Programmatic advertising is a type of online advertising based on the automated purchase of spaces according to different Internet audiences . Its objective is to connect a brand with a specific user through an eye-catching advertisement that can be seen at the most appropriate time and place.
In this article we will tell you what overseas chinese in usa data programmatic advertising is, what its key elements are and what advantages its use brings . However, if you want to go into more detail, we recommend that you consult our Programmatic Advertising Course qualification .
Key elements in the programmatic advertising process
Before explaining in more depth how programmatic advertising works, we need to know a series of key terms to understand it:
Trading desk : team of people in charge of developing proprietary technology to buy programmatic advertising on multiple platforms (DSP).
DSP : acronym for Demand Side Platforms (DSP) . These are platforms that operate through an internal algorithm in charge of finding the most economical options to display certain ads on the advertiser's banners .
Ad Server : An online advertising server that offers the ability to display a set of advertisements in advertising spaces designated for them on websites.
SSP : Sell Side Platforms (SSP) are platforms responsible for automating the commercial management of a large number of digital media.
Ad Exchange : In the digital field, it is the meeting point between supply and demand . The Ad Exchange acts as an intermediary, collecting advertising spaces from SSPs and then generating auctions that are sent to DSPs. These are responsible for purchasing them automatically.
How does programmatic advertising work?
Below we explain step by step how programmatic advertising works:
When a user enters a website with programmatic advertising, the automated advertising process is activated within seconds, without the user noticing.
The website owner puts the ad impression up for auction through the SSP.
Advertisers bid for that impression . This is where DSPs come into play.
The DSP sends an offer to the SSP . This entire process occurs in real time, which is why programmatic advertising is known as real-time bidding .
The highest bidder is the one who ends up winning the ad impression.
The advertisement appears on the plaintiff's website .
The user can click and cause conversions.
Advantages of programmatic advertising
Some advantages that come with using programmatic advertising are:
Expansion of supports
Thanks to the expansion of technology and artificial intelligence in marketing , programmatic advertising has been able to develop a system that allows advertising in a wide variety of media .
Improved segmentation
The use of other cutting-edge technologies such as big data has made it possible to execute highly segmented campaigns . This makes it easier to play with different variables that lead to greater precision when creating advertising for the user.
Increased efficiency
Thanks to technological advances and a series of processes capable of bringing together different agents, it is easy for the advertiser to buy ads . This means a huge saving of time and money .
Wide optimization potential
Programmatic advertising allows for real-time adjustments , evaluating which types of ads are performing best and which are underperforming. This allows for continuous optimization of campaigns and greater control over advertising.
Greater predisposition on the part of the user
With programmatic advertising, it is virtually possible to customize the ad you want to show to the user. This helps improve their web experience.
Examples of programmatic advertising
The following examples will help you recognize programmatic advertising better:
Display advertising : these are advertisements or banners that appear on web pages.
Video : Video ads can appear on other videos or within the website.
Retargeting : These are ads specifically designed to track users who have previously visited a brand's website. Their goal is to achieve their conversion .
Native advertising : These ads integrate and adapt their content according to the format of the web page where they appear.
