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What is Programmatic Buying?

Programmatic buying automates the purchase of ad inventory using software. Learn how it works and how to get started.
Brief Definition

Programmatic buying is automated media buying using software (DSPs) to bid on ad inventory across exchanges in real time.

Understanding Programmatic Buying

Programmatic buying replaces manual IOs with automated auctions and data‑driven decisions. DSPs evaluate each impression in milliseconds using audience, context, and predicted value. The appeal is scale with control—frequency, geo, and brand safety settings keep delivery healthy. Clean measurement ensures you can tell signal from noise as you test. Catalog feeds now bring product‑level relevance to display and CTV, extending what already works on social.

Structure matters. Start with focused geos and a handful of audiences so you learn quickly. Keep naming, taxonomy, and pixels consistent so reporting is comparable. Use allow/block lists to maintain quality while you explore. Feed health and creative clarity remain the biggest drivers of downstream conversion.

Why Programmatic Buying matters

Programmatic buying matters because it connects your audiences to inventory you can’t reach in walled gardens alone. You gain new surfaces to test while keeping control over frequency, placements, and safety. Combined with first‑party data, it can find incremental customers at sustainable costs.

  • Scale: Access huge inventory from one platform.
  • Control: Frequency caps, geo, and brand safety.
  • Data: Activate first-party audiences and product feeds.

How Programmatic Buying works

Programmatic buying works by configuring campaigns in a DSP that participates in real‑time bidding auctions across exchanges. The system scores each impression against your targeting, then bids and serves creative on wins. A clean pixel/CAPI stack grounds attribution so optimizations reflect true value. Frequency caps and pacing settings manage experience and spend. Allow/block lists and contextual filters maintain safety. Bringing product feeds enables dynamic creative for more relevant delivery across display and CTV.

Related Terms
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FAQs
Do I need an agency for programmatic buying?
Not required—many DSPs are self-serve; consider partners for speed, but in-house programmatic buying is feasible with training.
Is programmatic buying only for display ads?
No—programmatic buying works for display, video, native, audio, and CTV across the open web.
How much should I budget for programmatic buying?
Start with 10-20% of your total media budget for programmatic buying to test and learn before scaling further.
What's the difference between programmatic buying and social ads?
Programmatic buying accesses open web inventory via exchanges and DSPs; social ads run within walled-garden platforms like Meta and TikTok.
How do I measure success in programmatic buying?
Measure programmatic buying success using ROAS, CPA, incrementality tests, and viewability; compare performance against walled gardens to assess contribution.

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