In today’s advertising ecosystem, where personalization and efficiency are paramount, programmatic advertising has become a strategic pillar for brands and retailers. But what exactly is programmatic ad buying and selling, and how is it revolutionizing Retail Media?
What is programmatic advertising?
Programmatic advertising is the automated process of buying and selling ad spaces in real-time through advanced technology platforms. It leverages audience data, artificial intelligence, and machine learning to optimize ad delivery, ensuring that messages reach the right audience, at the right time, in the right place.
Put simply, it works like a real-time digital auction, where advertisers bid for ad impressions based on specific targeting criteria, such as:
- Demographics (age, gender, location)
- Shopping behavior (purchase patterns, app usage)
- Contextual factors (weather, time of day, local events)
- Performance data (in-store traffic, conversions)
This automation enhances targeting precision and optimizes advertising budgets more effectively.
How does programmatic ad buying work?
The programmatic ecosystem consists of several key platforms:
- SSP (Supply-Side Platform): used by publishers (like in-Store Media) to sell their ad inventory programmatically.
- DSP (Demand-Side Platform): used by advertisers to purchase ad spaces based on audience data and specific targeting criteria.
- DMP (Data Management Platform): a data management system that collects and analyzes shopper insights to optimize media buying.
Types of programmatic ad buying
There are several models of programmatic ad buying, each with its own characteristics:
- Real-Time Bidding (RTB): a bidding process where each ad impression is auctioned off in milliseconds.
- Guaranteed Programmatic Deals: ad inventory is negotiated in advance and executed programmatically.
- Private Marketplace (PMP): exclusive auctions where only selected advertisers can access premium inventory.
Retail Media & Programmatic DOOH: the in-store revolution
Retail Media has evolved beyond traditional digital channels, and Programmatic Digital Out-of-Home (pDOOH) has emerged as a powerful tool to engage shoppers along their path to purchase.
At in-Store Media, we leverage programmatic DOOH advertising to deliver highly relevant messages to shoppers directly at the point of sale.
The benefits of programmatic advertising in Retail Media
- Greater precision: targets shoppers at the moment of purchase decision.
- Budget optimization: advertisers only pay for the most relevant impressions.
- Dynamic messaging: ads are personalized in real time based on data insights.
- Measurement & attribution: tracks in-store traffic and conversion impact.
in-Store Media: data-driven advertising
At in-Store Media, we embrace a data-driven approach. By integrating with programmatic platforms and utilizing qualified audiences, we achieve:
- Targeting shoppers when they are most likely to buy.
- Optimizing ad investment based on traffic and conversion data.
- Measuring campaign success in terms of actual sales.
While programmatic advertising enhances efficiency and precision, it should be seen as one component of a broader Retail Media strategy. Its growing impact remains complementary to other key advertising solutions at the point of sale.
At in-Store Media, we combine multiple data-driven strategies to maximize the effectiveness of every campaign and create real value for brands and retailers.
