Explaining digital and programmatic media buying

A successful advertising campaign is more than just a memorable image or slogan. It's a game of anticipation — the user just thinks about your service, and there it is in an ad. All this is the wizardry of media buying.

What is media buying?

Media buying is a crucial part of advertising, combining media planning and purchasing to ensure that campaigns reach the right audience. Companies use programmatic, digital, or direct media buying through platforms such as Medialister. It is essential to understand the media buying process to optimise results, whether through online media buying or the services of a media buying company.

The following parties are involved in this process:

1. Publishers — owners of advertising space.

2. Media buyers or advertisers — those who rent advertising space, draw up media plans, and offer options for optimal advertising placement on various platforms.

Two types of media buying

Media buying can be divided into two broad categories: 

1. Direct buying

Direct media buying involves dialogue between the publisher and the buyer: they agree on the terms and cost of placement directly with each other.

2. Programmatic buying

Programmatic advertising involves buying and selling media using technology. Rather than buying directly from the website owner, traffic is purchased through a special demand-side platform. As many processes as possible in this sale are automated, and media advertising is often purchased in real-time. 

How does media buying work?

In the digital media buying world, programmatic systems usually handle the process automatically.

Programmatic buying ecosystem

A pragmatic buying structure is more complex than a direct one. Hence, let’s examine three components of it:

Component 1: Demand-side platforms (DSPs)

• Tools for advertisers and agencies.

• Enables you to launch campaigns and bid on advertising inventory in real time.

• Examples: The Trade Desk, Google DV360.

Component 2:  Supply-side platforms (SSPs)

• Platforms where publishers display their advertising inventory.

• Examples: Magnite, PubMatic.

Component 3: Ad exchanges

• Virtual exchanges that connect DSPs with SSPs.

• Operate through real-time bidding (RTB) auctions.

• Can be open exchanges or private marketplaces (PMPs).

Ad networks (such as Google AdSense) sometimes still operate in this chain, collecting advertising inventory from various websites and selling it in packages.

Two agreement formats

1. Real-Time Bidding (RTB) – auction: advertisers bid for each impression in real time.

2. Programmatic Direct – advertising is purchased at a fixed price (CPM), without participating in the auction. This is convenient for guaranteed placements.

7 Steps in media buying

The media buying process in the media industry consists of seven key steps:

1. Budget allocation

The first step in media buying is to determine how much of the budget to allocate to guaranteed and non-guaranteed inventory:

• Guaranteed — purchasing a predetermined amount of advertising with a guarantee of impressions.

• Non-guaranteed — flexible placements through auctions, usually cheaper but without guarantees.

2. RFPs and channel selection

The second step in the media buying process is sending requests for proposals (RFPs) to media outlets and partners (if necessary).  At this stage, proposals from various channels are analysed and their cost and reach are evaluated. The task is to select a mix of channels (e.g., TV, digital, social media, native advertising) that will ensure the greatest effectiveness for the campaign. 

3. Insertion orders (IOs)

After selecting channels and partners, insertion orders (IOs) are concluded — official agreements between the advertiser and the media. They specify formats, launch dates, number of impressions, price, and KPIs. The IO effectively formalises the agreements and initiates preparations for placement.

4. Ad material delivery and placement finalization

After signing the IO, the next step is to send the advertising materials to the selected media outlets. Here, the exact parameters of each advertisement are agreed upon: format, size, display time, and placement. The media outlets prepare the advertisement for launch in accordance with the agreements so that it meets the brand's standards and expectations.

5. Campaign launch and measurement

After preparing and delivering the materials, the campaign is launched. Advertisements begin to run on selected channels in accordance with the IO. At the same time, metrics are established to evaluate effectiveness: reach, CTR, conversions, ROI, and other KPIs.

6. Monitoring and optimization

After launching a campaign, it is essential to monitor metrics from media channels and internal analytics systems continuously. Key performance indicators (KPIs) are analyzed: reach, CTR, conversions, cost of acquisition, etc. Based on the data, adjustments are made to targeting, budgets, or creatives. 

