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How To Get Started With Programmatic Advertising

11 minutes read

Programmatic advertising has revolutionized the way businesses buy and place ads, making it more efficient, targeted, and data-driven. By automating the ad-buying process and utilizing advanced algorithms, programmatic advertising ensures your message reaches the right audience at the right time, maximizing return on investment.
For businesses new to programmatic, getting started may seem complex, with its technical jargon, numerous platforms, and endless data points. However, understanding the basics and following a structured approach can simplify the process and help you unlock its potential.
This guide will walk you through the key steps to launch your first programmatic advertising campaign, from choosing the right platform and defining your goals to optimizing performance and measuring success. Whether you’re a small business or a large enterprise, this article will equip you with the knowledge to leverage programmatic advertising effectively.
Key Takeaways
- Programmatic advertising automates ad-buying in real-time, using algorithms and data to target audiences effectively across digital channels.
- Key programmatic types include Real-Time Bidding (RTB) for open auctions, Private Marketplaces (PMPs) for premium inventory, and Programmatic Direct.
- Launching a campaign requires clear goals, the right demand-side platform (DSP), audience targeting, compelling ad creatives, and ongoing optimization.
- Best practices include leveraging first-party data, implementing frequency capping, and adopting omnichannel strategies for maximum engagement.
- Platforms like Strategus simplify programmatic advertising with a hands-off, managed approach, ensuring efficiency and measurable results. Partner with Strategus today!
What is Programmatic Advertising?
Programmatic advertising is the automated buying and selling of digital ad space in real-time using data-driven software. This technology allows advertisers to purchase ad inventory across a wide range of digital platforms, including websites, mobile apps, and streaming services, all through a single, centralized system.
Rather than manually negotiating with individual publishers or ad networks through non-programmatic advertising, programmatic advertising uses algorithms and real-time bidding to automatically match advertisers with available ad space based on a variety of targeting criteria, such as demographics, interests, and behavioral data.
Types of Programmatic Advertising
When diving into programmatic advertising, it's important to understand the different types of programmatic ad buying available. Each type offers unique advantages and considerations for advertisers looking to maximize their ad spend and reach their target audience effectively.
Real-Time Bidding (RTB)
Real-Time Bidding (RTB) is an open auction where ad space is bought and sold on a per-impression basis. In this type of programmatic advertising, advertisers compete in real-time for available ad inventory across multiple publishers and platforms.
When a user visits a website or app, an ad request is sent to an ad exchange, which then initiates an auction. Advertisers use demand-side platforms (DSPs) to automatically bid on the ad space based on predefined targeting criteria and budget constraints. The highest bidder wins the auction, and their ad is served to the user instantly.
RTB offers advertisers the ability to reach a wide audience across various digital channels while optimizing their ad spend based on real-time data and performance metrics.
Private Marketplace (PMP)
Private Marketplace (PMP) deals are invite-only auctions for premium ad inventory. In contrast to the open nature of RTB, PMPs allow publishers to maintain greater control over the advertisers who can access their ad space and at what price.
Advertisers who are invited to participate in a PMP can benefit from access to high-quality, brand-safe inventory that may not be available through open auctions. This can be particularly valuable for brands looking to protect their reputation and ensure their ads appear in reputable, relevant contexts.
PMPs often involve direct relationships between publishers and advertisers, which can lead to more transparent and efficient ad buys compared to the broader programmatic ecosystem.
Programmatic Direct
Programmatic Direct refers to automated ad buys between publishers and advertisers that occur outside of the auction-based model. In this type of programmatic advertising, advertisers and publishers negotiate the terms of the ad buy directly, including the price, placement, and targeting criteria.
Once the terms are agreed upon, the ad buy is executed programmatically through a platform that automates the delivery and tracking of the ads. This approach combines the efficiency and data-driven benefits of programmatic advertising with the direct relationships and guaranteed ad placements of traditional media buying.
Programmatic Direct can be an attractive option for advertisers who want to secure premium ad inventory and maintain greater control over where their ads appear while still leveraging the benefits of automation and real-time optimization.
How to Get Started with Programmatic Advertising
Now that you understand the key components of the programmatic advertising ecosystem, it's time to dive into the steps you can take to launch your first programmatic campaign.
Define Your Goals
Before you begin setting up your campaign, take some time to clearly define your advertising goals. Are you looking to increase brand awareness, generate leads, or drive sales? Having a clear understanding of what you want to achieve will guide your decisions throughout the campaign setup process.
Consider setting specific, measurable, achievable, relevant, and time-bound (SMART) goals to ensure your programmatic advertising efforts are focused and effective. For example, "Increase website traffic by 25% over the next quarter" or "Generate 100 new leads per month through programmatic advertising."
Choose the Right Platform
With your goals in mind, research and select a demand-side platform (DSP) that aligns with your needs and budget. Consider factors such as the types of ad formats supported, targeting capabilities, and reporting features when evaluating potential platforms.
