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Programmatic Advertising Guide
Master programmatic display advertising with DSPs, RTB, and automated media buying.
Programmatic Overview
Programmatic advertising is the automated buying and selling of digital advertising using technology and data. It represents 91% of all digital display ad spending in 2026.
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Market Size (2026):
├── Global programmatic spend: $725B+
├── Display programmatic: 91% of display
├── CTV programmatic: 78% of CTV
└── Audio programmatic: 65% of digital audio
Key Advantages:
├── Efficiency: Automated buying at scale
├── Precision: Data-driven targeting
├── Real-time: Instant optimization
├── Scale: Access to billions of impressions
└── Transparency: Granular reportingThe Ecosystem
Understanding the programmatic supply chain.
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The Programmatic Flow:
Advertiser
↓
DSP (Demand-Side Platform)
↓ Bid request
Ad Exchange / SSP
↓ Auction
Publisher
↓
User sees ad (< 100ms total)Key Components
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Demand Side:
├── Advertisers (brands/agencies)
├── DSPs (buying platforms)
├── DMPs (data management)
├── Trading desks
└── Ad servers
Supply Side:
├── Publishers (websites/apps)
├── SSPs (selling platforms)
├── Ad networks
├── Ad exchanges
└── Header bidding wrappers
Data Layer:
├── First-party data (owned)
├── Second-party data (partnerships)
├── Third-party data (purchased)
├── Contextual data
└── Identity solutionsBuying Methods
Different approaches to programmatic buying.
Real-Time Bidding (RTB)
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Open RTB:
├── Access: Open to all buyers
├── Pricing: Auction-based
├── Inventory: Remnant/general
├── CPMs: $0.50-$5 typical
└── Use case: Scale/reach
Process:
1. User loads page
2. Bid request sent (user data, context)
3. DSPs evaluate and bid
4. Highest bid wins
5. Ad served (< 100ms)Private Marketplaces (PMP)
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PMP Characteristics:
├── Access: Invitation only
├── Pricing: Floor price + auction
├── Inventory: Premium placements
├── CPMs: $5-$25 typical
└── Use case: Brand safety, quality
Benefits:
├── Pre-negotiated pricing
├── First-look at inventory
├── Known publishers
├── Better brand safety
└── Relationship-basedProgrammatic Guaranteed
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Guaranteed Deals:
├── Access: 1:1 negotiated
├── Pricing: Fixed CPM
├── Inventory: Reserved
├── CPMs: $10-$50+ typical
└── Use case: Premium campaigns
Characteristics:
├── Guaranteed impressions
├── Fixed pricing (no auction)
├── Priority access
├── Direct relationship
└── Full transparencyKey Players
Major platforms in the ecosystem.
DSPs (Demand-Side Platforms)
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Major DSPs:
├── Google DV360
│ ├── Google ecosystem integration
│ ├── YouTube native access
│ └── Best for: Large advertisers
├── The Trade Desk
│ ├── Independent, transparent
│ ├── Strong CTV/audio
│ └── Best for: Agencies
├── Amazon DSP
│ ├── Amazon shopper data
│ ├── E-commerce attribution
│ └── Best for: E-commerce
├── MediaMath
│ ├── Omnichannel focus
│ ├── Custom algorithms
│ └── Best for: Enterprise
└── Criteo
├── Retargeting specialist
├── Commerce focus
└── Best for: E-commerce retargetingSSPs (Supply-Side Platforms)
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Major SSPs:
├── Google Ad Manager
├── Xandr (Microsoft)
├── Magnite
├── PubMatic
├── OpenX
└── Index Exchange
Ad Exchanges:
├── Google AdX
├── OpenRTB
└── Private exchangesBenefits & Challenges
Weighing programmatic advantages and considerations.
Benefits
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Efficiency:
├── Automated buying at scale
├── Real-time optimization
├── Reduced manual work
└── 24/7 operation
Targeting:
├── Audience precision
├── Cross-device reach
├── Contextual alignment
└── Behavioral signals
Measurement:
├── Granular reporting
├── Attribution modeling
├── A/B testing
└── Real-time insightsChallenges
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Brand Safety:
├── Ad fraud risk
├── Inappropriate content
├── Brand adjacency issues
└── Requires vigilance
Transparency:
├── "Black box" concerns
├── Hidden fees
├── Complex supply chain
└── Viewability variance
Technical:
├── Learning curve
├── Integration complexity
├── Data management
└── Creative requirementsGetting Started
Launch your first programmatic campaign.
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Week 1: Foundation
├── [ ] Select DSP partner
├── [ ] Set up pixels/tags
├── [ ] Define audience segments
├── [ ] Prepare creative assets
└── [ ] Establish measurement
Week 2: Launch
├── [ ] Create campaign structure
├── [ ] Set targeting parameters
├── [ ] Configure brand safety
├── [ ] Launch with test budget
└── [ ] Monitor initial delivery
Week 3+: Optimize
├── [ ] Analyze performance
├── [ ] Refine targeting
├── [ ] Test creative variations
├── [ ] Scale winning strategies
└── [ ] Expand to new inventoryPro Tip: Start with PMPs before open exchange. The higher CPMs are worth it for learning—you'll get quality inventory, better brand safety, and cleaner data to understand what works.