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  • Programmatic buying is gaining weigh in advertisers budget

    4 January, 2017

    The market is movig to the automation of the purchasing process of digital advertising assets. With programmatic buying, the media companies can buy and sell online advertising in an automated way. This system allows simultaneous and real-time access to global inventories (Ad Exchanges, support order and websites) with hundreds of thousands of advertising options per second in the same control panel, with defined audiences, that adapt to what you are looking for each advertiser.

    According to the Study of Advertising Investment in Digital Media of 2016 by IAB Spain, an association that represents the advertising, marketing and digital communication sector in Spain, digital media investment in both desktop and mobile programming almost reach to 50 million euros, 25% more than in 2015.

    Programmatic buying is gaining weight in advertisers budget

    Investment in programmatic buying in display and video in front of search

    In a broken down way, the investment in programmatic advertising represents more than 14% of the total display ads with 36.9 million euros of investment and more than 17% of the total video ads that represents 12.3 million euros. These trends are on rise, as the investment in display has increased almost 20% compared to previous year and a 50% more in video advertising. This could lead to an increase in banner ads vs. search and keyword ads in the coming years.

    Even so, in 2016, the biggest portion of the pie is for investment in Search, defined by IAB Spain as sponsored links for keywords, as it accounts for more than 45% of the total investment in digital advertising, 345 million euros adding all devices, 10% more than the previous year.

     

    Advantages of the programmatic buying

    flecha Allows target specific customers thanks to algorithms that take into account the behavior and interest of the user in the digital space.

    flecha It serves as a holistic channel in which advertisers, agencies, support and Adserver can interact

    flecha It is automatic, which means that you save work, time and money in order to dedicate it to the optimization of campaigns.

    flecha It allows to reach many more digital media channels than manual purchase, so advertisers can bid and ensure they buy at the best price, and with this finally optimize his media buying spending.

    This does not mean that traditional digital advertising sales will disappear. But the facilities provided by the programmatic buying will suppose more and more businesses implement it in their media buying strategies. And, according to eMarketer, it is estimated the investment in automated buyed display ads will account a considerable increase this year. In fact, the marketing managers are convinced that this system will be the future of digital marketing and the advertising space will be purchased mainly programmatically.

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