Demystifying Programmatic – A Guide for Indian Marketers

Programmatic advertising is no longer a buzzword; it’s the driving force behind digital media buying in India. For both buyers and sellers of ad inventory, understanding this automated landscape is crucial for success. Let’s unravel the complexities and explore how programmatic is
revolutionizing media planning and inventory monetization to go with delivering excellence in digital media buying.

Do you ever wonder why Programmatic?

Programmatic advertising revolutionizes media buying by automating the process and replacing manual negotiations with real-time auctions. Demand-Side Platforms (DSPs) empower media buyers with precise targeting capabilities, reaching specific demographics, interests, and behaviours for maximum campaign effectiveness. Real-time bidding (RTB) optimizes ad spending by securing relevant impressions at competitive prices, while also enabling easy scaling of large-scale campaigns across multiple platforms and formats. Furthermore, programmatic provides in-depth data and reporting, facilitating informed decision-making and continuous improvement of future strategies.

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Why Programmatic Matters in India & How to use it Effectively

Fuelled by the scale of smartphone use, expanding internet access, and surging digital ad spend, programmatic advertising is experiencing rapid growth in India. This creates numerous opportunities for media buyers, including access to premium inventory via private marketplaces, extending campaigns across diverse channels (display, video, mobile, CTV, DOOH), and ensuring brand safety through robust fraud prevention and viewability tools.

I’ve encountered numerous situations where a lack of understanding about programmatic advertising has led to unsuccessful campaigns and a hesitancy to re-engage with the platform. To avoid this pitfall, consider the following checklist as a starting point. If the majority of your answers are “yes”, programmatic is likely a good fit for your media buying strategy. Consult with your programmatic strategist for further guidance on a case-by-case basis.

  • Audience & Targeting:
    • Do you need highly specific audience segments (beyond demographics)?
    • Are niche audiences or purchase intent crucial?
    • Is data-driven optimization for ROI a priority?
  • Scale, Channels, & Data:
    • Is your campaign large-scale, needing reach across multiple channels?
    • Do you need unified management across display, video, etc.?
    • Are in-depth analytics, custom reporting, and granular insights essential?
  • Advanced Requirements:
    • Are brand safety, fraud prevention, and viewability top priorities?
    • Does your team have the expertise for complex programmatic setups?

Programmatic advertising shines when precision targeting, large-scale reach, data-driven optimization, and multi-channel campaigns are paramount. However, if your campaign is simpler in scope, budget-constrained, or focused on a single channel, alternative digital mediums might offer a more suitable approach. Keep in mind that Programmatic’s effectiveness often improves over time as the platform learns and refines its targeting based on accumulated data.

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Navigating YouTube’s Programmatic Landscape

Programmatic buying is transforming YouTube advertising in India, offering media planners enhanced tools and broader inventory reach. Platforms like DV360 provide greater flexibility, precise targeting, and cross-channel integration compared to GDN, but may require expertise to navigate increased competition for premium inventory. Strategic use of private marketplaces and audience targeting can ensure brand suitability and maximize ROI. Programmatic YouTube buying offers precise audience targeting, real-time optimization, and seamless integration with other digital channels, maximizing campaign effectiveness. While GDN suits simpler campaigns or smaller budgets, programmatic platforms like DV360 excel for larger, complex campaigns demanding granular targeting. Your choice depends on your specific goals, budget, and targeting needs.

Ultimately, a well-rounded approach requires understanding its diverse targeting options, from demographics and interests to contextual relevance and custom intent. Clear objectives, frequency capping, and data-driven insights are key to optimizing reach and frequency. While performance campaigns offer high engagement potential, compelling storytelling and careful optimization are crucial to combat ad skipping and ensure maximum viewability.

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Unlocking CTV’s Potential & the Power of pDOOH

Programmatic Connected TV (CTV) advertising is revolutionizing the Indian market, offering unparalleled reach and precise targeting. Advertisers can access premium CTV inventory across diverse streaming services, tailoring messages to specific audiences through advanced targeting and real-time bidding. This unified platform enhances transparency and brand safety, streamlining operations. While fragmentation across CTV platforms and measurement complexities pose challenges, partnering with experienced platforms offering robust analytics and cross-device measurement is crucial. Understanding Indian CTV viewership and crafting localized creative messaging is key for brands seeking to connect with their target audience in this evolving market.

Programmatic Digital Out-of-Home (pDOOH) brings the precision of digital advertising to the physical world, empowering advertisers to dynamically target audiences based on location, time, and even real-time events. This elevates campaign relevance and engagement. However, challenges like fragmented inventory, non-standardized measurement metrics, and integration with other digital channels persist. Partnering with pDOOH specialists who possess expertise, media owner relationships, and advanced analytics tools can overcome these hurdles. By blending creative storytelling with programmatic targeting and measurement, brands can unlock pDOOH’s full potential, delivering impactful campaigns that drive real-world results in India.

Navigating Challenges, Maximizing the Value Proposition

Programmatic advertising in India offers immense potential but presents unique challenges for media planners. Fragmentation and inconsistencies in data quality necessitate partnering with reliable providers and exploring second-party data collaborations to ensure accurate targeting. Brand safety and ad fraud concerns demand vigilant monitoring, adoption of third-party verification tools, and partnerships with trusted platforms. Measuring success across multiple channels requires advanced analytics and attribution models to assess campaign impact accurately. To bridge the skills gap, media planners should invest in training, upskilling, and leverage experienced agency partners. Finally, transparent pricing models and open communication with vendors help manage costs and ensure optimal ROI. Understanding the local landscape, adapting to regulatory changes, and building strong relationships with publishers are also vital for navigating the complexities of programmatic advertising in India.

The Future of Programmatic in India

We have seen a rapid acceleration of innovation in programmatic media buying, particularly in the last year. Artificial intelligence (AI) and machine learning (ML) are no longer buzzwords, but integral tools that analyze vast datasets in real time, optimizing bids, targeting, and even creative elements. This empowers advertisers to deliver highly personalized campaigns at scale, leading to improved engagement and ROI. Predictive modelling, now a core element of programmatic strategies, anticipates user behaviour, crucial in the dynamic Indian market.

Meanwhile, the advertising industry is proactively tackling the demise of third-party cookies, with brands focusing on first-party data and AI-powered contextual targeting. GroupM leads the way, participating in innovative solutions to ensure clients’ campaigns remain effective, while leveraging Programmatic’s strengths in India to reach the vast mobile audience, navigate diverse demographics, and uphold brand safety. Our commitment to transparency extends to not only media spend visibility but also prioritizing decarbonization of the digital supply chain. Our Supply Path Optimization and premium marketplace, coupled with robust industry partnerships, showcase our dedication to quality and innovation. As programmatic adapts to marketers’ needs and encompasses new channels like CTV and DOOH, India is poised to ride this wave into the data-driven future of advertising.

Author Profile

Shashidhar Sharma

Head of Programmatic (Practice Leader) – GroupM Nexus India

Shashidhar Sharma, Head of Programmatic - India at GroupM Nexus is an analytical and resourceful professional with track record of success creating bottom-line impact through targeted digital marketing initiatives aligned with emergent business objectives and strategies. He has a demonstrated expertise in establishing and leading end-to-end programmatic, social and ad operations from scratch with the ability to improve process and procedures as well as formulate best practices to enhance delivery capabilities and efficiencies.