What is programmatic advertising and how does it work?

Programmatic advertising can be defined as the execution of the purchase of online media through stable bids or offers through algorithmic-based technologies, which define the terms of demand and are capable of executing the most appropriate purchase for campaign objectives. .

According to the research carried out by the Interactive Advertising Bureau (IAB) , the execution of programmatic advertising is carried out in terms of profiles, price, value or any other parameter set and identified by the buyer and whose execution is carried out in real time.

Programmatic advertising is carried out through different actors such as Ad Exchanges , which are auction houses that offer impressions to the highest bidder. There are also Demand Side Platforms (DSP’s), technology providers that allow price optimization thanks to Big Data or Sell ​​Side Platforms (SSP’s) , which maximize the performance of advertising spaces for the media.

The most relevant aspect for this type of tools to be of interest to companies and specialists in the field , is because the automated process of programmatic buying offers advertisers the opportunity to acquire the spaces that best suit them to publicize their goods or services.

According to the data of the IAB United States firm, this type of tools will have a greater relevance, since it is estimated that by 2018, 80% of the investment in advertising by companies and specialized marketing agencies in the United States will be allocated In programmatic algorithms, by 2019 the investment in this type of resources will register an increase of four times more compared to what is currently allocated.

A case of success in the implementation of programmatic advertising within marketing actions has been the Kellogg company, since the director of digital strategies Bob Arnold indicated in an interview for Forbes, that depending on the business lines, the investment returns ( ROI) of digital media have increased up to six times when implementing these types of resources.

Finally, BBVA points out that the main advantage of programmatic advertising is that it helps attract large advertisers. The time when brands wanted to appear on the best sites was no longer relevant. Now they look for places related to their interests, since the combination of the message, target, right moment ; it’s what makes programmatic advertising attractive.