Programmatic advertising has become one of the most powerful shifts in digital marketing worldwide, and Nigeria is no exception.

If we’re being honest, a lot of ad money in Nigeria doesn’t work. 

Businesses throw money at ads, but most of it ends up in front of the wrong people, people who will never buy, never click, and never care.

Programmatic advertising flips that script.

I recently spent time researching how programmatic works in Nigeria, and the truth is clear: most businesses still see it as “too complex” or “only for big brands.” But it’s becoming one of the most accessible ways to target real customers.

But to understand why programmatic matters, and why it’s becoming a major force in Nigeria’s marketing landscape, we need to start from the foundation.

What Is Programmatic Advertising?

Programmatic advertising is the automated buying and selling of digital ad inventory across the internet.

Instead of humans manually negotiating placements with publishers (e.g., “Place my banner on your website for ₦200,000 this month”), programmatic uses:

• Algorithms
• Artificial Intelligence
• Real-time user data
• Automated bidding systems

This automation makes decisions faster, more accurate, and more cost-efficient.

What exactly does programmatic buy?

Programmatic doesn’t just buy standard banner ads. It operates across almost every major digital channel, including:

• Websites & blogs
• Mobile apps
• Video platforms like YouTube & CTV
• Audio (podcasts, streaming radio)
• Digital Out-of-Home (billboards, mall screens, airport displays)
• Social platforms (through certain integrations)
• News & entertainment apps
• Gaming platforms
• Smart TVs and OTT environments

If it shows ads and connects to the internet, there is a high chance that programmatic can reach it.

The core purpose of programmatic

At its essence, programmatic is designed to do one thing exceptionally well: Deliver the right ad to the right person, at the right time, for the right price, automatically.

This reduces wastage, increases relevance, and ensures brands aren’t just spending for impressions but for outcomes.

Why Programmatic Exists

Programmatic was created to solve these problems.

Here’s how it transforms advertising:

• Real-time decision-making: Instead of booking placements weeks in advance, programmatic decides in milliseconds whether an impression is worth buying.
• Efficiency at scale: Brands can run thousands of ads across thousands of sites without touching anything manually.
• Audience-based targeting: Instead of choosing websites, you target people based on behaviour, location, interests, demographics, and intent.
• Automated optimisation: AI continually tests and improves your campaigns without waiting for a human to intervene.

Key Benefits of Programmatic Advertising

Programmatic isn’t “just another ad method.” It is a full-performance engine. Here are the major advantages brands, especially in Nigeria, gain from using it:

Precision Targeting:

You don’t pay to reach everyone. You only pay to reach the audience segments that match your ideal buyers.

Examples in Nigeria:

• People who frequently shop online
• Lagos residents with high data usage
• Users who recently viewed real estate websites
• Individuals browsing financial content
• Shoppers interested in tech gadgets

Reduced Wastage:

Traditional ads show to everyone on a platform, whether they care or not.

Programmatic filters out:

• Uninterested users
• Out-of-market audiences
• Users who are unlikely to convert

Real-Time Bidding (RTB):

Instead of bulk buying, programmatic bids for each impression are made individually, based on:

• The user’s value
• The context
• Data signals
• Campaign goals
• Competitor bids

This ensures you never overpay for low-quality impressions.

Transparency (in advanced setups)

You can see:

• Where your ads appeared
• How much each impression cost
• Which audiences performed best
• Which sites were blocked or passed
• Device breakdowns
• Viewability metrics

Cross-Channel Reach:

Programmatic lets you appear everywhere your customer spends time

• On their phone
• On their laptop
• On connected TV
• On podcasts
• On billboards at Ikeja City Mall
• On airport screens
• Inside apps like Boomplay, Pulse, Opera, and more

Scalable Media Buying:

Whether you’re a startup spending ₦200,000 a month or a multinational spending millions, programmatic scales your campaigns:

• To more channels
• To wider audiences
• To deeper segmented targeting
• To multiple locations

The Programmatic Ecosystem & Main Players

Programmatic advertising may seem complex at first glance, but it becomes simple when you understand the ecosystem, who is involved, what each party does, and how everything connects behind the scenes.