Some DSPs specialize in specific channels, such as mobile or connected TV (CTV), while others offer a more comprehensive suite of services. Programmatic TV advertising has become increasingly popular as viewers shift towards streaming content, so if your target audience is likely to engage with CTV, look for a DSP with expertise in this area.
Take advantage of free trials or demos offered by DSPs to get a feel for the platform's user interface and capabilities before committing to a particular provider.
Set Up Your Campaign
Once you've selected a DSP, it's time to set up your programmatic advertising campaign. Start by defining your target audience using the platform's targeting options. You can create audience segments based on demographics, interests, behaviors, and other criteria to ensure your ads reach the most relevant users.
Next, determine your campaign budget and ad placements. Consider factors such as your overall marketing budget, the cost-per-thousand-impressions (CPM) for your target audience, and the ad formats you want to use. Many DSPs offer tools to help you estimate the reach and frequency of your ads based on your budget and targeting selections.
Finally, create compelling ad creatives that align with your campaign goals and target audience. Use eye-catching visuals, clear messaging, and strong calls-to-action (CTAs) to encourage users to engage with your ads. Be sure to follow best practices for each ad format, such as using high-quality images and videos, and keeping text concise and easy to read.
Monitor and Optimize
Once your programmatic advertising campaign is up and running, it's important to monitor its performance closely using the real-time data and analytics provided by your DSP. Keep an eye on key metrics such as impressions, clicks, click-through rate (CTR), and conversions to gauge the effectiveness of your ads.
Use these insights to make data-driven adjustments to your campaign settings, targeting criteria, and ad creatives to improve results and maximize your return on investment (ROI). For example, if you notice that certain ad placements or audience segments are performing particularly well, consider allocating more of your budget to those areas.
Regularly review and refine your programmatic advertising strategy based on campaign performance data to ensure you're continuously improving and achieving your goals.
Work with a Hands-Off Platform like Strategus
Getting started with programmatic advertising can be overwhelming, especially when using self-serve platforms. These tools often require in-depth technical knowledge, constant monitoring, and a dedicated team to manage campaigns effectively. Without the right expertise, businesses risk wasted ad spend, inefficient targeting, and suboptimal results.
A hands-off platform like Strategus offers a better solution. With Strategus, you gain access to a team of programmatic advertising experts who manage every aspect of your campaigns. From advanced audience targeting and creative optimization to real-time adjustments and performance tracking, Strategus handles the heavy lifting, allowing you to focus on your core business goals.
Strategus also ensures access to premium Connected TV (CTV) inventory, ensuring your ads appear in high-quality, professionally produced content. Their transparent real-time reporting dashboard provides actionable insights without requiring users to navigate complex analytics tools.
By partnering with Strategus, businesses can avoid the challenges of self-serve platforms while enjoying personalized service, data-driven optimization, and measurable results.
Ready to simplify your programmatic advertising journey? Partner with Strategus for a fully managed, hands-off approach that ensures your campaigns perform at their best.
Benefits of Programmatic Advertising
Programmatic advertising offers a range of benefits that make it an attractive option for businesses looking to optimize their digital advertising efforts. Let's explore some of the key advantages of programmatic advertising and how they can help you achieve your marketing goals.
Increased Efficiency
One of the most significant benefits of programmatic advertising is its ability to automate the ad buying process. By leveraging advanced algorithms and real-time bidding, programmatic platforms can quickly and efficiently match advertisers with available ad inventory across a wide range of digital channels.
This automation saves you time and resources that would otherwise be spent on manual negotiations and ad placements. With programmatic advertising, you can focus on developing effective ad creative and optimizing your campaigns based on data-driven insights.
Improved Targeting
Programmatic advertising allows you to reach specific audiences with highly relevant ads by utilizing vast amounts of data. This data can include demographics, interests, behaviors, and even real-time location information.
By leveraging this data, programmatic platforms can help you deliver your ads to the right people at the right time, increasing the likelihood of engagement and conversion. Advanced targeting capabilities ensure that your ad spend is allocated efficiently, reaching users who are most likely to be interested in your products or services.
Greater Transparency
Programmatic advertising provides a high level of transparency into your ad placements, performance, and costs. With detailed reporting and analytics, you can gain valuable insights into where your ads are appearing, who is seeing them, and how they are performing.
This transparency allows you to make data-driven decisions about your ad strategy, optimizing your campaigns for better results and ROI. You can easily identify which channels, ad formats, and targeting criteria are driving the best outcomes and adjust your approach accordingly.
Enhanced Personalization
Programmatic advertising enables you to deliver highly personalized ad experiences to your target audience. By analyzing user behavior, preferences, and past interactions with your brand, programmatic platforms can help you create tailored ad content that resonates with individual users.
How Does Programmatic Advertising Work?
