thousands of ad impacts daily, so it is crucial to show them advertisements that can really interest them. Programmatic advertising is the key to achieve this, here's why!

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We live in a hyperconnected world, in which we receive around 6.000 impacts per day, according to a study by Neuromedia. With the vast amount of advertising impacts we receive every day, awakening interest in our target audience can be quite complicated. However, there are certain tools, strategies and technologies that allow us to reach audiences that have behaviours and interests aligned with our brand or product. We are talking about programmatic advertising!

For many, programmatic advertising is the next big thing in online advertising. In fact, more and more companies are betting on this technology to reach their target audience, thus optimizing campaigns and, in addition, measuring their effectiveness thanks to the data we can obtain from this type of advertising. In this post we will explain what programmatic advertising is, why you should implement it and how to do it. Keep reading!

 

What is programmatic advertising?

Programmatic advertising, or programmatic ad buying, is a new online advertising model that uses technologies such as big data and machine learning so that, in a fully automatic way, you can impact only your target audience.

This new model has completely changed the digital advertising landscape. According to IAB data, 85% of advertisers already use programmatic advertising and, in addition, according to a study by eMarketer, this year investment in this model will increase by 16.3%, maintaining the growth trend for the fifth consecutive year.

 

How does programmatic advertising work?

You should know that there are different types of programmatic advertising, but they all work in a similar way. In this post we are going to give you a little insight into the diverse process of this type of advertising to help you understand it better.

Programmatic advertising buying is executed through platforms that aggregate different digital media, known by the name of Demand Side Platform or DSP. These platforms work with technologies such as machine learning that make algorithms analyse user behaviour. In this way, ads are displayed in the advertising spaces of digital media depending on the characteristics of users who are browsing them at that time.

For this to work correctly and so that we can direct campaigns to audiences with a higher probability of conversion, we must tell the program which profiles we want to impact and how much budget we have to present the ad to that audience.

It is important to emphasize that all this happens in real time thanks to processes such as Real Time Bidding (RTB).  As soon as the user accesses a website, all these processes are carried out in milliseconds so that when the page finishes loading, the ads are already fixed.

 

What is the difference between programmatic and online advertising?

Programmatic advertising could be considered an evolution of online advertising. They are both very similar, but there is a key difference that distinguishes them. In online advertising, you only buy the media's advertising space and present your ads regardless of the user's profile. Programmatic, on the other hand, buys audiences that are related to your brand, thus increasing metrics such as ad CTR.

 

Why should I use programmatic ad buying?

In e-commerce it is important to optimize processes and even more important to optimize investments. Programmatic advertising can help you do both.

Programmatic ad buying has countless advantages. Here is a summary of some of them:

  • Improved efficiency. Everything is automated, eliminating intermediaries that can delay the process.
  • Increased user interest. By presenting interesting ads to your target audience, the generalized rejection of online advertising is drastically reduced.
  • Increased conversion rate. Related to the previous advantage, users are more likely to click because they have a real interest in your products.
  • More media. You have access to a large number of digital media such as websites, blogs or even social networks in which to implement your ads in all kinds of formats.
  • Better analysis. Programmatic advertising platforms share all campaign data so that you, as an advertiser, can optimize them in the best possible way.
  • Better retargeting. Re-targeting users who have been to your e-commerce is much easier.

As we have mentioned before, programmatic advertising is the future of online advertising and, although it is a much more complex format, its advantages make it worthwhile. Are you ready to integrate it into your online strategy?

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