According to Outbrain, 87.7% of advertisers using digital advertising plan to spend on programmatic advertising. It is no longer simply a trend, but the reality of the environment in which we operate. How does programmatic advertising work, what advantages does it have over conventional display ads, and how can you use it with your brand? We’ll tell you right now! Do you want to know in-depth the benefits of Native Advertising? Click here and register for free to our complete training. What is programmatic advertising? How does it work and its advantages? How does programmatic advertising work? Programmatic advertising or programmatic advertising consists of the use of software algorithms in the purchase of digital advertising. Traditional online advertising systems involve a large amount of human intervention when requesting advertising space and negotiating prices. Now, this entire system is done automatically, saving time and resources and achieving more targeted and efficient ad placement.
The purchase of programmatic digital advertising is based on the use of Big Data and Real-Time Bidding (ad auction in real time). There are different actors that intervene in the process and that are between the media buyers and the sellers of advertising space: The ad exchanges or marketplaces, where the auctions are held. Platforms on the demand side (“demand side platforms”), which optimize prices using big data referred to users. The data partners (“data partners”), who provide this data. The Guatemala Phone Numbers List trading desks, which collaborate with the advertiser during the auctions. Supply-side platforms, which maximize the advertising space available to the media. Advantages of programmatic advertising It targets people, not advertising space. Unlike conventional display advertising, programmatic advertising allows us to target each user based on their profile and behaviors, making ads much more relevant to them. Allows you to go further in personalization.
With programmatic advertising we can create different versions of the same ad that respond to different user characteristics, achieving maximum personalization. Avoid human errors. Programmatic advertising systems are capable of managing a large amount of data from advertisers and users practically in real-time to make the best decision at all times, maximizing efficiency and reducing human errors. Simplifies systems and automates them. The process of programmatic advertising brings together different actors, such as advertisers, ad servers, platforms, and media. All of them participate in the campaign in the same place, simplifying and automating the execution and saving time and effort for all those involved. Increases range . With online programmatic advertising platforms, we can reach users from all over the world, since we operate in a globalized market with a very wide offer and demand. In addition, today we can offer these services in a variety of media. Increase the conversion ratio .
Increased personalization, the use of intelligent algorithms and the possibility of introducing changes in real time combine to create highly effective advertising and improve results. 5 examples of programmatic advertising in practice 1) Google As it could not be less, Google has been a pioneer in the use of programmatic advertising, since it began experimenting with this system in 2014 to promote its application. Google used first-party and third-party data to target their ads, helping them target the most valuable members of the audience. In addition, they also took advantage of the option to optimize their campaigns in real time by recycling their own data. The results of this experiment speak for themselves: a 50% increase in brand awareness and a 30% reduction in CPM compared to the previous year (2014). In addition, they managed to contact 30% more people three times more often . 2) Amanda Foundation The Amanda Foundation is a charity dedicated to promoting animal adoption and a great example of personalization in programmatic advertising. To increase the effectiveness of their campaigns, the Amanda Foundation used data about users to show them campaigns with the type of animal they would like to adopt. Not only did they distinguish between cat lovers and dog lovers, but they also showed each person the breed that best fit their lifestyle. What is programmatic advertising?
