What is Programmatic Advertising? This broad concept involves various areas of the digital advertising field, such as AdTech platforms, media buying methods, and even advertising media and channels.
What is Programmatic Advertising?
It consists of a process that allows you to automate the purchase, sale, delivery, and measurement of the effectiveness of a digital advertising campaign through ad technology platforms known as AdTech.
An AdTech facilitates the optimization of advertising campaigns with minimal human involvement, creating and executing them, without agencies, publishers and advertisers having to influence the process.
How Does Programmatic Advertising Work?
The mechanics of programmatic ad buying can be divided into four main parts: ad targeting, media buying, tracking, measurement, and reporting.
• Ad targeting methods, can be done by the following procedures:
- Contextual targeting: allows advertisers to display relevant ads based on a website’s content.
- Through behavioral targeting methods, also known as online behavioral advertising (OBA), allows advertisers to show relevant ads to users based on their interests and web browsing behavior.
- Demographic targeting: allows advertisers to show ads to users based on demographic information such as their age and gender.
• Programmatic media buying methods
There are a few ways that advertisers can buy inventory from publishers. These are real-time direct programmatic bidding (RTB) and private market (PMP).
• Follow-up
A follow-up is the action you perform after your original pitch, with the objective of encouraging the prospective client to take action. In the programmatic advertising framework, you can design ads that work as a follow-up of an action that the prospective client has not completed yet. For example, reminding the user about products left on the shopping cart or items visited on an e-commerce site.
What are the Programmatic Advertising Platforms?
There are two types of programmatic advertising platforms:
Supply-Side Platform (SSP)
SSP is an ad technology platform that publishers use to manage, sell, and optimize their inventory, which is ad space. A Supply-Side Platform allows publishers to monetize their website and mobile apps by displaying ads that will be shown to their visitors while they are using the app or visiting the website.
Technology has allowed SSP providers to acquire the ability to exchange their platforms, and publishers can connect directly to DSPs.
Demand-Side Platform (DSP)
DSP is an ad technology platform that makes it easy for agencies and advertisers to purchase different types of ad space inventory from multiple publishers from a single interface.
Benefits of Programmatic Advertising
Some members of the digital advertising field have expressed their concern regarding the massive collection of user data, especially because they believe that this has hindered the success and evolution of programmatic advertising.
This is caused by the development of ad blockers, privacy laws, and the privacy settings of web browsers, making it difficult to work properly.
Another concern is the lack of transparency about fees and the accuracy of user data when using an AdTech.
However, not everything is bad. Programmatic advertising has allowed publishers to monetize their mobile apps and websites and reach their target audience on a much larger scale than traditional media. Let’s see some benefits:
Increased Reach
Programmatic advertising increases the reach of a product or service to the target audience, notifying new users, those who have abandoned, and those who return, as well as the causes of it.
Transparency
Transparency in programmatic advertising is a concern for many, but marketers who are satisfied with their ROI are focused on scaling their app marketing efforts.
Programmatic advertising is more about getting higher volume without sacrificing your ROI, and this type of advertising helps them achieve larger scale goals.
Targeting Beyond CTR
You can purchase a publisher’s inventory: Real-time direct programmatic bidding (RTB) and private marketplace (PMP). That can determine the target sought.
In direct or guaranteed RTB, advertisers buy inventory directly from publishers through ad servers and ad networks, using AdTech platforms in an efficient and automated way.
PMP is the way publishers sell all kinds of remaining inventory to advertisers, including premium inventory, but unlike RTB, the sale is done by real-time auctions.
Real-Time Data Insights and Reporting
AdTech platforms have a reporting feature that immediately displays metrics about the various stages of a campaign.
Thanks to these reports, publishers and advertisers will have valuable information about the success of the campaigns, the times an ad was seen and the clicks it received.
Relevance
This refers to the relevance in terms of metrics, which represents the number that is associated with the performance that an advertising campaign has shown to have.
How Much Does Programmatic Advertising Cost?
The cost could be between $0.50 and $2 CPM, on average, which is a cost benefit when compared to what it would cost for a human-driven digital marketing process, that averages $10 or more.
Programmatic advertising helps advertisers by lowering the cost of advertising and increasing the exposure of their product or service for the same money.
Conclusions
Finally, the answer to what is Programmatic Advertising is found in the use of AdTech that will do all the work that is required to make a service or product visible to a target audience, using the channels provided by the internet.
This, without the need to use human labor in most of the stages, guarantees faster, more direct and effective results, with a simple technological interaction between the agencies that have inventories of advertising space and the advertisers.
