What is programmatic advertising and what are its advantages?

Programmatic advertising is a type of advertising based on Big Data and artificial intelligence, serving as an automated marketing tool. Through algorithms and programming codes, it allows commercial offers to be directed over the internet, in real time, to the target audience. Ultimately, it has the ability to reach more specific segments, which are the ones that brands need the most.

But these advertising spaces do not work the same way as traditional advertising; here it can be said that what is being purchased is the audience (the 'people') who visit certain sites that interest them. Thus, through this advertising, advertisers are paying for their ads to be shown in the right place and at the right time to the audience most likely to make a purchase.

Now let's review some advantages of this type of advertising:

1. Audience segmentation

Thanks to the technology with which this type of advertising operates, it is possible to segment the audience, whether by geographic location, age, gender, among others. This segmentation is generated by the information that is previously collected on the platform.

2. Markets without limits

Based on the positive results that have been achieved as a result of the use of this advertising, the market opens up, allowing advertisers and media from all over the world to distribute their campaigns and access them without geographical limitations, and to be able to buy and sell advertising space.

3. Automation

Programmatic advertising facilitates commerce, as it makes use of SSP (Sell Side Platform) platforms, places where all the information about advertising spaces is uploaded and where resources are managed automatically.

4. Market-adjusted price

Before this type of advertising was used, the medium usually set the prices, but currently it is the advertisers who exclusively bid for the purchase of an impression. This ensures that the price paid matches the market demand.

One of the largest and most recognizable examples of companies using programmatic advertising is Google, making the Google Marketing and Google Ad Manager, platforms available to the world, two tools that integrate different company services.

Google Ad Manager was specially created to offer programmatic advertising solutions, combining two famous ad servers, DoubleClick for Publishers (DFP) and DoubleClick Ad Exchange (AdX), and including features like Optimized Competition, which helps maximize performance in private marketplaces and open auctions.

DoubleClick for Publishers

DoubleClick Ad Exchange

DoubleClick Campaign Manager

Google Marketing

Google Ads

Ad Manager 360

Plataforma Google Ads

In addition, Google Ad Manager has currently considered including programmatic advertising within streaming platforms, various apps, mobile games, video platforms like YouTube, or on smart TVs.

Now you can understand a little more why when we perform a search on Google, the first results are usually ads that match our search, since companies have likely paid for their ads to appear only to interested people. It goes without saying that programmatic advertising will continue to grow as new technologies that make it possible evolve.