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Programmatic buying

What is programmatic buying?

Programmatic buying is a concept that, when applied to digital marketing, refers to a fully automated process that allows the purchase of advertising space on the Internet (in different media and websites) without human intervention.

The process is based on taking advantage of the algorithms present in DSP (Demand Side Platform) platforms to work with various online advertising placement options according to the features of the product or service being promoted. The ultimate goal of programmatic buying is to offer an option for advertisers to reach specific audiences and potential customers, analyze their behavior and know when is the best time to target them with advertising.

It is the result of the union between Big Data and Real Time Banding (RTB), since programmatic buying manipulates and analyzes a large amount of data to determine, in real time, the suitability of each advertising space purchase.

1. Advantages of programmatic buying

Programmatic ad buying brings improvements over traditional digital advertising buying channels:

– In a single channel: most of the processes and the different players involved in digital advertising (advertisers, agencies, Adserver, etc.) are unified in a single automated channel. This simplifies the process, saves time and reduces costs.

– Focuses on a segment: programmatic buying focuses on a previously segmented sample of users, to target only those who have shown real interest in your brand/product. It is the algorithms that analyse and evaluate users’ digital behaviour that enable this high degree of specialization.

– Enhanced coverage: programmatic buying allows you to reach many more digital media and a larger audience than can be reached with traditional marketing methods. You can reach several segments of people interested in your product at the same time, in a massive way, thus increasing conversions.

2. types of programmatic buying

There are several ways of making programmatic purchases, among the most common are:

– Open Deal. In this case, a segmented inventory is offered to all buyers in the same market who can bid on its impression package. The Open Deal market varies according to the DSP or SSP platforms used. Both buyers and publishers have access to the behavior of each campaign and its metrics.

– Open Market. This market is bid on directly and all buyers have access to all publishers. It is essential to filter in order to only buy spaces that are ideal.

– Programmatic Direct o Guaranteed. Here the buyer and publisher agree on a fixed price and a guaranteed volume of impressions. No segmented data is offered, nor can the campaign be optimized based on the results obtained.

– Preferred Deal. The publisher offers certain advertising space to clients who are most likely to get impressions. If the impressions are not sold, they are made available again to others.

– Private Market Place. This is where inventory is grouped by blocks and works very well in digital newspapers, as one ad can be placed in several sections of the newspaper. A minimum purchase is set for selected buyers and, if there are any remaining impressions, they are diverted to other marketplaces.