What is programmatic advertisement? Why is it important for growth?
Each time a user accepts the so-called "cookies" within a web page, they are automatically accepting certain registered browsing parameters — one of the most common practices in the programmatic advertising environment.
The technology of programmatic algorithms uses that IP trace and combines it with marketing strategies, which allows the study of consumption trends in order to offer personalized advertising for each user.
In this way, companies can buy audiences and not media; that is, they pay to offer an advertisement to a specific audience and not simply to advertise in a certain place or channel.
What is Programmatic Advertising?
Programmatic advertising or programmatic buying is a term that refers to the automated purchase of advertising space on the Internet.
Marketed through an automatic procedure for the purchase/ sale of advertising, it highlights auctions or bids that a person can make in real time (RTB or Real Time Bidding).
In the programmatic advertising purchase process, it can be said that advertisers buy "people's attention" rather than advertising spaces.
This makes program advertising one of the smartest ways for online marketing. An advertiser only has to pay for their target audience making your ads both effective and efficient.
It allows for a better connection between the brand and its customers showing the right ad to the right person at the right place and time.
The value that this process offers is that only a person who is interested in receiving a specific ad receives it on their screen. It only offers relevant material to the potential customer instead of exposing them to invasive or out of context ads as it used to happen in the past.
In this way, the most interesting advantage of programmatic advertising is the ability to personalize advertisements.
How does Programmatic Advertising work?
The programmatic advertising uses a system based on algorithms, which manages to establish the existing matches between the spaces available in various online media and the data that the advertisers have regarding the profile of the audience they want.
In this way, they store data relevant to their browsing, and can also predict the behavior of Internet users.
Due to this, users manage to receive advertising which is more related to their tastes and interests in real time while browsing. Thus, providing a greater user interaction with advertising, improving the rate of clicks on the ad while deriving more traffic.
Programmatic advertising is an effective way to choose in real time the public that you want to show the advertising of a company, taking into account:
- your interests
- their likes
- preferred time to browse
- devices from where it connects
In addition to some demographic data such as:
- social position
In addition, the advertising messages, being able to choose which ads to show, limit the ads at different times of the day and as often as desired, as well as how much margin is there to pay for showing such ads.
Growth benefits of Programmatic Advertising
If we compare the programmatic advertising with the more traditional models of online advertising, we will observe that it manages to offer different benefits, among which we can mention:
- Segmentation by users. Through programmatic advertising and Real Time Bidding, it is possible to filter the advertisements through the profile of the users. In this way, the ad is not only shown taking into account the medium and profile; but also, the user's behavior in the digital environment.
- Simplified system. This process brings together various agents such as advertisers, adservers, platforms and media, which participate in the online advertising campaign, all in one place. Facilitating in this way the process of execution, and above all saving time, work and money.
- Better rates. Due to the segmentation by user profile, the conversion ratios per ad click are greater since they allow advertisers to obtain higher quality traffic and manage to sell their space in a more optimized way.
- Greater reach. Since you could reach potential customers around the world, placing ads in various advertising networks, channel, and geographic locations makes the process more efficient.