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Programmatic advertising: what is it and what are its advantages?

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Programmatic advertising consists of the use of an automated online advertising buying system, i.e. it is an advertising buying model.

This type of advertising uses software to buy advertising that will be shown in real time, to a specific client and in a specific space. It consists of offering the user an ad adapted to their tastes and needs at the right time, thanks to the use of new technologies.

You may be a bit lost right now, but don't worry, we will solve all your doubts about this type of advertising in this post.

But first, how does programmatic advertising work?

As you well know, technologies evolve and with them new ways of creating and distributing ads arise. That is why programmatic advertising arises, which is nothing more than a type of online advertising. The main difference of this type is that it is done in an automated way.

The purchase of this advertising is done through an automatic procedure of buying/selling in auctions or bids in real time (real time bidding or RTB) and the use of big data. In this process you do not buy advertising space as in the traditional way, but you buy people. In other words, you pay for your ad to be shown where you want it to be shown and only to your target audience .

This makes pragmatic advertising a smart way to advertise online, as you show yourself to potential customers at the right time and in the right place.

And you may be wondering, how is this possible? Because programmatic advertising works through algorithms.

Cookies are used to collect browsing data that help companies to segment the audience. All the browsing data is stored, so that user behaviour can be predicted.

So when you create your ad you choose, in real time, to which audience you want your advertising to be shown, making a segmentation for example, by their interests, age, place of residence, by the type of device they use or at what time they usually browse, among others.

In this type of advertising, you not only segment by the consumer's tastes, you can also choose the time and frequency at which the advertisement is shown, and because it is based on a bidding system, you choose what you are willing to pay to show the advertisements.

what are the advantages of programmatic advertising?

If we compare this type of advertising with other more traditional types of advertising, this has been a great innovation for companies, as it allows them to offer more specific online advertising to the user for a lower cost and greater benefit. Some of the advantages are:

  1. Segmentation: We can segment users thanks to big data, which allows us to know specific data about their online behaviour. Thanks to this information we can reach our target audience.
    Segmentation will not only make it easier for you to show your advert, it also helps to have a better communication between the company and the user, as you can create several types of advert with differences according to the tastes of your clients, being able to show a more specific message that will attract their attention.
  1. Reach: It is obvious that the Internet allows us to reach any user in the world who is on the network. As an advertiser, the Internet gives you access to a large advertising space on thousands of websites at once. In addition, you can do it in different media and channels in any geographical location. And unlike traditional advertising, for a more affordable price.
  2. Better rates: The use of targeting, algorithms and the ability to make changes in real time means that the conversion rate per click increases, as programmatic advertising gives you higher quality traffic, because remember, you are where your customer is.
  3. Automation: Programmatic advertising, like many processes within digital marketing, is done in an automated way. Once you create your ad, or ads, and you have the whole process done, it is already through different platforms that are responsible for distributing it across the network. This translates into simplifying the work and saving time.

This is just an example of the advantages of this type of advertising, as everything also has some disadvantages, for example, it has a higher cost than display advertising, because the impressions are more expensive. And although the segmentation through algorithms is effective, it is not always positive. This means that your ad is shown in unwanted places. It does not always happen, but you have to take it into account.

In conclusion, programmatic advertising can help you to get better results from your ads. As the marketer you want to be, you know that reaching your customers at the right time is key, that's why this type of advertising is in your interest.

Nowadays, programmatic advertising is a different way to bring your brand closer to users who are potentially interested in you. One of the biggest benefits is the time savings it brings. But as always, consider all the options and remember that combining different forms of advertising can be a good option.

If you are interested in finding out more about this topic, we leave you this link so that you can continue investigating the subject. We hope that this reading has helped you to resolve your doubts .

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