How does programmatic media buying work?

Programmatic advertising is a digital marketing technique that involves the use of automated software to purchase and display ads. The programmatic advertising industry has a wide range of publishers that are available to purchase ad space from. These publishers include sites such as social media, news sites, and blog sites. The ads run on these websites can be either video or still images, depending on what the advertiser wants when they’re running their campaign.

What is programmatic media Buying?

Programmatic media buying is a subset of programmatic advertising. Programmatic media buying is the process of using programmatic advertising to buy and sell ad space more efficiently. This can be done through the use of automation, data, and real-time bidding. Programmatic media buying allows advertisers to buy ad space on websites and apps using a set of rules set by an advertiser to automate their ad buys. Programmatic ads are targeted to specific audiences and automatically bid up against other ads in the same area. Google’s AdWords platform is one of the most common examples of a programmatic advertising system as it allows users to target their chosen audience with an ad based on user history.

Some companies have started using programmatic media buying for more than just digital marketing campaigns. They are also using it for their TV ads as well as their print campaigns.

programmatic media Buying

Types of programmatic media Buying:

The process of programmatic media buying is categorized into three types;

Real-Time Bidding:

As the name suggests, it is a real-time auction, which is open to every advertiser. In Real-Time Bidding (RTB) where advertisers bid for the same spot and the ad with the highest quality score will win.

Private Marketplace:

This is the same concept as an open auction but here marketers can access the private marketplace (PMPs) on an invite-only basis.

Programmatic Direct:

Here Media inventory is sold at a fixed CPM (cost per mile) to one or multiple advertisers

Cost for Programmatic Advertising:

When calculating the cost for an ad spot, you typically work with a percentage of the site’s revenue. Every site has different advertising rates depending on their best placement and other factors, so it is difficult to calculate an average per-click or per-impression cost.

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