What is Programmatic Advertising? Il Programmatic Advertising it is a particular type of communication through which the online user is reached according to his behavior and, above all, according to his interests.
In other words, it basically consists of buying the space dedicated to advertising on sites and platforms using specialized software. But let’s take it easy.
How does Programmatic Advertising work?
The basics of this powerful tool are only two: data and audience.
These are two closely and intrinsically linked factors, there can be no one without the other in order to make the most of the Programmatic adv.
Everything starts with the data. They are extracted from algorithms during our browsing experiences, such as our purchases and our readings. In other words, from all our online activity. This huge amount of data is processed to get audiences,which are nothing more than clusters of people united by a particular interest and sociodemo data.
Once the audience has been defined, all that remains isto show andusers the potentially most suitable content. .
Ultimately, then, the user, during his stay online, will be shown for example an article about sports shoes. This is because he had previously gone in search of a pair of sports shoes or because he read content related to the world of sport. In conclusion we can therefore say that he could be considered potentially interested in buying a beautiful pair of shoes.
As a result, the user will not perceive this communication as intrusive as it reflects his tastes and interests: we will therefore have the right ad, in the right place and at the right time.
What are the tools of the Programmatic Adv?
There are three instruments that compose the Programmatic: SSP, DSP, and DMP.
The Supply Side Platform (SSP) is the software used by publishers to make the advertising space of their websites available to potential buyers. It is for all intents and purposes the exhibition space to be for all those who are willing to sell.
The DSP (Demand Side Platform) is the other side of the coin: it is the software that serves to buy the same advertising space that is put up for sale by publishers thanks to the SSP.
The Data Management Platform (DMP) is, again as the same name says, a platform that aims to aggregate data, sort it and use it to improve the purchase or sale of online advertising spaces.
Programmatic advertising and a few numbers in hand
Programmatic spending is constantly increasing all over the world and Italy is no exception. The total investment in Italy in 2012 was around 7 million euros. In 2019 we reached 585 million euros and represents about one-fifth of the total of all spending on digital advertising.
The video format has surpassed traditional banners for the first time, a clear sign that even how we experience advertising is changing.
You’re wondering who the main protagonists in this world are. On the sell-side we have in order: Google property AdExchange, New, AppNexus, New10014, Rubicon, Smartadserver property, OpenX property. Side buy-side Instead: DV360, Amazon, Verizon, The Trade Desk, Mediamath, New and Xandr (AppNexus).
Hoping to have made it clear to you at best what programmatic advertising is, we invite you to deepen the topic with our experts here: