If we had to explain it briefly, we would say that Programmatic Advertising represents an advanced and innovative tool through which companies can reach their target audience using online advertising and through the investment of lower budgets.
In more technical terms, Programmatic Advertising is a real digital tool – or better still process – based on the acquisition of data collected by pixels and cookies . The latter are intended as monitoring systems that allow you to define target users by recording some actions performed online. On the basis of the data acquired and their interpretation by specific platforms, the most suitable advertising spaces are purchased in a fully automated way to achieve the established marketing objectives.
The main advantages of programmatic advertising
Exploiting all the potential of Programmatic Advertising campaigns means benefiting from a series of advantages , the main ones of which are:
- The ability to significantly increase brand awareness
- The achievement of very high redemption in the face of controlled budgets
- Absolute control of the expenses incurred
- The ability to read and interpret the data obtained
- The opportunity to define targeted strategies with typical customers based on the information interpreted
These are undoubtedly very important benefits , which have contributed to the spread and success of this new method of digital marketing campaigns. In particular, in 2016 Programmatic Advertising had already seen total investments equal to 315 million euros , and an increase of 25% in the following year. In practice, companies are choosing Programmatic Advertising campaigns more and more often because they not only guarantee better redemption and more effective targeting , but also because they allow them to optimize investments in the best possible way.
Can we consider programmatic advertising as a competitive advantage for companies ? Obviously yes , especially because never before has the digital market been evolving and constantly offers new technological opportunities for the interpretation of the most important intangible assets of companies: data !
The types of programmatic advertising
Several types of Programmatic Advertising are currently available . Let’s see the most common ones together.
- Category Targeting : through the Programmatic Advertising platform, it is possible to categorize websites by directing your advertising communication to those that are consistent in content and message.
- Contextual Keyword : the advertising message is directed exclusively to web pages that present, within them, keywords relevant to the campaign. This selection takes place starting from the drafting of a list of keywords.
- Affinity Audience : these campaigns are based on the acquisition of third-party data, i.e. on the purchase (always in programmatic mode) of lists that can then be targeted according to specific audience groups.
- Similar Audience : in this way, the campaign can be extended not only to the target audience but also to users who are similar in behavior, interests and characteristics and who pass through the site on which the ad is published. It is ideal for remarketing activities.
Programmatic Advertising in brief: this is how it works
But how does programmatic advertising work in a nutshell?
Without prejudice to the need to base any digital marketing campaign on accurate preliminary strategic assessments , Programmatic Advertising is conceived as an automated system which, through the use of dedicated software and platforms, relates demand with supply through analysis of particular factors:
- The message to spread
- The typical user, i.e. the target
- The impression
- The target audience, similar or related
- The category of the website
- The budget allocated
The algorithms will analyze the different messages selecting the potentially most effective one , i.e. capable of generating the highest redemption (i.e. the highest prospective return). On it the resources will be optimized in order to contain costs, maximizing the ROI of the campaign.