Programmatic media is one of those topics that many talk about, few understand, and those who do are skeptical. The problem is that if you work in this segment, you will inevitably have to deal with it, if not now, then in the very near future, for one simple reason: programmatic media is the future of advertising.
Since the industrial revolution, the market has been relentlessly seeking a way to produce more while spending less and involving fewer people in certain demands, and the answer to this has always been technology. In times of machines and software that can do practically everything, the time has come for this automation to reach the media market.
But what is Programmatic Media, after all?
To better understand, let's first outline the scenario we already know: Today there are countless publishers. Publishers are websites that offer spaces for media purchases, all with various audience segmentation possibilities, allowing advertisers to choose exactly who they will show their ads to. Programmatic media is a new way to market these spaces, minimizing intermediaries and facilitating the buying and selling of displays, meaning it is a programmed way to buy and sell through a tool, where the advertiser can purchase an advertising space without directly contacting a seller.
If you think about it, we are already used to buying programmatically through e-commerce; this logic becomes a bit clearer, except that in programmatic media, negotiations take place in the form of auctions, where the advertiser who bids the highest will win the space, just like in purchases on eBay, for example.
The maxim in the business world that "time is money" is one of the greatest advantages of programmatic media. The automation of the process makes it faster and more linear, replacing human labor and potential delays or other problems arising from failures in negotiation and relationships between the publisher and the advertiser.
This does not mean that people will be disregarded; rather, they will be better utilized in other stages. According to the executive vice president of investment at Magna Global, Todd Gordon, "All of this is about opening pathways for more human and creative conversations," leaving the field of ideas for humans and the advanced domain of data for automation technologies.
Speaking the Language of Programmatic Media
AD Exchange
It is a platform that allows the buying and selling of advertising spaces at better prices, sometimes through real-time auctions (RTB), where you can buy a specific audience. It creates an environment where the publisher and the advertiser determine a price for the space being auctioned.
AD Network
They are the connection between supply and demand, through systems that link advertisers with websites or portals that sell their spaces programmatically. They can organize channels by content type or work solely with a specific theme.
RTB (Real-Time Bidding)
The action of buying media in real-time auctions.
DSP (Demand-Side Platform)
A platform that connects to the AD Exchange, helping the buyer find the audience they are looking for.
SSP (Sell-Side Platform)
The platform analyzes all available inventories in real-time, incorporates all market squares, and shows which is the most advantageous at that moment.
ATD (Agency Trading Desks)
The buyer can make the purchase directly, via agency or through trading desks, which are operation desks. A Trading Desk is a team that works by uniting a Demand-Side Platform (DSP) and technologies that generate audience, managing the purchase of programmatic media, media based on bidding (RTB), and audience buying.
What are the types of Programmatic Media and what are the payment methods?
In Programmatic Media, it is possible to buy Displays, Videos, Social, and Mobile in a reserved or non-reserved manner. In the reserved option, you have preference in purchasing a specific inventory, called a Private Deal or Private Ad Exchange, and the negotiation occurs through a DSP. In the non-reserved option, anyone with access to a DSP can buy a space that is within the AD Exchange.
You can have a fixed cost by purchasing through the CPM (cost per thousand impressions) model, or through real-time auctions (RTB).
Is Programmatic Media Worth It?
When explored correctly, yes, it is definitely worth it. Like most automated processes, programmatic media saves time and has an extremely efficient and practical result. After all, why do something manually that can be done in a technologically objective way with better results?
Real-time media buying platforms, or Demand Side Platforms (DSPs), along with Data Management Platforms (DMPs), act insightfully, focusing on consumer behavior and operating through algorithms, which are responsible for the bids for the right media. To choose this media and give the best bid, planning is essential.
Programmatic media allows advertisers to choose their audience while controlling the cost-benefit of this business. It eliminates potential noise between what is intended and the final objective, allowing the advertiser to reach the right people at the right time, paying only for impressions that truly matter and increasing their chances of generating qualified leads.
This does not mean that results will come simply from choosing Programmatic Media. As you can see, it is a complex process until fully mastered, and it requires planning and a certain degree of knowledge and skill in digital marketing strategies and platforms to maximize this service.
Real-time media buying platforms, or Demand Side Platforms (DSPs), along with Data Management Platforms (DMPs), act insightfully, focusing on consumer behavior and operating through algorithms, which are responsible for the bids for the right media. To choose this media and give the best bid, planning is essential.