Programmatic advertising is one of those topics that many talk about, few understand, and those who do understand are suspicious. The problem is that if you work in this segment, you'll inevitably have to deal with it, if not now, then in the very near future, for one simple reason: programmatic advertising is the future of advertising.
Since the Industrial Revolution, the market has been constantly searching for ways to produce more, spend less, and involve fewer people in certain tasks. The answer has always been technology. In an age of machines and software capable of virtually anything, 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're already familiar with: Today, there are countless publishers. Publishers are websites that offer spaces for media purchases, all with diverse audience targeting options, allowing advertisers to choose exactly who to show their ads to. Programmatic advertising is a new way to market these spaces, minimizing intermediaries and facilitating the buying and selling of displays. In other words, it's a programmed way of buying and selling through a tool, allowing advertisers to purchase ad space without directly contacting a seller.
If you consider that we are already accustomed to purchasing programmatically, through e-commerce, this logic becomes a little clearer, but in programmatic media, negotiations take place in the form of an auction, where the advertiser who makes the highest bid will take the space, as happens in purchases on eBay, for example.
The business adage that "time is money" is one of the greatest advantages of programmatic advertising. Automating the process makes it faster and more streamlined, replacing human labor and potential delays or other issues arising from negotiation failures and the relationship between the publisher and advertiser.
This doesn't mean people will be overlooked, but rather better utilized in other stages. According to the executive vice president of investment at Magna Global, Todd Gordon, “This is all about opening up pathways for more human and creative conversations,” leaving the realm of ideas to humans and advanced data mastery to automation technologies.
Speaking the language of Programmatic Media
ADExchange
It's a platform that allows you to buy and sell advertising space at the best prices, sometimes through real-time auctions (RTB), where you can purchase a specific audience. It creates an environment where the publisher and advertiser determine a price for the space being auctioned.
AD Network
They connect supply and demand through systems that connect advertisers with websites or portals that sell their space programmatically. They can organize channels by content type or focus solely on a single theme.
RTB (Real-Time Bidding)
Action of buying media in real-time auctions.
DSP (Demand-Side Platform)
Platform that connects to AD Exchange, helping buyers find the audience they're looking for.
SSP (Sell-Side Platform)
The platform analyzes all available inventories in real time, incorporates all market locations, and shows which one is the most advantageous at that moment.
ATD (Agency Trading Desks)
Buyers can make purchases directly, through agencies, or through trading desks. A trading desk is a team that combines a demand-side platform (DSP) and audience-origin technologies, managing programmatic media buying, bid-based media (RTB), and audience buying.
What are the types of Programmatic Media and what are the payment methods?
Programmatic media allows you to purchase display, video, social, and mobile ads on a reserved or non-reserved basis. With reserved media, you have priority when purchasing a specific inventory, known as a Private Deal or Private Ad Exchange, and the transaction takes place through a DSP. With non-reserved media, anyone with access to a DSP can purchase space within the AD Exchange.
It is possible to have a fixed cost, purchasing through the CPM model (cost per thousand impressions), or even through real-time auctions (RTB).
Is Programmatic Media worth it?
Used correctly, it's definitely worth it. Like most automated processes, programmatic advertising saves time and delivers extremely efficient and practical results. After all, why manually do something that can be done technologically objectively and with better results?
Real-time media buying platforms, or Demand Side Platforms (DSPs), along with Data Management Platforms (DMPs), operate with insight, focusing on consumer behavior and operating through algorithms that are responsible for bidding on the right media. Selecting these media and placing the best bid requires planning.
Programmatic advertising allows advertisers to choose their audience while simultaneously controlling the cost-benefit ratio. It eliminates potential friction between the intended target and the ultimate goal, allowing advertisers to reach the right people at the right time, paying only for the impressions they're truly interested in, and increasing their chances of generating qualified leads.
This doesn't mean that results will come simply from choosing Programmatic Media. As you can see, it's a complex process to master, and it requires planning and a certain amount 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), operate with insight, focusing on consumer behavior and operating through algorithms that are responsible for bidding on the right media. Selecting these media and placing the best bid requires planning.