Think of programmatic as a highly automated marketplace where buyers and sellers use technology to trade advertising space in real time. To make this marketplace work, several players exist on both the advertiser side, the publisher side, and across the supporting infrastructure.

Let’s break it down clearly.

Advertiser Side

This side contains all the entities involved in buying ad impressions. Their goal is simple: reach the right customers, efficiently and at scale.

Brand (the advertiser)

This is the company or business running the campaign.

Examples in Nigeria:

• Jumia running programmatic ads for Black Friday
• Flutterwave promoting online payments
• A real estate developer targeting Lagos home seekers
• A fashion brand trying to improve sales

The brand supplies:

• Campaign goals
• Budgets
• Creative assets
• Audience insights
• KPIs

They are the main reason the ecosystem exists; they are the buyers.

Agency / Trading Desk

Most brands don’t manage programmatic ads directly because the platforms are advanced and require expertise. Instead, they work with:

• Media agencies
• Programmatic specialists
• In-house trading desks

A trading desk is a specialized team or unit that handles:

• DSP setup
• Bid strategies
• Audience segmentation
• Creative optimization
• Reporting & attribution
• Fraud detection
• Budget allocation

Agencies ensure the brand gets the best performance and the least wastage.

DSP (Demand-Side Platform)

A DSP is the heart of the advertiser’s buying system.

It is a technology platform where advertisers bid on ad impressions in real time.

Examples of global DSPs:

• Google DV360
• The Trade Desk
• Amazon DSP
• MediaMath
• StackAdapt
• Xandr Invest (Microsoft)
• Beeswax
• Adform

African DSP examples are emerging, but most Nigerian brands use global DSPs through agencies.

What a DSP does:

• Receives bid requests from publishers
• Analyzes user data instantly
• Decides whether the user matches your target
• Places a bid
• Wins or loses the auction
• Serves your ad if it wins

It acts like a super-smart real-time decision maker.

DMP / CDP (Audience & Data Management)

These two tools power the data behind programmatic.

DMP (Data Management Platform)

Used to:

• Collect
• Organize
• Segment
• Activate

Large sets of anonymous audience data (e.g., interests, behaviours, demographics).

Useful for:

• Third-party data
• Lookalike audiences
• Behavioural targeting

DMPs use cookies heavily (which are now being phased out).

CDP (Customer Data Platform)

CDPs manage first-party data, actual users and customers of the brand.

It builds identity-level profiles, including:

• Emails
• Phone numbers
• Purchase history
• Website behaviour
• Mobile app actions
• Offline CRM data

CDPs are more reliable in a privacy-first world because they’re built on consent and identity, not cookies.

In short:

• DSP = buys ads
• DMP = manages anonymous audience segments
• CDP = manages real customer data

All three work together to help advertisers reach the right people with precision.

Publisher Side

This side includes everyone involved in selling ad placements. Their goal is simple: monetize their content and audience.

Publisher

The publisher is any platform that owns digital real estate where ads can appear.

Examples in Nigeria:

• Legit.ng
• Nairametrics
• Techpoint
• Pulse
• Opera News
• BellaNaija
• Mobile apps
• Streaming platforms
• Games
• Blog networks

Even DOOH screens at:

• Ikeja City Mall
• Airports
• Jabi Lake Mall
• Bus terminals

…all count as “publishers” in programmatic DOOH.

Publishers supply:

• Ad inventory
• Audience
• Quality content
• User data signals

They want to earn the most money for each impression.

SSP (Supply-Side Platform)

An SSP is the publisher’s version of a DSP.

