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.

Targeting

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

1. 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.
2. Allows you to split up your targeting across platforms/placements and optimize accordingly
3. 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