What is Programmatic Marketing & Factors Associated

Programmatic Marketing

Ad Space Buying

Programmatic marketing or Programmatic display advertising is a system used for Automated Bidding on Advertising Inventory (Media Spaces, Audience, and others) in Real Time basis by the specialised digital marketing agencies

It involves Real Time Bidding (RTB) & Non-Real Time Bidding (Non -RTB) to monetize your ads better

Programmatic buying helps to show Ads to Specific Customers in a Specific Context and costs fraction of the Cost of Direct Buying and saves time avoiding manual intervention. Along with buying Ad Spaces, it helps in placement and Optimization of media inventory

Basics of Working:

programmatic marketing agencies with their expertise help you drafting the right Ads and campaigns to manage them and generate the optimum results that you seek

Below are the basics of programmatic flow:

  • Step 1: Audience Clicks on the Webpage
  • Step 2: Publisher of the page puts the Ad Impression up for Auctioning in the Ad Market Place
  • Step 3: Advertisers participate in the Auction competing for the Impression
  • Step 4: Advertisers Bid (Real Time) & one who Bids highest for the impression wins the Right to Place his Advertisement/ Relevant Ad
  • Step 5: Consecutively the Ad is placed delivered/ shown on the screen of the customer
  • Step 6: Customer Clicks on the Ad and lands where desired for Sales/ Profits

Note: The Ad runs only in the selected Ad Spaces which are selected for Programmatic Marketing

Advantages real time bidding advertising:

  • Allows Advertiser to buy the Ad Space in Real Time without pre-negotiating the deal
  • Advertiser pays only for Relevant Impression
  • Advertiser can sign up for a Min. number of impressions/ Min. budget (can select based on requirement)
  • Can buy Digital Media across Publishers
  • Individual Customers can be targeted using their cookies/ details and also it allows advertisers to predict the behaviour based on search patterns thus participate in Auction to show the relevant Ads to relevant customers
  • Thus, Ads can be targeted to most likely websites’ customers are expected and even at the expected time of engagement
  • It helps programmatic marketing campaigns improve their performances hence better ROI
  • Programmatic Marketing costs fraction compared to Cost of Direct Buying

Programmatic Using Via:

  • Audience: User based Demography
  • Behaviour: What actions have users taken in past to predict the future
  • Context: Ads can be run depending on Subject/ Topic of content consumed
  • Intent: Keyword the audience has used to search / products viewed
  • Location: Using GPS in mobile devices

How are the Programmatic Ads Bought?

  • Based on CPM (Cost Per 1000 Impressions)
  • Based on CPC (Cost Per Click)
  • Based on CPA (Cost Per Action)
  • Based on CTR (Click Trough Rate)

Note: Pricing depends on Device, Industry, Format, placement of Ad on Page

In general CPM ranges between $0.50 to $2 v/s $10 for Direct buying, because of which Reach increases by 10 – 20 times effecting conversion rates in a positive way

2 Ways of Purchasing Programmatic Ad Space:

  • Real Time Bidding (RTB) – Price is determined by the Highest bidder
  • Non – RTB – Here the Rates/ impressions/ Budget etc are fixed

Also, can be categorized as follows:

  • Reserved – Ad space is guaranteed to show Ads when customers are on the site. Also, known as Automated Guarantee. This generally Proffered
  • Un-Reserved – Here, excess inventory is used to satisfy the request. Also, known as Fixed

Every Advertiser has access to DSP

Ad Blockers

Because of increase in the Programmatic Marketing there has been an increase in Ad Blockers. It stops targeting the Audiences intricately

Why customers have them on their devices?


  • Interruption – Since the Ads are interrupting the customers search experiences on the internet. Customers are feeling not happy about it
  • Too Many Ads – Increase in the number & frequency of Ads visible all around
  • Privacy – Since customer search patterns, details based on interest, behaviour etc is studied too much inn detail
  • Security – Data Protection

Ads PR

Countries Spending Heavily on Programmatic Marketing:

  • US
  • UK
  • Japan
  • Canada
  • Other European counties
  • India is comparatively new in the game. With experience and the knowledge of Programmatic Ad Budget expected to grow

Tools Used for Programmatic Marketing:

There are various tools used for the same like Adobe Marketing Cloud, Double Click, AdRoll, Centro etc.

Platform selection depends on the level of customization allowed, Data integration, Transparency, Easy-to-Use

Programmatic Marketing helps Create our Audience who can be marketed on a continuous basis to not only make them Aware about our Products/ Services, but also, we can run Specific Campaigns to Specific set of Audiences, saving precious time. The data received here can also be used for Cross-Channel Marketing across channels, sites, devices getting the most ROI helping to achieve our objectives. Making our Digital Strategies more effective and credible

It can be used for Branding purposes to Run Campaigns for increasing Engagement to may be remind our precious audiences of the action that they wanted to take in regards buying a product/ inquiring for your service (Leads) to increase Sales, possibilities are endless

Hope this article helped you understand the basics of programmatic advertising. Don’t forget to follow us on our facebook page. We will be coming up with details of programmatic in our upcoming articles

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