What is media buying? Definition, platforms, processes

What is media buying?

Media buying involves purchasing ad space and time on traditional and digital media platforms like websites, YouTube, radio, out-of-home and TV.

Media buying aims to ensure an ad campaign gets the most exposure possible in the target market while spending the least. A media buyer is responsible for negotiating with publishers for ad inventory, researching proper ad placements, managing budgets and optimising ads to improve campaign performance.

Media buying is important because strategically purchased media can impact a campaign's success. Ads must be placed in the right locations, times and frequencies so that the right audiences see them. Media buyers can purchase ads across a mix of media running simultaneously to help drive the best results.

Media buyers work with media planners to plan and execute advertising campaigns.

Media buying vs media planning

While media buying focuses on getting the most impressions from the right audience at the lowest cost, media planning focuses on the strategy behind the campaign.

Companies determine which media most effectively reaches a particular audience during the media planning phase. It's important to note that media planning applies to all media a brand uses, not solely to advertising.

Media planning focuses on establishing an audience, conducting market research, establishing a budget and building key performance indicators (KPIs) for success. Media planners work with clients to understand the target audience for their offerings, which channels the audience uses, at what times and what type of messaging the audience is most likely to engage with. With this information, the planning team can select which channels to purchase ad space on and for what price.

Media buyers execute the actual purchase of the advertisement space after the media planning team has given them an understanding of marketing goals and target audience preferences. These are often sales or account executives responsible for finding relevant advertisers. The two parties negotiate placement, time and costs.

How do media buying platforms work?

Media buying is done in one of three ways:

Direct, where media buyers can purchase ads directly with a specific channel or publisher at a fixed cost per thousand impressions (CPM) with no bidding
Network, where bidding and purchasing ad space happens through demand-side and supply-side platforms
Programmatic, where media buyers use technology to buy and sell ads automatically

There are three components to an automated buying structure: demand-side platforms, supply-side platforms and ad exchanges.

Ad exchange marketplace

Advertisers and publishers buy or sell ad inventory through real-time bidding (RTB). These platforms aggregate ad inventory from various publishers and match them to advertisers' needs, serving as intermediaries.

The media buying process consists of the following steps:

Media planning. Research and strategy to determine the most effective channels, formats and placements for reaching your target audience. This step also includes determining budget and KPIs to track performance.
Negotiation and buying. This step involves securing ad inventory and negotiating the best rates and terms with publishers or platforms. It can involve direct, network or programmatic buys.
Execution and launch. In this step, the ads are deployed across select channels according to the media plan.
Monitoring and optimisation: Continuously tracking performance and adjusting to maximise campaign effectiveness. This includes monitoring KPIs, adjusting bids or refreshing creative to achieve the best ad performance.

Connected TV (CTV) and Over-the-Top (OTT) Advertising

As consumers cut the cord on traditional cable and move to streaming platforms like Netflix, Hulu, Amazon Prime and YouTube TV, CTV and OTT platforms allow for highly targeted, programmatic ad placements. Advertisers can target specific demographics, behaviours and even geographic locations. As a result, CTV ads often have higher completion rates than traditional TV ads. Additionally, dynamic ad insertion (DAI) allows for real-time ad customisation.

Interactive and immersive ad formats

Advertisers leverage formats like augmented reality (AR), virtual reality (VR) and shoppable ads to create interactive experiences. These interactive ads drive higher engagement and allow customers to experience products before purchasing.

Media buying isn’t just about securing ad space—it’s about strategically placing your brand in front of the right audience to achieve your marketing goals. By staying ahead of industry trends, leveraging data-driven advertising solutions, and refining your strategy through continuous optimisation, you can ensure your advertising dollars deliver maximum ROI.

Media Buying