Programmatic Advertising and its main elements

12 April

What is programmatic advertising?

Programmatic advertising is a system for buying and selling advertising space in real time through digital platforms that speed up planning and optimization times. It allows you to impact highly qualified audiences, optimizing investment to the maximum by reaching specific segments and personalizing messages.

Something we always overlook is that Google Ads, Meta, TikTok Ads, are also programmatic platforms. The difference with that more “complex” world, which you are probably looking to know in this article, is the degree of personalization that we can have in a programmatic platform such as DV360, Xandr, Microsoft Invest, Mediamath or in the world of DMP’s and its great potential for buying audiences.

Programmatic advertising is a disruptive form of media planning, and involves total personalization. of the entire process, allowing you to choose a supplier for each component of the architecture of your advertising strategy:

  • On the one hand, publishers and advertising networks integrate and dispose of their inventory through sales platforms called SSP (Supply Side Platforms) such as Magnite.
  • On the other hand, agencies and advertisers buy advertising space throughDemand Side Platforms (DSPs), such as DV360.
  • SSPs and DSPs contact each other through exchange platforms or AD-EXCHANGES, creating a digital marketplace in which both parties optimize buying and selling.
  • The DMP, which is the platform that provides different segmentations of devices, users, audiences, etc., can also appear in this linkage.

Putting this into simpler words, if you know how to do programmatic advertising you will be able to choose an audience from thousands of providers worldwide. You will then be able to show them your advertising content on content networks that are not accessible through other platforms and whose cost is lower and therefore more efficient.

You will also be able to have much more control of your impressions, clicks and overlays if you know how to use an AdServer.

It is like knowing the inside of a car’s engine, its parts, and how to interchange them so that it performs better, consumes less, or its sound system has more power. With programmatic advertising you achieve that.

Programmatic Advertising Pricing and Agreements

Pricing and agreements can be established in 4 different ways:

  1. OpenMarket: purchase of inventory by auction andReal Time Bidding (Real Time Bidding).
  2. Private Marketplace: purchase of inventory with direct agreement with the support through an auction with an established minimum price. Invited buyers participate and inventory is not guaranteed.
  3. Preferred Deal: purchase of inventory with direct agreement with the carrier without bidding (at a fixed price). The relationship is with a single buyer and inventory is not guaranteed.
  4. Programmatic Guaranteed: purchase of inventory at a fixed price and guaranteed impressions. The relationship is one-to-one.

Audience buying and relevant user information in advertising

Programmatic advertising allows to plan and segment audiences according to user profiles that are defined by own data(First Party Data), third party data(Third Party Data) and direct data(Second Party Data). All this data is collected and managed both by Publishers, who create groups of users with certain profiles, and by advertisers through data accumulation and usage platforms or DMPs.

The new possibilities of Programmatic Advertising

With this type of technology we can access very specific advertising inventories, which are not easily accessible, and often have unilateral agreements.

For example, if we wanted to advertise our brand on Netflix Ads, in 2024, the only way to do so is through the Microsoft Invest DSP, formerly Xandr.

The same happens with large content networks, or news sites, where the main and most efficient way to access advertising is with programmatic DSPs.

The possibilities are virtually endless: SMART TV advertising, Streaming, Video Games, RichMedia interactive formats, Digital On-Off-Off-Highway (DOOH) displays and many more possibilities.

How to access these advanced programmatic advertising tools?

Most of these technologies present high barriers to entry, both commercially and technically, as they require a certified team with extensive experience in the field.

Building a programmatic advertising architecture to grow your brand requires a high degree of planning and measurement. For this reason, at Boomit we have developed a specific area whose objective is to provide simplified solutions to companies that want to have all the power of programmatic advertising.

If you need access to this advertising universe, we invite you to provide us with your contact information in this form and an expert will help you.

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