The programmatic advertising is a leading method for buying and selling digital advertising space. Global average programmatic spending is expected to reach 82 % during 2022¹. In this blog, we'll explore the basics of programmatic advertising, how it works, and how you can leverage it to generate revenue.
What is programmatic advertising?
The programmatic advertising either programmatic ad buying is the use of advanced technology for media buying and digital advertising. It uses data and algorithms to show automated ads to users strategically, based on different aspects such as their histories and purchasing behavior¹. Currently, a 85 % of advertisers and 72 % of publishers use programmatic advertising due to its higher return on investment and the speed with which it can be acquired¹.
How does programmatic advertising work?
Programmatic advertising differs from traditional purchasing by not having to resort to a long acquisition process, which includes proposals, tenders, quotes and negotiations. On the other hand, programmatic advertising is “faster” to acquire. Here are the key steps of how it works:
- Ad Exchanges or Marketplaces: These are platforms where ad auctions are carried out. Advertisers can bid for advertising space in real time.
- Demand Side Platforms (DSP): These platforms optimize prices using big data referring to users. They help advertisers purchase advertising inventory efficiently.
- Data Partners: They provide data that enriches the advertising strategy. This data may include user demographic information, interests, and behaviors³.
Advantages of programmatic advertising:
- Greater precision: Allows you to reach specific audiences based on data and behaviors.
- Greater efficiency: Automation reduces costs and acquisition time.
- Greater customization: Ads are tailored to users' individual interests.
- Higher return on investment: Accurate segmentation and price optimization generate better results⁴.
In short, programmatic advertising is a powerful strategy to boost your digital ads and generate revenue. Take advantage of its advantages and consider implementing it in your digital marketing strategy.
¹: HubSpot Blog
³: Cyberclick
⁴: Dongee
Origin: Conversation with Bing, 3/24/2024
(1) What is programmatic advertising and how does it work? – HubSpot Blog. https://blog.hubspot.es/marketing/que-es-publicidad-programatica.
(2) What is programmatic advertising? How it works and its advantages. https://www.cyberclick.es/numerical-blog/que-es-la-publicidad-programatica-como-trabajo-y-sus-ventajas.
(3) Programmatic Advertising: Benefits and Strategies for Beginners. https://www.dongee.com/tutoriales/publicidad-programatica-beneficios/.
(4) El papel clave de los publishers en la publicidad programática.. https://bing.com/search?q=Publicidad+Program%c3%a1tica%3a+C%c3%b3mo+Aprovecharla+para+Generar+Ingresos.
(5) Programmatic Advertising: The Complete Guide | AppsFlyer. https://www.appsflyer.com/es/resources/guides/programmatic-advertising/.
(6) undefined. https://bing.com/search?q=.