It helps publishers:

• Manage inventory
• Connect to ad exchanges
• Set price floors
• Maximize revenue
• Filter out bad advertisers
• Handle header bidding

Popular SSPs:

• Google Ad Manager / AdX
• Magnite
• PubMatic
• OpenX
• Index Exchange
• Xandr Monetize

SSPs ensure publishers earn as much as possible for each impression.

Ad Exchange

This is the marketplace where auctions take place.

It connects:

• SSPs (sellers)
• DSPs (buyers)

And enables instant bidding for impressions.

Think of it like the Nigerian Stock Exchange, but instead of stocks, it sells ad space.

Popular ad exchanges include:

• Google Ad Exchange (AdX)
• OpenX
• Rubicon
• Index Exchange
• Magnite

The exchange is where RTB (real-time bidding) happens.

Supporting Technology

The ecosystem cannot function without additional tech layers that provide measurement, security, identity resolution, and attribution.

These tools ensure ads are delivered safely, measured correctly, and protected from fraud.

Ad Server (Advertiser & Publisher)

An ad server:

• Hosts creative files
• Delivers ads
• Tracks impressions, clicks, conversions
• Manages creative rotation
• Chooses which ad version to show

There are two types:

Advertiser Ad Server

Used for:

• Creative management
• Impression validation
• Cross-channel tracking

Example: Google Campaign Manager 360.

Publisher Ad Server

Used for:

• Serving ads on websites
• Prioritizing deals
• Waterfalling and yield management

Example: Google Ad Manager.

Attribution Platforms

These tools help advertisers understand:

• Which channel caused a conversion
• Which touchpoint contributed
• How to allocate budget
• How users interacted across devices

Examples:

• AppsFlyer
• Adjust
• Branch
• Google Analytics 4
• Singular

Attribution separates signal from noise.

Verification Tools (IAS, MOAT, DoubleVerify)

Verification tools ensure your ads are:

• Seen by humans (not bots)
• Viewed (actual viewability)
• Served in safe environments
• Measured accurately

Popular tools:

• IAS (Integral Ad Science)
• MOAT (Oracle Moat Analytics)
• DoubleVerify (DV)

These companies detect fraud, invalid traffic, unsafe placements, fake impressions, and more.

Brand Safety & Suitability Technology

Not every website is safe for your brand.

These tools filter out:

• Adult content
• Hate speech
• Violence
• Political misinformation
• Low-quality sites
• Fake inventory

They ensure your ads only appear where they should.

Standards rely on:

• GARM (Global Alliance for Responsible Media)
• Keyword blocklists
• Category exclusions
• Contextual filters

Identity Providers (Unified ID 2.0, RampID)

As cookies die, programmatic needs reliable identity systems.

Identity solutions provide:

• Cross-device user recognition
• Privacy-compliant identifiers
• Audience matching without cookies

Leading identity providers:

• Unified ID 2.0
• RampID (LiveRamp)
• ID5
• Panorama ID

These systems are becoming the backbone of the post-cookie advertising world.

How Programmatic Advertising Works: The Full Workflow

Programmatic may sound complex, but the process is straightforward. It happens in milliseconds and follows a clear flow.

A user visits a website or app

Someone opens a news site, blog, mobile app, or streaming platform.

The publisher sends a bid request to the SSP

The publisher (the site owner) has ad space available.
Their Supply-Side Platform (SSP) sends a request saying:
“There’s one ad impression available. Who wants it?”

The bid request usually includes:

• Device type
• Location (general, not exact address)
• Browser or app info
• Basic audience signals

The SSP sends the request to multiple DSPs.

The request enters an ad exchange.
Demand-Side Platforms (DSPs), which represent advertisers, receive the opportunity to bid.

DSPs evaluate the impression.

Each DSP checks whether this user matches any active campaign.

They analyse:

• Audience data
• Context (what page the user is on)
• Past behaviour
• Campaign goals
• Budget availability
• Bid strategy

The DSP then decides:

• Should we bid?
• How much should we bid?

