# What is Programmatic Advertising?

What is Programmatic Advertising? Automated purchase of digital ad space via algorithms and real-time bidding (RTB).

## How it works 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.

## Related metrics

- RTB – Real-Time Bidding — the purchasing mechanism
- CPM — the common cost metric in programmatic
- Audience Targeting — the basis for programmatic
- DMP – Data Management Platform — feeds audience data

## 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.

## Real-world 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.

## Where to start

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.

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Category: Marketing · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/programmatic-advertising