Programmatic advertising is the future of digital advertising because it allows to shows ads only to users who are really interested in them, by favouring advertisers to optimize their budget and be more effective in impacting their target audience nothing intrusive way. Do you want to know more about this kind of advertising? Keep reading!
What is Programmatic Advertising?
Programmatic advertising is a type of digital advertising that is based on Big Data, where advertisers buy audiences and not spaces as in traditional advertising, in order to segment the audience properly and to show their ads to people who are really interested in them. Therefore, programmatic advertising allows advertisers to connect with their target audience at the time and place most suitable.
One of the advantages of programmatic advertising is the personalization of advertisements, since you can design different versions of a product, depending on the profile of the audience and the context in which you are.
This system uses algorithms that determine the matches between the spaces which are available in the different digital media and the profile of the audience that advertisers are looking for.
For example, a mobile brand could be interested in impacting on a 35-year-old woman from Manchester, interested in new technologies, to show her the launch of her latest mobile device.
The programmatic purchase is made in real time through digital bids in specialized platforms that offer impressions to get the ad as effective as possible, so that in this way the expenses and resources are optimized efficiently.
This process takes place in a few seconds. When a user loads a website that has advertising spaces, information about that user is immediately collected to show him in one of those available spaces, an ad that fits to its buying interests. In order to impact this user, the advertiser must have previously participated in an auction and become the highest bidder.
Elements involved in the Programmatic Buying
In the process of programmatic buying, there are different elements that you must know:
- Ad Exchanges or Marketplaces: these are the platforms that act as intermediaries between media buyers and space sellers, and where digital auctions are carried out in real time.
- Ad Server: is a software that allows to issue or serve a set of advertisements within the advertising spaces of the different websites.
- Demand Side Platforms (DSPs): they are the providers of the technology. They work with an internal algorithm that is responsible for finding the cheapest prints for the advertiser’s banners every second, within the same platform where all the available inventory of several intermediaries is located.
- Datas Partners: they are those who provide the data.
- Trading Desk: they are teams of people who work for the advertiser at auctions.
- Sell Side Platforms: they are platforms that automate the commercial management of digital media so that publishers obtain the greatest possible benefit by serving banners from advertisers interested in their users.
Now that you know how programmatic advertising works, you can carry out your digital advertising campaigns or if you have a website with a high traffic and you want to monetize it, you can become programmatic server.
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