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What is programmatic advertising?

● The short answer

Programmatic advertising is the automated buying of ad space across thousands of websites, apps, streaming TV services and audio platforms, usually through a demand-side platform that bids on each impression in real time. It lets a business reach a defined audience almost anywhere online. It works best for awareness and retargeting with clear goals, and it wastes money fast without placement controls.

Key takeaways

  • Programmatic is automated, real-time buying of ad impressions across sites, apps, CTV and audio.
  • DSPs bid on individual impressions using location, context, audience and device targeting.
  • Contextual targeting is a privacy-friendly option that is gaining use.

How programmatic works

Programmatic replaces the old model of calling a publisher and negotiating an ad buy. Instead, software does it in milliseconds:

  1. A person opens a web page, app or streaming show with ad space.
  2. The publisher's supply-side platform (SSP) offers that impression for sale.
  3. Advertisers' demand-side platforms (DSPs) evaluate it against their targeting: location, audience, context, device, time.
  4. The highest qualifying bid wins, and the ad is served before the page finishes loading.

Google's Display & Video 360, The Trade Desk and Amazon DSP are well-known DSPs. Google's own Display Network is a simpler, self-serve cousin that runs inside Google Ads.

The how is where we come in.

What we walk through with you, for your business:

  • What you can buy programmatically
  • The targeting options
  • Where programmatic goes wrong
  • Our take

Every business is different, so the plan is too. Tell us where you want to show up and we will show you what it takes.

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More questions

How much does programmatic advertising cost?

Programmatic is usually priced per thousand impressions (CPM), and rates vary widely by format, audience and inventory quality. Display tends to be cheapest, CTV the most expensive. Many DSPs and partners also have minimum spend levels. Ask for the media CPM and every fee separately so you can see what actually reaches publishers.

Is the Google Display Network programmatic?

Yes, in the sense that impressions are bought automatically through an auction. It is simpler and self-serve inside Google Ads, with access to Google's partner sites and apps. Full DSPs offer more inventory, including premium publishers and CTV, plus more control over deals and data. Many small businesses start with Google's network.

Sources

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