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5 Major Myths about Programmatic Buying in Latin America

This post is also available in: Spanish

Programmatic has made a major splash in the advertising industries of the world and Latin America is no exception to this. But with all the coverage, hype and usage, certain notions have come up that are affecting people’s perceptions about the tactic. And lots of times, these notions come from people with scant experience in the area. Having worked with MediaDesk DSP since we started developing the product in 2012, I’ve developed a pretty solid idea of what’s fact and fiction about programmatic—all based on the hundreds of campaigns we’ve run for clients. As such, below I tackle a few of the erroneous perceptions about programmatic and explain the realities.

#1 Programmatic Inventory Is All Remnant
This is actually not true. Lots of quality inventory on high-trafficked sites is available for advertisers who wish to reach Latin American Internet users. Remnant inventory is a part of what’s out there, but it is far from the only option.  For example, MediaDesk’s recent certification by Google opens up some great YouTube inventory for brands and agencies that understand how wildly popular online videos have become among Latin American Internet users. In the end, what matters is the ability to bid for inventory that is relevant to a campaign’s objectives.

#2 Programmatic and RTB Are the Same Thing
Programmatic simply refers to buying online advertising impressions via a platform as opposed to buying them manually from a selection of Web sites. However, RTB (real time bidding) refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a webpage to load. The price of impressions is determined in real time based on what buyers are willing to pay, hence the name “real-time bidding.” Regardless, the goal is to maximize efficiency and better allocate the ad spend for a given campaign.

#3 Programmatic Is Cheap
DSPs like MediaDesk can help lower costs with online media buying by removing humans from part of the process. However, the true boost in ROI from programmatic comes from using a more strategic and efficient way to buy media rather than saving in fees or intermediary costs. This efficiency leads to less waste in target clients and thus can impact ROI. MediaDesk can help with this process through its vast array of data on Latin American Internet users that allows you to buy by audience.
Now, even with this increased efficiency, clients may find that they need to make higher bids to ensure a better performance with campaigns. That’s the nature of RTB—users are bidding for impressions and certain customer targets have a higher demand—and a subsequent higher price for the impressions to reach them.

#4 Programmatic Is Just for Performance
Because of its superior targeting capabilities and the fact that you can by audiences leads some brands and agencies to think of programmatic strictly as a performance tactic: leads, conversions, etc., nothing more.
However, programmatic is also a strong branding tool. You can occupy high-visibility positions where the data shows your audience goes, thus increasing awareness. In addition, programmatic buying tools allow you to see how the audience interacts with the brand and the results when you vary different messages to gauge engagement.

#5 Publishers Lose Money with Programmatic Inventory
Publishers seem to think that the real-time bidding system can drive down the prices for their inventory. However, publishers can take a look at their ad positions, determine the audience that will be reached via those positions and set a price that corresponds to their value with the supply side platforms (SSP). As such, programmatic can actually help publishers drive revenue as opposed to losing it.

Contact us to get a free demo of MediaDesk—the leading programmatic platform in Latin America—and get a direct sense of the reality of programmatic buying and how you can leverage it for your brand or clients.

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