To get started with programmatic advertising, you'll first need to choose a demand-side platform (DSP) that aligns with your goals and budget. Within the DSP, you'll set your campaign parameters, including your target audience, ad formats, and overall spend.
On the other side of the equation, publishers make their ad inventory available through supply-side platforms (SSPs). When a user visits a website or app, the SSP sends a bid request to the ad exchange, which then communicates with connected DSPs.
The DSPs analyze the impression opportunity based on the advertisers' predefined criteria and submit bids in real-time. This entire process, known as real-time bidding (RTB), happens within milliseconds.
The highest bidder wins the impression, and their ad is instantly displayed to the user. After the ad is served, the advertiser receives data on the ad's performance, such as clicks, views, and conversions.
This real-time feedback loop allows you to continuously optimize your campaigns based on what's working and what's not. You can adjust your targeting, ad creative, and bids to improve performance and maximize your return on ad spend (ROAS).
As you dive deeper into programmatic advertising, you'll encounter terms like first-party data, third-party data, and contextual targeting. These concepts refer to the various data sources and strategies used to refine your targeting and reach users most likely to engage with your ads.
First-party data is information you collect directly from your customers, such as website behavior and purchase history. Third-party data is acquired from external sources and can help you expand your reach beyond your existing customer base. Contextual targeting involves placing ads on websites or apps that align with your target audience's interests based on the content they are consuming.
Programmatic Advertising Best Practices
As you embark on your programmatic advertising journey, keep these best practices in mind to maximize your campaign performance and ROI.
Prioritize Ad Quality
Your programmatic ads should be visually appealing, relevant to your target audience, and non-intrusive. High-quality ad creatives capture users' attention and encourage engagement, leading to better campaign results. Ensure your ads are well-designed, with clear messaging and compelling calls-to-action.
Avoid using overly flashy or disruptive ad formats that may annoy users and negatively impact their browsing experience. Instead, focus on creating ads that seamlessly blend with the surrounding content while still standing out enough to drive clicks and conversions.
Leverage First-Party Data
First-party data, or information you collect directly from your customers, is a valuable asset in programmatic advertising. Use your website analytics, CRM data, and other customer insights to create targeted audience segments for your campaigns.
By leveraging first-party data, you can deliver highly personalized ad experiences that resonate with your target audience. This approach not only improves ad relevance but also helps you build stronger relationships with your customers by demonstrating a deep understanding of their needs and preferences.
Implement Frequency Capping
Frequency capping is a programmatic advertising technique that limits the number of times a user sees your ad within a given timeframe. Implementing frequency caps helps prevent ad fatigue and maintains a positive user experience.
Overexposing users to the same ad can lead to diminishing returns and even negative sentiment towards your brand. By setting appropriate frequency caps, you ensure that your ads remain fresh and effective without overwhelming your target audience.
Experiment with different frequency cap settings to find the optimal balance for your campaigns. Monitor your campaign performance data to identify any signs of ad fatigue, such as declining click-through rates or increased ad blocking, and adjust your frequency caps accordingly.
Embrace Omnichannel Strategies
To maximize your reach and engagement, run programmatic campaigns across multiple channels and devices. An omnichannel approach allows you to connect with your target audience wherever they are, whether they're browsing the web on their desktop, scrolling through social media on their smartphone, or streaming content on their connected TV.
Programmatic advertising platforms offer the ability to manage campaigns across various channels from a single interface, making it easier to implement and optimize your omnichannel strategy. By leveraging the strengths of each channel and creating a cohesive experience across touchpoints, you can drive better results and build stronger connections with your audience.
When developing your omnichannel programmatic strategy, consider the unique characteristics and best practices for each channel. For example, mobile ads should be optimized for smaller screens and shorter attention spans, while connected TV ads should take advantage of the immersive, full-screen experience to tell compelling brand stories.
As you continue to refine your programmatic advertising approach, stay up-to-date with the latest industry trends and best practices. Continuously test and optimize your campaigns based on performance data, and don't be afraid to experiment with new strategies and tactics to stay ahead of the curve.
Is Programmatic Advertising Right for Your Business?
Programmatic advertising is a powerful tool for businesses aiming to scale their marketing efforts, deliver targeted messages, and achieve measurable results. It offers unmatched precision and efficiency, making it an excellent choice for brands ready to modernize their advertising strategies. However, programmatic advertising can be complex, requiring expertise, advanced tools, and continuous management to ensure success.
For businesses without the resources to navigate this landscape on their own, Strategus provides an ideal solution. With a fully managed, hands-off approach, Strategus handles everything from strategy and audience targeting to real-time optimization and reporting. Their expertise in Connected TV (CTV) advertising ensures your campaigns deliver results while saving you time and effort.
Ready to simplify programmatic advertising? Partner with Strategus today and unlock the full potential of your campaigns with expert guidance and premium service.


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