Programmatic media is a digital marketing strategy. It automates the buying and displaying of online ads. This allows brands to reach their target audience accurately and efficiently. Compared to traditional digital advertising, this method is more direct. In 2020, in the USA, 85% of digital ad space sales were made through programmatic media.

In Brazil, 22% of investments in online advertising go to this. Worldwide, the programmatic advertising market already surpasses $400 billion. And the forecast is that it will reach $725 billion by 2026. This shows that programmatic media is becoming essential.

Main Ideas About Programmatic Media

• Programmatic media is an automated digital marketing strategy for buying and placing online ads.

• It allows brands to reach target audiences more accurately and efficiently than traditional methods.

• It represents 85% of digital ad sales in the USA and 22% of the Brazilian online advertising market.

• The global programmatic advertising market reaches $418 billion and is expected to hit $725 billion by 2026.

• It is a strategy increasingly adopted in the global advertising landscape.

What is programmatic media?

Programmatic media uses technology to improve the buying of online ads. It automates the process, unlike older methods. This also helps use data to make better choices in digital advertising.

Definition of programmatic media

This strategy automates the interaction with online ads. It uses advanced technologies to show the right ads to the right people.

Main features and objectives

Its goal is to automatically buy online advertising space. This helps to spend less and reach the right audience. Thus, money is spent more efficiently and results are better.

These platforms also collect data on how people behave online. With this information, it is possible to create more attractive and personalized ads.

How programmatic media works

Programmatic media connects advertisers with publishers automatically. This is done through Ad Exchanges. There, website owners put ad spaces up for sale. Meanwhile, companies looking to advertise seek these spaces.

Ad buying and selling flow

These transactions occur through online auctions. This is what we call Real Time Bidding or RTB. Advertisers buy these spaces based on CPM.

Everything in this process is automated. From choosing who will see the ads to its reach. This is made possible thanks to technologies that analyze people's behavior.

Platforms and systems involved

Several systems and platforms are essential in programmatic media:

• DSP (Demand Side Platform): serves for the buying and management of campaigns;

• DMP (Data Management Platform): focuses on collecting and analyzing user data;

• SSP (Supply Side Platform): helps publishers offer their advertising spaces;

• Trading Desks: companies specializing in programmatic media trading;

• Ad Exchanges: are the real-time auction platforms (RTB).

Advantages of programmatic media

Programmatic media offers several advantages for companies in the digital world. These include:

1. Greater precision in ad targeting: With specific data and algorithms, we easily find our target audience. This helps us avoid wasting resources and create more effective campaigns.

2. Greater efficiency in budget allocation: Thanks to automation, we spend our advertising money efficiently. This cuts down on worthless expenses and brings better results.

3. Greater monitoring and optimization capabilities: Through programmatic media platforms, we see in detail how our campaigns are performing. We can constantly adjust them to maximize success.

4. Greater agility and simplification: Buying advertising space is easier with programmatic media. This makes online advertising faster and more effective.

These advantages make programmatic media an excellent choice for anyone investing in online advertising.

Key terms of programmatic media

To understand programmatic media, it's crucial to know some key terms. Let's look more into them:

DSP (Demand Side Platform)

The key technology for buying ads is the DSP (Demand Side Platform). It enables buying on platforms and managing campaigns. This automates media buying, providing an interface for control and access to Ad Exchanges.

DMP (Data Management Platform)

The DMP (Data Management Platform) collects data with cookies on websites. This information is useful for targeting ads to the right audiences and analyzing campaigns. It also helps set the targeting of campaigns.

SSP (Supply Side Platform)

On the other hand, the SSP (Supply Side Platform) provides space for publishers to sell ad space online. Publishers decide prices and how to sell their advertising spaces.

Trading desk

Trading desks are companies that assist in programmatic media transactions. They manage and advise on campaigns, making programmatic media easier for advertisers.

Ad Exchange

Ad Exchanges are places to negotiate ads in real time. They use a technique called Real Time Bidding or RTB. Here, ad sellers can sell their spaces directly to interested advertisers.

Ad formats in programmatic media

Programmatic media offers various types of ads. Each has unique benefits. Let's look at some formats and how they fit into digital advertising.

Display

The display ad format uses banners on websites or apps. This reaches many people. There are many places where you can place these ads.

Video

Video ads are great for catching attention. They can appear before a video or amidst content. This makes them more interactive.

