Programmatic advertising: what it is, advantages and how it works

Advertising is forced to always be in constant evolution if it wants to become truly efficient, because consumers end up getting tired of everything. Programmatic advertising is a modality that emerged as a result of the development of new technologies such as big data , and seeks to improve the efficiency of campaigns. 


What is programmatic advertising

Programmatic ads have the ability to show the user products and services that might interest them , and do so just at the time when they may be most willing to purchase them.   

It is an advertising mechanism that takes advantage of big data ‘s own data storage and segmentation capacity to show ads that adapt as best as possible to the profile of each consumer.   

With programmatic advertising on Google or other platforms, companies no longer buy advertising space, but buy audiences . 

How programmatic advertising works

In the traditional advertising model, a company buys a space for its advertisement and it is displayed there during the agreed time. Although an attempt is made to place advertisements on websites that are of interest to potential customers of the advertised product or service, there is no guarantee that they will be attracted to the advertising campaign.

What programmatic advertising does is use algorithms to know the type of consumer profile you are facing and show you an ad that it knows may be of interest to you.  

For example, if the algorithm has detected that that person is looking for new small cars, it could show them a product of this type, even if the website the Internet user is browsing at that moment has nothing to do with the automotive industry.

What are its benefits

The main benefit for brands is that they can do much more segmented advertising . Additionally, since they only pay each time their ad is shown to someone who meets the potential customer profile of their products or services, they can run much more efficient campaigns for less money .  

To this we must add that it is a form of automated advertising and that allows you to find potential clients anywhere in the world. Furthermore, both during the campaign and after it, you can access the data, and this allows you to obtain very useful information that allows you to create increasingly successful campaigns . What’s more, it is even possible to modify the campaign while it is running to achieve better results if you notice that something is not going well.   

As for consumers , the great advantage for them is that the advertising they receive when they browse is, at least, related to their interests . This makes them not feel so bored despite seeing many ads if they spend time online.  

With so many advantages, it is clear that learning programmatic advertising is a good idea. It is essential to have some basic notions about how it works to be able to get the most out of it. Because knowing the buyer persona , segmenting the audience well and choosing the channels appropriately are essential steps to achieve success with this type of advertisement.