Evolution of Programmatic
ameenomars@gmail.com

History of Programmatic
What is Programmatic Buying
Why Programmatic
Why RTB
How Programmatic is different from an Ad Network
How Programmatic works
Programmatic Growth in India
ameenomars@gmail.com

History of Programmatic
At the beginning Ad buying was very
simple, advertiser & publisher use to
negotiate the CPM to deliver the Ad to
the audience for a given period of
time.

Increase in the Publisher &
Advertiser, the above said process
became complex. More the
advertisers & publishers, it
became difficult for both the
parties to attain reach.

• The above said, situation gave an opportunity for the Ad networks
to emerge.
Ad Network Ad Networks gathers inventory from various
publisher and sell it at one point.
Ad Network sells the publisher inventory in packages
to the advertiser.
Hence the Ad Network simplified the buying and
selling process.Publisher Publisher

Advantages and Disadvantages of Ad Network
• Disadvantages
• Advertiser had very less transparency and
precision with the audience and
publisher.
• Publisher were left with large number of
remnant (Unsold) inventory.
•
• Advantages
• Helped the advertiser in buying large
inventory from one place for a lesser
price.
• Publisher were now having a place to sell
their inventory on bulk.
•
Hence, still some room to improvise the process of buying and
selling the inventory, which would give the precision with the
audience. Publisher can sell their inventory smartly, not in
packages.

What now! What do we want ?
• Centralization of Inventory
• Minimize Overhead cost
• Maximum reach at lower
costs
• Smart targeting
• Plenty of data

Introduction to Ad Exchange
Ad Exchange is platform, where various publishers sells their inventory, which enables the
advertisers to access these inventory at one place. In short it’s a digital Marketplace where
the buying and selling of ad slots takes place.
Ad exchanges sells inventory of Display, Video , Mobile inventory.
Basically, Ad exchange is a pool where is the publisher push their inventory,
and advertisers buys those inventory via DSP (Demand side platform).

With Ad exchanges in place now we have:
• Centralized the inventory.
• Minimize the overhead cost by cutting down the intermediate
commissions.
• Maximized the reach.
• Smarter targeting via DSP and SSP.
• Capturing the audience data, which could be used later for re-
marketing.

Though the process is easily said, it needed a
technology a platform to manage multiple exchanges
and hit the right audience at same time. Which
means we needed a robust technology which would
help the advertiser reach their right audience across
various exchanges, buying right inventory which is
aligned to the audience, to whom they want to show
their ad.
On the other hand a technology was needed by the
publisher to maximize their profitability. This need
empowered the programmatic buying
platform, such as DSP and SSP. Which facilitates
the programmatic way of buying inventory.

What makes the Programmatic different from
Ad networks ?
Yeah! We might have this question in mind, Why programmatic, when we have ad networks which does
the same thing. Buying and selling of inventory in one place and many more.
The difference is Ad networks prime motto is to sell inventory. However, Programmatic mainly focuses on
AUDIENCE and provide more relevant and robust data for smarter decisions.
Programmatic media buying went mainstream in 2011, since then we have seen a drastic increase in the
number of advertiser adopting programmatic buying.
According to the emarketer, spends in The US Display marketing was increased to 80% by 2017.

How Programmatic work ?
• Now, we might have the above questions in mind.
• Is it RTB the only way of programmatic buying ? Is it
just the bidding for inventory ? is it the same as search
? Is it similar to Adwords ?
• Programmatic has changed the entire eco system of
digital advertising, However, there’s still confusion
around it. What actually is programmatic.

There are many new
data points and
targeting techniques
available to understand
and target audiences.
This makes it possible
for brands to be much
more relevant, reduce
ad wastage and carry
out one-to-one
marketing, at scale.
Location
Devices
Demographic
Behavioral
Website
Viewability
Site
retargeting
Frequency

RTB Work Flow
Highest bidder wins the auction
and the ad slot.
This process takes place within
the fractions of second, yes!
Less then time taken to blink the
eyes.
RTB is not the only way of
programmatic buying, it’s a
part of programmatic
buying. Abbreviation of RTB is
real time bidding, which
means we are purchasing the
Ad slots in a real time auction.

Private & Preferred Deal
• Private & Preferred deals, in
this type of buying the publisher
has the privilege to restrict their
inventory for a particular group
of advertiser, which is known as
Private auction/deal.
If inventory is made available to
a particularly one advertiser, it’s
a preferred auction/deal.

Programmatic Guaranteed
• We also have Programmatic Guaranteed buy, which is similar to
the traditional direct buy/sale of inventory, however, it’s been
automated, all thanks to the technology. Indirect buys the RFP, IO
and trafficking is automated.
• Once we have the deal pushed to DSP from SSP, we just have to
select the advertiser and the creatives and we are done. Usually,
the participants in the direct buy is just one publisher and
advertiser.

Why Programmatic ?
Before Programmatic, digital Ads buying and selling had human
intervention, such as Buyers and sales persons. Who can be
unreliable and indeed increased the overhead cost.
Programmatic advertising technology, eliminated the human
interference where ever possible and made the inventory buying
and selling process more efficient, which also minimized the cost.

Programmatic Growth in India
Digital is growing rapidly in India, at a rate of 30% every year, of which major
part of spend is done via Programmatic.
It is projected that about 800Cr would be spend via programmatic in 2017.
At a growth of 30% India has made it to the top list of programmatic buying
countries, and major part of programmatic buying is traded via open auction
globally.