What is programmatic purchasing

To understand what programmatic media buying is, we must first understand that there has been a significant change in the purchasing of advertising space within digital media . 

Since approximately 2008, digital advertising can be purchased in real time with the aim of impacting a very specific consumer profile and doing so at the precise moment in which the consumer may be interested in purchasing a product or contracting a service.  

Previously, digital advertising was based on the pairing of relevant ads on relevant sites, but with programmatic purchasing that has changed and now what is sought is to achieve better segmentation.

Therefore, what we are talking about is a way to buy online advertising space in an automated way . By taking advantage of the platforms’ algorithms, companies can access hundreds of advertising options that fit their needs. 

What are the business models for this type of purchase?

We can find many examples of programmatic purchasing, because it is a type of advertising that companies from all sectors resort to. However, there are some in which this phenomenon is especially relevant.

In Spain, 15% of programmatic advertising is contracted by companies in the automotive sector . Closely followed by brands in the retail sector , companies in the travel and tourism sector, the finance sector and, finally, telecommunications. In addition, there is an increase in investment in the insurance and energy sectors.  

A large part of the campaigns contracted in digital media are completely programmatic or, at least, partially so. On the other hand, there are fewer and fewer brands that discard this form of advertising.

Advantages of using programmatic purchasing

• Segmentation:  guarantees that the ad will be seen exclusively by those people who fit within the target customer profile of the brand and that specific product or service. This increases the chance of conversion.

• Bid in real time:  this allows you to hire several spaces simultaneously and take advantage of the best price.

• Lower cost:  the price of this type of advertising is usually lower than that of traditional advertising, so with the same budget you can hire more advertising spaces.

• Greater coverage:  allows access to a greater number of digital media, thus increasing the visibility of the brand.

• Campaign planning:  it can be done in real time, because it can be optimized while it is active.

The programmatic purchase of advertising space is one of the simplest and most effective ways to make a brand known to its target audience and achieve a greater return on investment.