1. A real-time auction happens (RTB).
   If multiple advertisers want that impression, they compete in a real-time auction.
2. The highest bidder wins.
   The winning advertiser gets the ad placement.
3. The ad is served instantly.
   The ad appears on the user’s screen almost immediately.
4. Data is collected. 

After the impression:

• Was it viewed?
• Was it clicked?
• Did it lead to a conversion?

This data feeds back into the system for optimisation.

Types of Programmatic Buying

Not all programmatic buying works the same way. There are different deal types depending on control, pricing, and inventory quality.

Open Auction (Open Exchange)

• Open to all buyers
• Real-time bidding
• Large inventory volume
• Usually lower CPMs

Pros:

• Cheapest entry point
• Massive reach

Cons:

• Less control
• Higher fraud risk if not managed properly

This is the most common type of programmatic buying.

Private Marketplace (PMP)

• Invitation-only
• Selected advertisers can bid
• Premium publishers

Pros:

• Higher-quality inventory
• Better transparency
• Improved brand safety

Cons:

• Higher cost than open auction
  

PMPs are used when brands want better control but still want auction-based pricing.

Preferred Deals

• Fixed CPM negotiated upfront
• No auction competition
• Buyer gets first access before the inventory goes to open auction

This offers:

• More predictability
• Premium placements
• Controlled pricing

Programmatic Guaranteed (Automated Guaranteed)

• One-to-one deal between advertiser and publisher
• Fixed price
• Fixed inventory
• Guaranteed impressions

This works like traditional direct buying, but the execution is automated through programmatic systems.

It is commonly used for:

• Large brand campaigns
• High-impact placements
• Homepage takeovers
• CTV premium slots

5. Programmatic Channels (All Formats)

Programmatic is not limited to banner ads. It covers almost every digital channel.

Display

• Standard banner ads
• Rich media

Display is the foundation of programmatic advertising.

Video

Instream:

• Pre-roll (before video)
• Mid-roll (during video)
• Post-roll (after video)

Outstream:

• Appears within articles or web pages

Video inventory usually has higher engagement than display.

Connected TV (CTV) & OTT

• Smart TVs
• Streaming platforms

These ads are:

• Full-screen
• High impact
• Often non-skippable

Programmatic CTV is growing fast because audiences are shifting from traditional TV to streaming.

Audio

• Music streaming platforms
• Podcasts
• Internet radio

Audio ads are:

• Screen-free
• Strong for awareness
• Good for frequency building

Native Ads

Native ads blend into the content environment.

They:

• Match the look and feel of the platform
• Appear less intrusive
• Often have higher engagement rates

Digital Out-of-Home (DOOH)

 

Programmatic also powers:

• Digital billboards
• Mall screens
• Airport displays
• Transport hubs

Ads can be updated dynamically based on:

• Time
• Weather
• Location

In-App Advertising

• Mobile apps
• Gaming inventory

In-app ads often perform well because:

• Users spend significant time in apps
• Targeting can be more accurate

7. Data in Programmatic Advertising

Data is the backbone of programmatic. It determines who sees the ad.

First-Party Data

Collected directly by a brand.

Examples:

• Website visitors
• CRM lists
• App users
• Email subscribers

This is:

• The most accurate
• Privacy-compliant when properly managed
• The most valuable

Second-Party Data

Data shared directly between trusted partners.

For example:

• A retailer sharing data with a brand supplier

It is more reliable than third-party data.

Third-Party Data

Purchased from external data providers.

It offers:

• Large scale
• Broader audience access

But it is:

• Less accurate
• Affected by privacy regulations

Data Management Platforms (DMPs)

DMPs:

• Collect data from multiple sources
• Organise it
• Create audience segments
  

They are mainly cookie-based and used for media targeting.

Customer Data Platforms (CDPs)

CDPs focus on:

• Individual-level profiles
• Omnichannel identity
• Personalisation

Unlike DMPs, CDPs are built around first-party data.

Cookie & Privacy Changes

The industry is moving away from third-party cookies.

