Programmatic Advertising

How does programmatic advertising work?

1. The advertiser sets up a campaign in a buying platform, with a budget, a target audience, and a maximum bid.
2. A person opens a website or an app that has ad space to fill.
3. The publisher's platform offers that impression to an ad exchange.
4. Buying platforms bid on it for their advertisers.
5. The winning ad is shown, all before the page finishes loading.

The main parts

• Demand-side platform (DSP): the software advertisers and agencies use to buy.
• Supply-side platform (SSP): the software publishers use to sell.
• Ad exchange: the marketplace where the two meet and auctions run.

Types of programmatic buying

• Open auction: any buyer can bid, in real time.
• Private marketplace: an invitation-only auction run by a publisher for chosen buyers.
• Programmatic guaranteed: a fixed price and volume agreed in advance, delivered through the same technology.

Programmatic vs. direct buying

In a direct buy, the advertiser negotiates with a publisher and signs an insertion order. In programmatic buying, software makes the purchase one impression at a time. Programmatic is faster and easier to adjust, while direct deals give more certainty over where ads appear.

How is programmatic advertising paid for?

Buying platforms bill the advertiser or its agency for the media bought plus their own fees. Smaller and self-serve accounts often pay by card. Larger accounts are invoiced monthly on credit terms. Agencies that buy for clients carry that spend until the client pays, which is why billing terms matter in media buying. For one example, see how The Trade Desk bills agencies.

How Opal fits

Opal is a charge card built for agencies, media buyers, and brands that run paid media. Credit limits go up to $10 million and are sized on managed ad spend and cash flow, and unlimited free virtual cards give each client or ad platform its own card and spending limit. See how Opal works for agencies.