How does programmatic display advertising work?

Summary of How does programmatic display advertising work :  

1. Definition of programmatic display
2. How does it work in practice?
3. How can programmatic display be effective? 
4. How to buy programmatic display?

Programmatic display advertising is an automated system for purchasing online advertising space. It allows advertisers to distribute their ads based on precise criteria:

• Geolocation: country, region, city
• Socio-demographic data: age, gender, socio-professional category
• Interests: browsing habits, web behavior
• Keywords present in the consulted content

To launch a campaign, you simply need toset up targeting, budget, and visuals on a platform called a DSP (Demand Side Platform). This platform connects the advertiser to numerous sites and applications, and distributes advertisements in real-time across various media.

A programmatic display campaign is easy to set up because the purchase of ad space is entirely automatic. Furthermore, with programmatic display, targeting is not only done through the collection of personal and browsing data; it is also possible to do it via keywords.

According to the SRI and UDECAM study (34th edition of the E-pub Observatory), display represents 18% of the French digital advertising market in 2025 (€1,076 million), and 65% of display impressions are delivered via programmatic.

>>> To better understand what display advertising is, go to this article

Programmatic display allows for the delivery of the right ad at the right time, thanks to different types of targeting:

• Targeting via user data (cookies): In this case, it is possible to use ad networks that collect data and possess a large inventory of prospects. This provides access to the specific audience segments you wish to target. 

>>> To learn more about how advertising networks work, go to this article

• Contextual targeting: delivery of ads based on the content of the page being viewed. This means targeting is performed based on the users' search history, collected by a network. Thus, the ad will be shown according to previous searches related to the advertiser's sector.
• Semantic targeting: semantic targeting operates through keywords present on websites. It is therefore possible to distribute the ad across all sites (offered by the chosen network) featuring one or more selected keywords. You can also add distribution frames, i.e., target sites by theme, such as finance sites.
• Network targeting: access to segments provided by platforms like Google Display or Teads.  

>>> If you want information on a B2B targeting campaign, it's here

Example of how it works

1. The advertiser sets up their DSP: targeting, budget, visuals.
2. The DSP automatically buys ad space on partner sites and apps in real-time (RTB - Real Time Bidding).
3. The ad appears on the chosen media, tailored to the targeted user.

Here is a diagram that summarizes how programmatic display works: 

Programmatic display is particularly effective at delivering the right message to the right person at the right time. Its targeting capability allows it to be highly successful in achieving its goals.

Programmatic display is effective due to:

• Flexibility: real-time adjustment of campaigns based on performance.
• Precise targeting: distribution only to relevant users.
• Cost optimization: ability to modify budget and bids based on the quality of the targeted audience.

Its main advantage is its flexibility. Indeed, this system allows for an "agile" position: it adapts according to campaign results. Unlike traditional media, you can adapt your advertising strategy in real-time to maximize performance on set objectives.

In this way, programmatic display also allows for total control over spendingsince the campaign can be modified and adjusted at any time.

>>> To learn more about the different display formats according to your objectives, click here

The targeting of the audience is an essential criterion for successful broadcasting, hence its effectiveness. The programmatic display has become more and more popular over the last few years, since in 2021, it will represent 64% of the display revenues (BDM). That is an increase of 38%.  

Programmatic buying is generally done through RTB (Real Time Bidding), either in real time or on a CPM basis. These processes allow you to adjust and control your budget according to the relevance of the targeted profile. 

To buy a display campaign with programmatic, you have to go through a dedicated platform called DSP (Demand Side Platform), among which we can mention Ad-exchange or Teads. 

The prices of a programmatic campaign can vary according to the size of the targeting and the objectives. Nevertheless, we are not going to leave you without information; the average CPM in France on programmatic display campaigns has been estimated at 0,96€ (source: IAB France / Adomik). This is a general average that varies greatly depending on the sector, the targeting or the formats used.