Programmatic Advertising
Automated purchase of digital ad space via algorithms and real-time bidding (RTB). Instead of negotiating with sites directly, a system buys impressions in real time based on target audience. Google Display, Meta, DV360.
In practice
Programmatic is the 'automated advertising machine.' You define: target audience, budget, max price per impression — and the system buys relevant impressions from hundreds of sites simultaneously. Google Display Network is programmatic. Meta Ads is programmatic. Most modern digital advertising is programmatic.
Common misconception
'Programmatic = Google Display.' Google Display is one programmatic channel. There's also The Trade Desk, DV360, and Amazon DSP. They reach sites Google doesn't — including local news sites, portals, and premium content.
How to fix it
Poor programmatic performance? (1) Check brand safety — are ads appearing next to inappropriate content? Add a blocklist, (2) Check viewability rate — impressions no one saw, (3) Check audience segments — are they relevant? (4) Set a frequency cap — more than 5 impressions/week per person means ad fatigue.
Example
Home goods store: Google Display Network (programmatic) with audience 'In-Market for Furniture & Home Décor.' CPM $3.30, CTR 0.4%, CPC $8. Programmatic retargeting (site visitors): CPM $5, CTR 1.8%, CPC $2.80. Retargeting was 3x more efficient.
Priority
Programmatic retargeting is high priority (performance like standard retargeting with broader reach). Programmatic prospecting is medium priority (after paid search and Meta are working). DV360 — only from a $5,500+/month budget.
Related terms
Keep learning. Metrics that touch the same area:
- eCommerce / Electronic CommerceMarketingAll business activity conducted online — showcasing products, ordering, payment, shipping, and post-sale service. The backbone of every online store.
- CPC – Cost Per ClickMarketingThe price an advertiser pays each time a visitor clicks the ad. Influenced by competition, Quality Score, and landing page relevance.
- CPM – Cost Per MilleMarketingThe cost of advertising per 1,000 ad impressions. A key metric in awareness-focused and brand-building campaigns.
- CPA – Cost Per AcquisitionMarketingThe amount it costs to get a customer to complete a desired action. A core profitability metric — if CPA exceeds gross profit, the campaign loses money.
- CAC – Customer Acquisition CostMarketingTotal marketing and sales spend divided by the number of new customers. Always compare to LTV. A healthy ratio: LTV at least 3x higher than CAC.
- ROAS – Return on Ad SpendMarketingRevenue generated divided by ad spend. A ROAS of 4 means $4 in revenue for every $1 spent on ads.
Jimmy tracks your Programmatic Advertising, automatically
WhatsApp alerts when something important changes. No dashboards, no hassle.