What is Programmatic?
The use of automation, normally through a DSP, to buy and sell digital media. Programmatic is an overarching term that represents a variety of ways to purchase digital media including Real-Time Bidding and Private Marketplace buys.
How it Works
Through a Demand Side Platform (DSP), an advertiser can place a bid for a placement on the internet for their ad to show. Publishers then use a Supply Side Platform (SSP) to share what placements are available on their online platforms. The DSP & SSPs sync up in real-time to conduct the auction.
Types of Programmatic Buys
Even though Real-Time Bidding is probably the most common form of Programmatic, there are many different types of buys that can be accessed through a DSP depending on publisher inventory.
Open-Market RTB – Real-time bidding on impressions where the impressions are available to all bidders
Private Marketplace (PMP) – customized, invitation-only marketplaces that provide publishers with the ability to set aside certain ad inventory packages and sell it to a select buyer or group of buyers with an emphasis on margin management for the seller
Private Marketplace Guaranteed (PMPG) – similar to private marketplace buys except that the inventory is offered by one seller to only one buyer
Automated Guaranteed (AG) – automation of traditional digital direct sales often of publishers’ most highly valued (e.g. premium) inventory.
Automated Performance (AP) – similar to Automated Guaranteed, but for these deals campaign performance is guaranteed, rather than impressions (purchased on a CPC or CPL basis instead of CPM)
Spot Buying (SB) – happens within an exchange environment but are pre-negotiated, fixed priced
It can be tricky deciding what type of Programmatic execution is the right choice for your campaign so below is a decision tree from PubMatic to help clarify your options.
Like other digital media channels, there are several different options for targeting your programmatic buys.
Audience – utilizing demographic attributes such as gender, age, household income, education level, relationship status, etc.
Behavioral – targets consumers based on online activity
Retargeting – ads that are shown to someone based on an action they have taken on your website (i.e. viewed a page, left a product in their cart, etc.)
Geotargeting – targeting specific areas
Cross-Device – advertising to prospects across multiple digital devices based on an understanding of how and when they may be using a specific device
Contextual – looks at the category or keywords of a website page a customer is viewing and then serves them ads that are highly relevant to that content
Benefits of Programmatic
- Gives advertisers greater control over their ad placements. Previously, online ad buys were controlled by publishers leaving advertisers in the dark on exactly where their ads showed.
- Allows you to split up your targeting across platforms/placements and optimize accordingly
- Advertisers can put strict requirements over their ads such as viewability or if the sound must be turned on for a video before they pay the cost of the impressions