Programmatic advertising consists of offering each user / consumer those ads tailored to their tastes, desires and needs at the right time through algorithms and new technologies.
The way and habits of consuming are changing and nowadays, it is based on configuring personalized campaigns for each individual, instead of a single advertisement for a massive audience as it had been doing until a few years ago.
Programmatic advertising tries to offer the advertisement of the product in which the user is interested, at the right time, we will increase the conversion ratio. It is not about offering a single brand ad to as many people as possible (eg, a TV ad or billboard), that increases visibility and reach, but not conversion, since most will not be interested in the product. However, by segmenting the audience according to their tastes, desires and needs, we will show the ad to a smaller audience but who have some interest in the product or brand, which will increase the conversion to purchase ratio; The objective that every brand pursues.
With this type of advertising, the aim is to reach the “perfect target”: the ideal consumer profile is no longer sought, but rather to categorize the public by segments of tastes, sociodemographic factors.
Getting to segment the audience by their tastes and needs and configure campaigns tailored for them, is what is known as programmatic advertising.
This is generally done through real time bidding (RTB), in which various agents and platforms bid for advertising space. Advertisers set the price they are willing to pay for each impression based on the user’s profile and page audience.
Scheduled advertising that massively personalizes
The massive use of the internet, allows you to leave a trace of each user on the network according to their most recent searches, the websites they access, at what times they connect, from what device, from where, if they access through social networks, other links or direct search … and a long etcetera of parameters that can be analyzed through technology based on artificial intelligence applied to the business (business intelliegence) and the ability to analyze millions of data quickly and efficiently ( big data ).
Every time the “cookies” are accepted, we are accepting that certain navigation parameters are registered by the websites in which we are. With this trace and programmatic algorithm technology, combined with digital SEM marketing strategies , it is what allows us to study consumer trends in order to offer personalized advertising for each user. That is, configure a programmatic advertising campaign or also known as “remarketing”.
The advertising that appears to each consumer is usually decided in real-time auctions.
Now the company buys audiences and not supports: That is, it pays to offer an ad to a specific audience and not to advertise in a certain place or channel.
Advantages of programmatic advertising
These are the main advantages of programmatic advertising:
- Connect with the right audience at the right time
- Transmit a message tailored to the needs and wants of the consumer in real time
- Increased conversion to sales. Although during the purchase process there are numerous metrics to analyze, the main ones of the conversion funnel are the following:
- Nºclicks in the ad / Nºvisualizations
- Nº sales / Nº click on the ad
- Nº sales / Nº visualizations
Disadvantages of programmatic advertising
These are the main disadvantages of programmatic advertising:
- In many cases, users are harassed by brands and find it annoying to see too many ads when they are on the internet. There are such ad blocking systems to prevent this intrusion.
- The prices to bid to appear in the first positions of certain searches, rise too high and in many occasions, it is not profitable for the company.
Examples of programmatic advertising
Surfing the internet we find numerous examples of remarketing or programmatic advertising.
- If we have been looking for classic Spanish literature books, from that moment on each time we surf the net, advertising banners will appear on the sides or in the header with announcements of offers for this type of book. They are remarketing advertising campaigns, that is, once they have shown interest in a certain product, they will show you ads related to your search for a certain time to encourage your purchase.
- When we do a search in Google and see how our words match the first links that appear and these are indicated as “ads”, it is no coincidence. The company has paid to appear at the top of those searches. That is, you are paying for your ad to appear only to people interested in that topic.
- The Programmatic TV: The birth of a new television suited the tastes and interests of each user and who can consume at the time you choose (Smart TV) is an opportunity to implement programmatic advertising on TV. That is to say, that ads are shown when they are consuming TV according to their tastes and needs, just as it happens on the web, but this time with TV format and support