Programmatic Advertising for eCommerce: What is it and How it Helps?

  • author-img Kevin
  • 2 years
Programmatic Advertising for Ecommerce: What is it and How it Helps?

The eCommerce industry is growing by leaps and bounds. Thus, you will require something more than a robust website and killer marketing strategies to scale your business.

To be precise, that is programmatic advertising. It is a data-driven method of buying highly-targeted leads efficiently and smartly. It basically automates the purchasing and selling of the ad inventory and lets brands purchase the inventory in real-time. 

In other words, it is the use of software for buying digital ads. Let’s learn how it can help eCommerce businesses in detail.

What Exactly is Programmatic Advertising?

Programmatic Advertising is a method of purchasing ads through a real-time auction. It automates the process of buying ad space through the following technologies:

DSPs or Demand-Side Platforms: These platforms let you buy ad space via an ad exchange program, for example, Google Ad Manager, that features ad inventory from publishers.

SSPs or Supply-Side Platforms: These are the platforms that let publishers manage ad space for marketers, advertisers, and others looking to buy ad space.

DMPs or Data Management Platforms: These are the platforms that let businesses collect and use customer data for marketing and other purposes.

The entire process of programmatic advertising occurs in the seven steps defined below:

Arrive: Just when a user lands on a website involved with this type of advertising, it starts the automated advertising process. 

Send: In response, the publisher of the website sends the dimensions of its Ad space to a supply-side platform. 

Read: The SSP checks the user’s data in the form of cookies and learns everything about the user, like demographics, interests, and other parameters.

Evaluate: By reviewing all this information, the DSP assigns users a score that predicts its worth.

Bid: At this step, the DSP initiates the bid to the SSP. All this happens in real-time.

Choose: SSP checks out the bids and selects the winner (the highest bidder). 

Deliver: The SSP delivers the winner’s ad to the user. This entire process is very fast, and everything happens without the user even noticing it all.

Now, let’s see how it can help your eCommerce business.

How Programmatic Advertising Helps eCommerce Businesses?

Programmatic advertising can help eCommerce businesses grow by all leaps and bounds if done in the right manner. Let’s find out how:

1) Maximize your productivity

It helps you improve your productivity. In addition, when you decide to automate some of your tasks, you can focus on other high-priority chores that need your attention. Programmatic advertising takes care of the process behind bidding and buying ad space for your products without needing your interference. 

However, it is crucial that you keep checking your programmatic advertising campaign. It will help you monitor and analyze real-time feedback of people getting your ads. For example, Google modifies ads according to the user feedback while the campaign is going on.

2) Provides Limitless Inventory

While advertising manually, advertisers need to spend a lot of time going directly to publishers in addition to working around a limited inventory that is available for them for a month.

When using traditional ad purchasing methods, inventory is limited because every publisher can serve ads on their site only, which means you have fewer options per month. On the other hand, programmatic advertising provides unlimited inventory as advertisers have access to almost all premium websites. As a brand owner, you can buy inventory in real-time on the internet and target audiences with highly personalized ads within seconds.

3) Expand your audience insights

Data is a goldmine for businesses working in the eCommerce domain. Programmatic advertising comes with a lot of insights about your audience. As mentioned above, it is based on SSP gathering visitors’ data through cookies. You can leverage this data to modify your marketing campaigns and generate better results.

For example, in the process, you will learn more about the preferences of your target audience. That will allow you to create ads that target your prospective customers efficiently and encourage them to make a purchase. It is more like serving your customers with what they desire and increasing sales in return.

4) Achieve your KPI goals

To scale a business fast, it is crucial that you achieve your set numbers and make progress fast. Programmatic advertising gives you the ability to gather valuable user data that you can use to achieve your eCommerce KPIs (Key performance indicator) goals. 

As a result, you will get the return on investment faster, and the entire process will be worth putting your efforts into. This type of advertising is a sure-shot way to reach your KPI goals confidently.

5) Streamline your ad buying

It is not easy to manage the entire marketing and advertising operations of an eCommerce brand in-house. However, with programmatic advertising, you can manage the process of buying ad space seamlessly. This lets you oversee your overall brand marketing and advertising strategy effectively by saving time.

If you perform programmatic advertising strategically, you can optimize campaigns and get better results in less time. 


With the data-driven approach of programmatic advertising, brands can secure an edge over the competitors in the most efficient way. When compared to the manual ad buying process, it saves time, helps you spend on ads carefully, optimize campaign frequency, and gives you access to unlimited inventory. In short, this approach makes sure that you spend your advertising budget on targeting customers that are highly likely to convert. 

Do you want to know more about how Programmatic could be an aid for your business? Send us a message, and one of our eCommerce Digital Marketing Experts will connect with you to share with you how it works in order to scale your business fast.

Programmatic Advertising is a method of purchasing ads through a real-time auction. Here is how it can help you scale your business.


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