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Nigel Quadros Shares the Specifics of Programmatic Advertising and the Compelling Reasons to Use It in 2020

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In recent years, the way of advertising on the internet has changed radically, and much of the bias lies with programmatic advertising. This type of advertising not only allows to enormously increase the effectiveness of the campaigns but also impacts audiences and advertises in spaces where it was previously unthinkable, thanks to advances in AI.

Programmatic advertising simply refers to automation of purchase and sale of display ads (banners, etc.) using software and different processes. It is one of the most complex parts of marketing to understand, but it works very well if we know how and when to use it.

The main advantage of this type of advertising is that instead of talking to each support where you want to advertise, the purchase of these advertising spaces is automated through technology.

Advertising evolution

Let’s give a quick review of digital advertising’s evolution to understand the origin of the program using insights from Nigel Quadros, an entrepreneur and digital marketing evangelist:

Quadros is an ardent proponent of innovative digital marketing solutions, and bets on the model of programmatic advertising. He has pioneered digital marketing solutions, catering to a handsome client portfolio of Fortune 500 companies.

“In the beginning, advertising was purchased directly by contacting the medium. If you wanted a banner to appear on a certain website, you had to negotiate with the owner for this advertising space.

“As it experienced exponential growth and increased the number of people interested in advertising, there were much-unsold advertising that could not be placed in these spaces.

“It is then that those known as Ad Networks are born, which mainly add all the inventory of unsold advertising to get it placed.

“This network became more sophisticated in terms of software and technology until the programmatic purchase was born.

“Currently, programmatic buying is growing exponentially, and more and more businesses are betting on it to publicize their business.

“Thanks to Big Data, the program is becoming more effective since it can collect a lot of information about the user and his behavior on the network (through cookies)” – Nigel Quadros shares thoughts on programmatic advertising.

Types of programmatic advertising:

There are two different types of programmatic advertising:

The direct programmatic:

It is based on the direct contracting of advertising through a platform or software with a single medium or support.

In other words, you choose where you want your ad to appear and what type of audience you want to target, allowing you to have greater control over your campaigns.

This can be useful if you promote a certain product or service that you do not want to appear in certain media or websites (for example, an announcement of a product for babies on a weapons blog, an adult website, etc.).

RTB (Real-Time Bidding)

This type of program allows you to only impact users with certain attributes that you have previously defined.

With RTB, you can bid for advertising space in real-time by limiting the impressions of your ads to the users who are more likely to click on them.

This is done thanks to a system based on cookies that collect a lot of information from users (demographics, interests, behavior, etc.), which allows you to segment your target audience in a much more precise and effective way.

How does Programmatic Advertising work?

Programmatic advertising has two parts:

  • The offer: It includes the media, websites, blogs that have advertising space and want to sell it.
  • Demand: These are the companies, businesses, and brands that want to buy programmatic advertising.

The offer uses an SSP (Sell Side Platform), a platform where they upload all the information on their advertising spaces, the spaces they have for sale (setting a price for each space).

The SPP connects to the Ad Exchange, which serves as an intermediary between the supply and demand of ads.

The Ad Exchange detects advertising spots and user information that has been connected to this page and generates an “opportunity” for interested advertisers, in addition to setting the price of this ad.

The price is set based on the bids made by the demand or the advertisers in the DSP (Demand Side Platform) where the campaigns and all their segmentation are configured (such as Facebook Ads or Google Adwords).

Also, the DSP is concerned with finding the best price for these holes thanks to the Bidder, which through algorithms and AI, is dedicated to getting you the best result according to the budget you have and the options you have selected.

All the information and data about the users to create the audiences of these campaigns are in the DMP (Data Management Platform).

The DMP serves both supply and demand:

  • Offer: Create specific audiences to sell them (for example, if a newspaper has a section on cars, you can create a specific audience made up of all the users who visited this section and sell it to businesses interested in impacting these users).
  • Demand: Allows advertisers to create specific audiences to target based on the advertiser’s data or external sources.

All of this information from the DMP is organized to make advertising as effective as possible and give both parties the ability to segment as effectively as possible.

Besides, external agents such as the Trading Desk are agencies or parts of specialized programmatic agencies that facilitate the purchase of advertisements for companies by contributing their knowledge and technology.

On the other hand, there are affiliation networks and ad networks that offer the same service and the media that offer their advertising space.

And finally, we have the Ad Servers, which are the ones that serve and launch the ads to the corresponding advertising spaces (they are a repository where the advertiser places their banners, videos, etc.) and measure their information (viewing time, clicks, etc.).

Benefits of programmatic advertising:

Programmatic advertising offers several benefits for your business and advantages over traditional advertising:

You can reach an infinity of supports

One of the program’s biggest advantages is that thanks to technology and AI, it has been possible to create a system in which you can place your ads in an infinity of media, websites, blogs, etc. that before was unthinkable.

You can improve segmentation

Big Data and the collection of user data allow you to carry out advertising campaigns with precise segmentations in which you can play with variables such as the type of user, the place where they are, their interests, their online behavior, etc.

It is much more efficient

Thanks to technological advances and a series of processes that bring together different interconnected agents, you can purchase ads yourself by connecting to a platform/software, which saves a lot of time, work and money.

Examples of Programmatic Advertising

To illustrate it better, we will leave you some examples of programmatic advertising that you can find when you browse the internet:

You want to buy some sneakers you enter the Decathlon website, you find a product that interests you, but finally, you do not buy it. The next day, while you are browsing your favorite online newspaper, an ad appears offering you these same sneakers.

You are interested in taking a trip to Morocco this summer, so you decide to do a Google search to find more information about hotels in this country. At the top of the search results appear some ads that have been placed by advertisers and that only appear to users who do searches of this type.

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