Native Ads

Native ads blend into the content of websites. They appear more natural and improve user experience. This way, they stand out less like direct advertising.

Audio

Audio ads play during leisure moments. You find them in music and podcasts. Thus, they can be a pleasant way to see ads.

Social media

On social media, ads are targeted. They are based on user information. Therefore, they are more relevant and less intrusive.

Digital out of home (DOOH)

Digital out of home places ads in busy locations. Screens in urban spaces are used. Thus, many people see them, like in public transport and shopping centers.

Tools for programmatic media

To get started in programmatic media, you'll need some important tools. This includes DSPs (Demand Side Platforms), DMPs (Data Management Platforms), and trading desks.

DSPs

DSPs help set up programmatic media campaigns. They find places to advertise through Ad Exchanges. In Brazil, well-known DSPs include MediaMath, DV360 and Verizon.

DMPs

DMPs manage data to better understand the target audience of brands. With them, you can create much more accurate media strategies. Examples of DMPs are Oracle and Salesforce.

Trading desks

Trading desks are companies that facilitate online advertising. They help advertisers advertise better, using the client's DSPs and DMPs.

Tool Function Examples DSP (Demand Side Platform) Platform that allows the buying and management of programmatic media campaigns MediaMath, DV360, Verizon DMP (Data Management Platform) Data management tool for better knowledge of the target audience Oracle, Salesforce Trading desk Company specializing in programmatic media operations, acting as a consultant and operator -

Pros and cons of programmatic media

Programmatic media brings significant advantages for brands. It allows for precise targeting of ads. This means messages reach the target audience accurately. Another benefit is better budget allocation. This prevents unnecessary spending and ensures a better ROI.

A significant advantage is being able to monitor and optimize campaigns in real-time. This means making adjustments whenever necessary to improve results. Additionally, media buying is simpler and faster since many processes are automated.

However, programmatic media also brings challenges. To use it, it is necessary to invest in technology and professionals with specific knowledge. This is because management requires technical skills and a certain financial investment. The protection of user data is also an important concern. It is essential to follow data protection laws to ensure consumer privacy.

Pros of Programmatic Media Cons of Programmatic Media Greater precision in ad targeting Need for investment in technology and specialized teams Greater efficiency in budget allocation Concern for the privacy of user data Greater monitoring and real-time optimization capability Greater agility and simplification of the media buying process

The choice to use or not use programmatic media depends on balance. Thus, companies can leverage the pros. At the same time, they face the challenges head-on. This results in an efficient, focused, and secure digital advertising strategy.

Targeting strategies in programmatic media

Programmatic media uses strategies to reach the right audience efficiently. Let's look at some techniques that work well.

Content semantics

Content semantic targeting makes your ad appear on the right pages. For example, if you sell wedding decorations, your ads will be shown on wedding sites. This increases people's interest and the success of the advertising.

Website whitelist

With the whitelist strategy, we select trustworthy sites for our ads. This helps maintain our brand's safety. It also prevents ads from being seen in bad places.

Retargeting

Retargeting uses data from people's online behavior. Thus, we can show specific ads to those who have already visited our pages. This reminds consumers of our product or service, increasing the chances of purchase.

Benefits for advertisers

Programmatic media brings many advantages for advertisers. An important benefit is reaching the right audience better. This is possible because we use data and algorithms for precise segmentation. Thus, we spend our advertising money more effectively, avoiding losses and improving our results.

With it, we also have better control and real-time adjustment of our campaigns. By seeing metrics about how our advertising is performing, we can adapt our strategies. This constant adjustment helps to maximize what we do.

And finally, another gain is the speed of buying digital ad space. This simplifies the negotiation process and ensures our ads reach where they should automatically. With this, we can act faster in a constantly changing market.

To simplify, programmatic media completely changes our way of investing in digital media. It gives us more control, efficiency, and precision in our campaigns. It’s a tool that cannot be missed if we want to achieve our marketing objectives intelligently.

Benefits for publishers

For website owners, programmatic media makes it easy to monetize ad spaces. This is because their ads are easier to find on platforms. Thus, the site can earn more by selling its spaces to a larger audience.

With programmatic media, ads can be shown to people who are genuinely interested in them. This improves user experience. And, of course, this makes ad spaces even more valuable.

Sites also learn a lot about who visits them. This helps to continually enhance. After all, you can know even more about your audience and offer them what they truly want.

