Programmatic media buying refers to ads bought through automated technology, as opposed to traditional negotiations and deals. This encompasses numerous digital channels nowadays since social or search buys can be automated. However, programmatic advertising in media buying often refers only to tactics such as digital display, video, audio, etc., separate from other channels such as search or social. The way in which programmatic ads are purchased, the types of ad placements available, and the targeting capabilities are what sets this channel apart from others and is the reason that programmatic ad spend increases year over year.*
With programmatic buys, advertisers purchase ads on a Demand Side Platform (DSP) where real-time bidding takes place. The DSP works with ad exchanges and networks that host the auctions between advertisers. From there, publishers provide available ad spaces on the Supply Side Platform (SSP) and ultimately ad auctions are won and ads get served.
Programmatic ad placements include display banners, native, video, audio, CTV and more, and these ads can appear on any website that is auctioning off ad space either mixed within their content, or on the site space around the content. This means there is expansive inventory and diverse creative opportunities that can be bought on a single platform.
Audience targeting capabilities with programmatic are significantly more robust than other biddable media platforms. Typically, advertisers have options to target based on platform online behavior, interests, lookalike technology and first party data. What sets programmatic targeting apart from social is the access to third party audiences and deals from a variety of companies.
Programmatic Concerns
Given the nature of programmatic advertising’s expansive web inventory, brand safety is the first concern. It is imperative to utilize the built-in platform settings to ensure ads are served alongside brand-safe content. It is also recommended to utilize third party verification companies to track brand safety, fraud and viewability.
With cookie deprecation looming, third party data will become less reliable since it will be harder to track user behavior across websites. This is why predictive audiences, contextual audiences and first party data is now more important than ever.
LeadLab’s Programmatic Expertise Can Help Guide You Through Programmatic Implementation & Management
The LeadLab team boasts programmatic experts that can help walk you through a customized programmatic strategy, including ad servers connections, campaign structure, recommended audience targets, as well as budget allocation.