In our digital world today, since companies discovered that they could advertise on social networks, they opted for the most efficient way to do it, and then the programmatic purchase was born.

The processes of buying media manually, have evolved to give way to the Programmatic Purchase, well known as well as programmatic ad buying. This allows the design of advertising campaigns much more precise, and with scope projections.

The programmatic ad buying can be defined as the massive and automated purchase of advertising spaces in digital media.

Actors Involved in Programmatic Ad Buying

To develop the Programmatic ad buying, we need to establish an automated relationship between all the agents that interact with it.

• Advertisers: The brands that want to make public a product or service through different media.
• Editors: They are responsible for the media they place in relation to advertisers brands with users.
• Users: They are potential customers. They are the fundamental element that interests brands so much, to impact their messages.

How does Programmatic ad buying work?

For programmatic ad buying, assigning a value to the printing in real time, we would be talking about RTB (real time bidding).

The RTB is known as an online advertising inventory purchase model, based on bids for each unique impression.

Also, different agents are involved for each transaction (agencies, advertisers, ad exchanges, DSP, trading desks, advertising networks, media, etc.).

It should be noted that RTB is carried out in very high volumes of purchase and sale, so we talk about mass purchases.

In order to offer adequate publicity to the interests of the target, there are used things such as location data, sociodemographic characteristics, purchase history, etc. On the other hand, knowing the previous data, increases the efficiency of advertising, and also the conversion probabilities.

Then, the purchase and sale of advertising is carried out through technological platforms.

These platforms have been designed to carry out transactions mechanically. We emphasize that without the need for human intervention, only through parameters, we can make the Programmatic ad buying.

5 Reasons to Choose Programmatic ad buying

If you are still not sure about using the Programmatic Purchase, take a look at the reasons why you should start:

1. Each auction makes it easy for an advertiser to show a specific ad to a single consumer in a defined context.
2. You can plan a campaign in real time, enabling the optimization of the campaign while it remains active.
3. You can bid on digital media and buy them without previously negotiating a price, contracting a specific budget or a minimum number of impressions.
4. Costs tend to be lower than in traditional advertising purchases, increasing budget performance.
5. Each impression can be measured in real time, which makes it easy to define a clear objective and quantify it.

An important part that facilitates the Programmatic ad buying, is Big Data. This refers to the collection of millions of data done through the platforms.

This is why, it becomes necessary an intelligent reach of data flow. Besides, the data collected by the platforms, are grouped and related to create a supply and demand system.

Then, it is (in this new digital ecosystem) where data becomes our best ally. In addition, it allows us to reach many more digital media than with a manual purchase.

We must point out that the different processes of the traditional digital advertising buying and selling model, will continue to work.

However, the automation based on thousands of data on which the programmatic purchase is based, allows you to create smarter media buying strategies by bidding in real time.

Therefore, it is predicted that more and more actors will introduce it into their businesses, as the favorite way to maximize results and with more efficient campaigns.

Programmatic TV

During 2019, advertisers in the United States will invest 3.8 billion dollars in programmatic advertising on television, according to an eMarketer estimate, which will mean an increase of 236% compared to 2018. So, it is a new way that companies are betting on.

This increase will be benefited by the implementation of better tools to segment and deliver the ads. In addition, it allows to measure its effectiveness on all audiovisual platforms: Smart TV, mobile devices and computers.

In Spain, Smart TVs have become a reference for content consumption. In fact, a 57% of Internet users have a Smart TV and 62% have a subscription, both streaming video platforms (such as Netflix, HBO or Amazon Prime Video), and paid TV, according to The Cocktail Analysis.

There are almost 6.9 million people subscribed to  cable TV, according to the National Commission for Markets and Competition (CNMC).

A SpotX report estimates that “connected television” will generate advertising revenues in Spain of 105 million euros in 2020.

As in previous posts we’ve talked about the importance of training and knowledge, Google is a platform that is not far behind.

This is why we leave you a short summary to understand more the Programmatic ad buying.

Is Programmatic something that you wanna read about? This is the purchase and sale of advertising through data-based technology, cookies and Machine Learning algorithms. Do you want to know more or read more about this?

As a Performance Agency, we work to take your brand to the next level. Contact us!