Benefits for Publishers Description Easy monetization Your inventories are listed more easily by programmatic platforms, ensuring a steady income. Ad targeting Ability to deliver more relevant ads to your users, improving audience experience. Insights about the audience Gaining valuable data about visitor behavior that can be used to enhance content and monetization strategy.

Programmatic media what is

Programmatic media is a technique in digital marketing. It uses technology to buy and display ads on the internet. This allows brands to find their target audience accurately, using their resources better.

Through it, companies benefit from behavioral data and advanced algorithms. This helps show ads at the right time, to the right person. And does all this automatically, providing more hits and control in campaigns.

It combines technology with data intelligence. Thus, it becomes a great ally in achieving marketing and advertising goals more efficiently and measurably.

The difference between programmatic media and display

Banners are a type of display media. However, programmatic media is not limited to them. Programmatic media uses an automated method to buy and sell advertising spaces. Display is just one type of ad in this method. There are others, like video, native ads, and social media.

Programmatic Media Display Media Automated method for buying and selling advertising spaces Banner ad format on websites and applications Uses technology and algorithms to enhance targeting and delivery of ads Displays graphical ads in standard formats in specific positions on a page Allows for greater precision in reaching the target audience and optimizing advertising budget Offers broad reach but lower targeting and greater competition for spaces Includes various ad formats, such as video, native ads, audio, and social media Limited to the banner format, which can be static or animated

Metrics and campaign analysis

Programmatic media helps closely monitor the success of our campaigns. With it, we see metrics such as impressions, clicks, and much more. This gives us the opportunity to adjust our strategies in real time to achieve better results.

With these tools, we analyze important metrics. They indicate whether our ads are effective, considering everything from impressions to conversions. This deep analysis allows us to improve our investment, optimizing how our ads are displayed.

Another strong point is the ability to adjust the campaign while it's happening. We see how the audience reacts and can shift focus to what works best. This flexibility is key in programmatic media, improving campaign success.

FAQ

Q: What is programmatic media? A: Programmatic media is an advanced way of doing online marketing. It automates the buying and displaying of ads on the web. This helps brands reach their target audience more directly and effectively than usual.

Q: What are the main features and objectives of programmatic media? A: It aims to automate the purchase of online advertising spaces. It also seeks to improve how ads reach the right audience without overspending. This way, brands make better use of their advertising money and achieve positive results. The media also collects user data, helping to create ads that are more tailored to them.

Q: How does the ad buying and selling flow work in programmatic media? A: It operates through Ad Exchanges, connecting advertisers with ad spaces. All bidding is in real-time, with purchases based on thousands of impressions (CPM). Everything is done by programs that analyze data and choose the best places and times to show ads.

Q: What are the main platforms and systems involved in programmatic media? A: In programmatic media, we use DSPs to buy spaces and manage campaigns. DMPs are responsible for collecting and analyzing user data. SSPs help those displaying the ads online to sell their spaces. Trading Desks are companies that assist in the operation of ad purchases. And Ad Exchanges are real-time negotiation platforms.

Q: What are the advantages of programmatic media? A: Its advantages include: targeting ads more precisely, using advertising money more efficiently, having better control and more positive results in campaigns. It also allows seeing and improving results in real-time, as well as facilitating the purchase of advertising space.

Q: What are the main ad formats in programmatic media? A: The most common formats are display ads, video, native ads, audio, social media, and DOOH. Each type serves a goal, giving brands multiple ways to communicate with their audience.

Q: What are the main tools used in programmatic media? A: The media uses DSPs to buy ad space automatically. DMPs analyze user data. And trading desks help operate campaigns in a specialized way.

Q: What are the main benefits of programmatic media for advertisers and publishers? A: Advertisers gain more accuracy in reaching their target audience, save on ad budgets, control and improve their campaigns easily and quickly. Publishers find it easier to sell ad space, which ensures a continuous income for their page.

Q: What are the main targeting strategies in programmatic media? A: Among the strategies are choosing to advertise only in content related to yours, using whitelists of sites that interest your campaign, and re-displaying ads to those who have already shown interest. This makes ads more relevant to those who see them.

Q: What metrics and campaign analyses are available in programmatic media? A: You can measure various things: how many times your ad was viewed, how many times people clicked, whether they bought something after seeing your ad and how much it cost to acquire each new customer. This helps to continually improve the way of advertising, aiming for greater results.