Programmatic Advertising

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About Programmatic Advertising?

Programmatic advertising consists in offering each user / consumer those ads adapted to their tastes, desires and needs at the right time through algorithms and new technologies.

The way and habits of consumption are changing and nowadays, it's based on configuring personalized campaigns for each individual, instead of a single advertisement for a mass audience as it had been doing until a few years ago.

Programmatic advertising tries to offer the announcement of the product in which the user is interested, at the right time, we will increase the conversion rate. It isn't about offering a single advertisement for a brand to as many people as possible (for example, a TV ad or a billboard), that increases visibility and reach, but not conversion, since most won't 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 have a certain interest in the product or brand, which will increase the conversion to purchase ratio; The goal that every brand pursues.

With this type of advertising it's about reaching the "perfect target": The ideal consumer profile is no longer sought, but in categorizing the public by segments of tastes, sociodemographic factors.

Reaching the audience by their tastes and needs and setting up campaigns tailored for them, is what is known as programmatic advertising.

This is usually done through real-time bidding (RTB), in which several agents and platforms bid on advertising spaces. Advertisers mark the price they are willing to pay for each impression based on the user's profile and the audience of the page.

Programmed advertising that massively customizes

The massive use of the internet, allows you to leave a trace of each user on the network according to their most recent searches, websites that you access, at what times you connect, from what device, from where, if you access through social networks, other links or direct search... and a long list 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're accepting that certain parameters of navigation through the websites in which we're are registered. With this trail and the technology of programmatic algorithms, combined with SEM digital marketing strategies, it's what allows to study the trends in consumption in order to offer personalized advertising for each user. That is, set up 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 hearings and not supports: That is, it pays to offer an ad to a specific audience and not to advertise in a particular 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 adapted to the needs and wishes of the consumer in real time
- Increase in conversion to sales. Although there are numerous metrics to analyze during the purchase process, the main ones of the conversion funnel are the following:

1. Nº clicks in the ad / Nº visualizations
2. Nºventas / Nºclick in the ad
3. Nºventas / Nºviews

Disadvantages of programmatic advertising

These are the main disadvantages of programmatic advertising:

- On many occasions, users feel harassed by brands and find it annoying to see too many ads when they are online. There are ad blocking systems of this type to avoid this intrusion.
- The prices to bid to appear in the first positions of certain searches, rise too high and in many occasions, it isn't profitable to the company.

Examples of programmatic advertising

Browsing the internet we find numerous examples of remarketing or programmatic advertising.

- If we have been looking for books of classical literature, from that moment every time we surf the web, we will see advertising banners on the sides or in the header with announcements of offers of such books. 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 period of time to encourage your purchase.
- When we do a search on Google and see how our words match the first links that appear and these are indicated as "ads", it isn't accidental. The company has paid to appear in the top positions of those searches. That is, you're 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 show ads when they are consuming TV based on their tastes and needs as it happens on the web, but this time with TV format and support.

In this link we can see and understand how SEM positioning works and more examples related to this type of marketing.


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