7. Post-campaign reconciliation

At the final stage, the results are compared with the media plan:

• Actual expenses are compared with the planned budget.

• The difference between the projected and actual figures is analyzed.

• If there are discrepancies (for example, fewer impressions than agreed), the media offer “makegoods” — additional placements or discounts as compensation.

Traditional vs. digital media buying

The main task of both traditional and digital media buying is to show advertisements to the target audience in the right advertising formats, at the right time, and in the right context.

Media buying examples of use

Here are a few examples of media buying use in different industries:

1. E-commerce (online store)

• Using programmatic display and social ads to drive traffic to the website.

• Retarget those who viewed the product but did not make a purchase.

2. FMCG (fast-moving consumer goods)

• TV advertising + digital video for launching a new product.

• A combined media plan increases awareness and builds trust.

3. SaaS / B2B

• Native advertising in specialized media to build expertise.

• Paid editorial through platforms such as Medialister for precise access to the business audience.

4. Local business

• Geotargeted mobile ads and Google Maps ads to attract visitors.

• Support via Facebook Ads in local communities.

5. Entertainment & streaming

• Using Connected TV (CTV) to promote new shows.

• Precise targeting based on interests, combined with the ability to integrate with social networks.

Reasons why media buying has practical value for brands

The strategic purchase of media undoubtedly impacts the success of an advertising campaign. Period.

Firstly, media buying enables brands to maintain a consistent presence in the right channels and reach the right audience at the right time.

Secondly, planning and automation enable brands to control costs more effectively and optimise customer contact costs (CPC, CPM, and CPA).

Thirdly, digital media buying enables precise targeting based on interests, behaviour, location, and even viewing habits (for example, on CTV).

Fourthly, media buying enables the combination of traditional and digital channels to launch campaigns of any scale, from local to national.

Finally, native advertising and paid editorial content build trust because they are integrated into editorial content. Medialister is an excellent solution for those seeking quality media buying integration. Read on to find out more!

When to use media buying with Medialister

Media buying is always about striking a balance between effectiveness and trust. While programmatic and traditional channels are great for reach and performance metrics, when a business needs to raise awareness, enter a new market, or establish its expertise, adding another component — guaranteed editorial placements — can be useful. Medialister is a platform that gives brands control over where and in what format their content appears. This is particularly important when launching new products, supporting PR campaigns or establishing a reputation in competitive niches.

When you use Medialister with programmatic campaigns, it creates a positive effect where both advertising and native publications work well together. Advertising delivers quick results, while native publications build trust over a long period of time.

Quick view: When Medialister adds value

FAQ

What is media buying?

Media buying is the process of buying ad space or time on TV, radio, websites, social media, or apps to reach a target audience.

What does a media buyer do?

The role of a media buyer is to purchase ad space, manage budgets, and ensure that ads reach the right audience effectively.

What is Facebook media buying?

Facebook media buying refers to paying to advertise on Facebook (and Instagram) to reach specific audiences.

How do you negotiate buying media?

This involves negotiating media buying, researching rates, comparing offers, discussing pricing and added value, and finalising placement and terms.

What is media planning and buying?

Media planning and buying involve designing an advertising strategy (media planning) and then purchasing the right advertising space or time (media buying) to effectively and efficiently reach a target audience.

How does media buying work?

The process of media buying involves identifying the proper channels and audience, negotiating or bidding for ad space (either manually or programmatically), placing the ads, and tracking their performance to optimise results.

How does programmatic media buying work?

Programmatic media buying uses automated platforms to purchase ad space in real time. Advertisers set up campaigns on DSPs (Demand-Side Platforms) and publishers list their inventory on SSPs (Supply-Side Platforms). Ad exchanges then connect the two. Ads are then purchased via real-time auctions or direct deals, enabling precise targeting and optimisation.