As a result, brands are shifting toward:

• Stronger first-party data strategies
• Contextual targeting
• Cohort-based approaches
• Universal ID solutions

Privacy regulations are reshaping how targeting works, but programmatic is adapting.

8. Bidding and Auctions

Auctions decide who wins each impression.

Real-Time Bidding (RTB)

Each impression is auctioned individually.

Bidding is:

• Automated
• Data-driven
• Strategy-based

Header Bidding

Publishers allow multiple SSPs to bid at the same time before calling their ad server.

This:

• Increases competition
• Raises publisher revenue
• Creates more competition for buyers

Second-Price vs First-Price Auctions

Second-price auction: Winner pays slightly above the second-highest bid.

First-price auction: Winner pays exactly what they bid.

Most exchanges now use first-price auctions.

Bid Shading

In first-price auctions, buyers risk overpaying.

Bid shading algorithms:

• Predict fair market value
• Automatically reduce bids
• Improve efficiency

9. Ad Delivery & Creative

The auction only selects the winner. Creativity determines performance.

Types of Creatives

• Static banners
• HTML5 interactive ads
• Native assets
• Dynamic Creative Optimisation (DCO)
• Video ads
• CTV creatives

Dynamic Creative Optimisation (DCO)

DCO changes ad elements in real time based on data.

It can adjust:

• Location
• Weather
• Time of day
• User behaviour
• Product availability

Example:
A retail ad shows umbrellas when it’s raining in the user’s city.

Ad Serving

An ad server:

• Stores creative files
• Delivers ads
• Tracks impressions
• Tracks clicks
• Tracks conversions

It ensures accurate reporting and measurement.

10. Fraud, Verification & Brand Safety

Programmatic offers scale, but it also has risks.

Common Types of Ad Fraud

• Bot traffic
• Domain spoofing
• Click fraud
• Fake impressions
• Pixel stuffing
• Ad stacking

Fraud wastes ad spend and distorts performance data.

Prevention Tools

Advertisers use verification platforms like:

• Integral Ad Science (IAS)
• MOAT
• DoubleVerify
• HUMAN Security

These tools help:

• Detect fraud
• Measure viewability
• Protect brand reputation

Brand Safety

Brand safety ensures ads do not appear next to harmful or inappropriate content.

Methods include:

• Exclusion lists
• Inclusion lists
• Keyword blacklists
• Inventory filtering (e.g., GARM standards)

Brand suitability goes further by aligning placements with brand values.

11. Measurement, KPIs & Attribution

Measurement determines whether campaigns are working.

Brand KPIs

• Reach
• Impressions
• Viewability
• Video Completion Rate (VCR)

These focus on awareness.

Performance KPIs

• Click-Through Rate (CTR)
• Conversion Rate (CVR)
• Cost Per Acquisition (CPA)
• Return on Ad Spend (ROAS)
• Customer Acquisition Cost (CAC)

These focus on outcomes.

Attribution Models

Attribution assigns credit for conversions.

Common models:

• First-click
• Last-click
• Linear
• Time decay
• Data-driven attribution

Each model answers a different business question.

11.4 Lift Studies

Lift studies measure incremental impact.

Types:

• Brand lift (awareness, recall)
• Conversion lift (incremental sales or actions)

They help separate correlation from true impact.

12. Optimisation Techniques

Optimisation is continuous in programmatic.

Common methods:

• Bid adjustments
• Frequency capping
• Creative rotation
• Audience refinement
• Site targeting updates
• Blacklist/whitelist updates
• Budget reallocation
• Dayparting
• Device optimisation

Programmatic is not “set and forget.”
Performance improves through constant adjustments.

Conclusion

Programmatic advertising has changed how digital media is bought and sold. What used to take days of negotiations now happens in milliseconds through automated systems.

At its core, programmatic is about efficiency and precision. It connects advertisers to the right audience using data, auctions, and real-time decision-making. It works across display, video, CTV, audio, native, in-app, and even digital billboards.

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