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Programmatic advertising: what is it, how does it work?

Programmatic advertising in our country reached a value of around 788 million euros, with a growth of 10% compared to the previous year.

This is what the data from the Internet Media Observatory of the Politecnico di Milano announce, also confirmed at the beginning of 2023 by a more than rosy trend in the sector, which will probably close with a variation of %-10% more than in the same year 2022.

Percentages, values ​​and volumes pakistan phone number data of investments: let’s start from here to understand the magnitude of this trend in digital advertising, considered, until a few years ago, as a gamble.

But what is programmatic advertising ?
Can it be considered a resource to invest in, even for medium-sized companies?

Let’s be clear.

  • Programmatic Advertising: What It Is and How It Works
  • From Audience Segmentation to Media Buying: How Programmatic Advertising Works
  • Programmatic: evolution and growth, also in Italy
  • Programmatic Advertising in the Post-Cookie Era: From Objective Limits to Surprising Opportunities
  • Connected TV: the future of programmatic advertising also lies here

Programmatic advertising: what is it?

The right message to the right person fundraising, 5 pillars to build lasting relationships at the right time: if we wanted to sum up the essence of programmatic advertising in one sentence, this would probably be the most appropriate.

In fact, the term “programmatic advertising” defines a type of digital advertising that relies on the automated purchase and sale of advertising space through the use of platforms dedicated to the purchase of impressions and spaces.

Advanced audience profiling and segmentation , auction-based ad space purchasing , real-time bidding , but not only phone number us that: programmatic advertising represents, by its very nature, one of the most advanced, innovative and effective ways of advertising today.

The reason is easy to understand and can be attributed to one of its peculiarities, namely automation .
From defining target audiences to paying for impressions: everything is done through platforms where artificial intelligence and machine learning algorithms are the central engine.

Campaign effectiveness and efficiency, ROI optimization, detailed analysis and reporting are just some of the aspects that distinguish a marketing campaign. Programmatic advertising : What makes it most interesting for brands and advertisers is its degree of visibility and diffusion, especially with the advent of new digital technologies.

Programmatic Advertising: How It Works

The stakes are many, but at the heart of it is essentially the meeting between supply and demand. In programmatic advertising, as in any advertising model, we have two key players:

  • publisher or editor who makes his network and spaces available;
  • advertiser or advertiser who decides to invest in purchasing such space for their campaigns.

However, the picture is not so simple: for a programmatic advertising campaign to be implemented, other platforms are also needed.

Let’s look at them in detail.

Programmatic Advertising Platforms

DMP (Data Management Platform)
Profiled and performing audiences are the first step to winning ADS campaigns. This is precisely where DMPs come into play , i.e. platforms that collect , normalize , analyze and manage a substantial amount of first-party and third-party data . The goal is to enable the creation of qualified audiences and detailed profiles of potential customers through the use of artificial intelligence algorithms. A DMP makes these anonymous customer profiles available to other tools, particularly in media buying activities.

DSP
Among the tools with which a DMP communicates we find the DSP, or Demand Side Platform. As its name suggests, a DSP automates the purchase of advertising space while allowing the advertiser to optimize resources.
Indeed, it collects the rates of the different networks in a single environment and allows brands to refine their target selection.

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