Programmatic advertisement is complex for beginners to understand due to involvement of a crazy amount of middle players, exchanges, and lot more. Here's is an effort to simplify your understanding on Programmatic Advertisement

1. Programmatic Ads
The Future of Advertising
Part 1

2. PROGRAMMATIC AD
YES ! I UNDERSTAND

3. What Is Programmatic Ad ?
- Its Automated Media Buying, Softwares take control
- Uses Artificial Intelligence & Real Time Bidding (RTB)
- Highly Efficient, Removes human errors
- It's about buying the target customer rather the ad slot
- Deep personalisation & targeted ads

4. Traditional Ad Buying Process
- Digital Ads are bought & sold
manually by ad buyers &
publishers
- Buying process involves RFP,
sales people, change orders-All
manual
- Media buyer negotiates,
purchases & monitors
campaigns through publishers
- Difficult to track all touchpoints
- Digital ads are bought & sold
automatically through softwares
- Buying, comparision, placement- All
automatic
- Buying mostly involves RTB- Real
Time Bidding. Ad inventory is bought
in real time
- Transparent- It’s all there on the
dashboard

5. RTB- Real Time Bidding
- It’s a type of programmatic ad buying
- RTB refers to the purchase of ads through real-time
auctions
- Sellers (Publishers) makes the ad space available for
Buyers (Advertisers). Buyers bid for that ad space.
- Its for Display ads only

6. What is Automated in Programmatic?
- Ad Buying (Ad Inventory)
- Ad Placement
- Optimisation

7. What Is an Ad Inventory ?
- Ad Networks (Ex- Google Display network)
- Ad Exchanges
- Direct Publishers
Huge Ad Inventory

8. Programmatic Ad- Schematic

9. Key Stakeholders in Programmatic Marketing
DSP- Demand Side Platform SSP - Supplier Side Platform
Brands or
Agencies
Ad Publishers
(Ex-Blog sites)
DMP- Data Management Platform Connects DSP & SSP
API- Application Program Interface
1 2
4
3
Software Software- Market Place

10. What is DMP (Data Management Platform)
- Houses Audience and Campaign Data
- Connects with publishers, websites and
apps on which advertisers buy ads
- DMPs Basically “speak with” DSPs

11. Programmatic Vs Google Display Ad
- Uses Google Display Network Only
(Adsense)
- Audience base is large
- Just YouTube for Video Ads
- Uses only GDN inventory
- Charges on campaign delivery . No
commitment to minimum spent.
- Bid adjustment happens in hours
(2-3)
- CPC, CPM, CPA, CPI available
- Uses Ad network, ad exchanges &
Direct publishers
- Audience base is huge
- Lot of other inventory
- Can buy GDN (through exchange) or
other networks
- DSPs have fees involved,
commission percentages, min fund
criteria (100$, 5000$)
- Real time bid adjustment
- Only CPM

12. Where Can We Show Programmatic Ads ?
Ad space in online display
Social media advertising
Mobile
Video
Television markets

13. A Click on a
Web Page
Publisher of that page
puts the ad slot for
auction
All happen within millisec of page loading
Customer interacts with ad
Ad is delivered
to customer
The highest bidder wins
to get the ad slot & show
impression
Ad marketplace holds
auction within advertisers
competing for that ad slot
Programmatic Ads- How They Work ?

14. State of Programmatic Ad : Global Vs APAC

15. APAC- A Closer Look