Programmatic advertising: how does it work and why can it improve your sales?

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Online advertising is in a process of constant evolution and programmatic advertising is good proof of this. Currently, in Europe, programmatic advertising accounts for % of investments in display advertising , that is, the advertising format in which ads are shown to users on destination web pages.

What is programmatic advertising?
Programmatic advertising, also known as programmatic buying, consists of automating a process of buying and selling advertising , which is displayed on the web pages that users visit. It is a tool that offers many benefits, since it connects, through personalized ads and directly, brands with their possible future clients, based on information previously obtained.

These are the different types of programmatic advertising:

RTB (real time auction) . “Real time bidding” or Mexico Mobile Number List real-time auction is a type of programmatic advertising through which companies can bid in real time for advertising spaces. This makes it possible to guarantee that ads will be shown to users whose interests are related to the advertised product or service, which increases the chances of attracting customers. This entire process is possible thanks to the information collected by “cookies”.
PMP (private auction) . The “private marketplace” or private auction differs from the RTB in that it is necessary to obtain an invitation to participate in the auction. However, through this system advertisers can obtain precise information about the page where the ad will be published.
Programmatic direct . It is the most common modality; This is an agreement in which the price for publishing the ads and the websites where they will be displayed are established in advance.



Preferred deals . This system does not imply holding an auction. Instead, the websites where the ads will be published propose a specific price to advertisers, before proceeding to sell said advertising spaces through a real-time auction.
This is how programmatic buying works
Two parties participate in the programmatic purchasing process: supply and demand . The first refers to the media and websites that have a specific advertising space that they want to sell; The second is made up of companies and brands that want to buy programmatic advertising and display their ads in the available spaces on the offer's websites.

This advertising purchasing process is based on Big Data , one of the technological trends that makes the most sales . It is based on the large volume of data collected about users who browse different web pages; which advertisers subsequently use to show their products and services to a personalized audience.

These advertisers, in order to show their ads to the public in a specific advertising space, must purchase advertising through the auction; In this way, they will be able to get an audience with a specific profile to see their ads. This advertising purchasing process is carried out through the use of the following platforms :

Marketplaces : the pages where website advertising space is auctioned.
DSP or Demand Side Platforms : these platforms help advertisers find advertising spaces to share information about their products and services.