10 Questions To Ask Before Hiring A Programmatic Advertising Agency

By Alexandra O’Neil

Programmatic advertising offers efficient, data driven media buying across display, video, audio, and connected TV. But like most professional services, the technology is only as good as the agency running it. Many businesses sign contracts without understanding where their budget is actually going, and by the time performance doesn’t live up to the hype, months of spend have already been wasted on unclear reporting or padded fees.

Every business owner dreads this situation. As a SMB, the last thing you want to do is waste money without a return. Thankfully, most of these situations can be prevented by asking the right questions upfront and determining the right partner for you.

TL;DR: Before signing with a programmatic advertising agency, ask about transparency, channel coverage, measurement, contract flexibility, and whether they actually manage the technology in-house.

Where Will My Ads Run?

Always ask whether the agency can produce a placement level report showing the exact sites, apps, or streaming platforms where impressions ran, as opposed to just an overall summary. Ad fraud and hidden supply chain fees remain a major cost in this industry, and agencies that are unwilling to share placement data may be hiding markups baked into the media cost. A trustworthy partner will treat this information as part of their standard reporting.

What Channels Are Actually Covered?

Some programmatic agencies still limit their work to banner display, while true programmatic buying today spans streaming audio, connected TV (CTV), digital out-of-home (DOOH), ChatGPT Ads, and more. A single-channel agency limits the reach a campaign can achieve and may push a client toward the channel it knows best rather than the one that fits the audience.

Many businesses get started with a programmatic agency thinking that they’ll get a full suite of channels for a one-channel price, which is why it’s important to be clear on the channels and cost.

How Is Performance Measured (And How Often)?

Ask which numbers the agency reports on, including impressions, viewability, click through rate, conversions, and return on ad spend (ROAS), and how frequently those reports arrive. Weekly or biweekly reporting cadences generally allow for faster optimization than a single end of month recap.

Many other professional services can get by with a once-a-month call, but when you’re actively spending budget on a placement, it’s important to make sure it’s actively working instead of learning at the end of the month that a pivot is needed.

What Are Minimum Budgets And Contract Terms?

Programmatic buying is built around flexibility. Ask whether the agency requires a minimum monthly spend or locks clients into long term contracts, or whether budgets can flex month to month as performance data comes in. Long lock-in periods can work against a business trying to test and adjust its strategy in real time.

There are new channels and platforms constantly being tested and rolled out. If your business is exploring a new channel like ChatGPT Ads, it’s important to have an agile budget.

How Is Audience Targeting Built?

Strong programmatic performance depends on targeting built around a specific customer profile. Ask the agency to walk through how they research and build audience segments for a business like yours, and request examples of how targeting has changed based on campaign data.

Who Manages The Bidding?

Some agencies manage direct relationships with demand side platforms (DSPs) and control bidding strategy in house. Others resell access to a platform and add a markup without meaningfully managing the buy. Ask directly whether the team bidding on your behalf works inside the DSP daily, and request specifics about which platforms they use.

What’s Your Experience Working With Small Business Budgets?

Sometimes finding the most expensive Fortune 5000 programmatic agency won’t work in your favor. If they’re used to multimillion dollar budgets, they may not know how to most effectively help a business of your size.

Agencies built for enterprise budgets are not always equipped to make a smaller budget perform well. Ask for case studies or examples involving budgets similar in size to yours, along with the results achieved.

Is Creative Production Support Offered?

Every channel has different creative specifications, from CTV video length to DOOH sizing. Ask whether the agency helps produce or adapt creative for each channel, or whether the client is expected to supply finished assets for every placement.

This is an imperative question. If you don’t have an editor or graphic designer on your team, you will need to find a programmatic agency that offers creative support.

What Are Your Data Privacy And Compliance Practices?

Cookie deprecation and expanding privacy regulations have changed how audience data can be collected and used. Ask how the agency approaches compliance and what alternative targeting methods they use as third party cookies phase out. The Interactive Advertising Bureau publishes ongoing guidance on privacy standards worth reviewing before signing an agreement.

Who Will Be My Point Of Contact?

Find out whether the account will have a dedicated contact familiar with the business, or whether it will be passed between rotating junior staff. Consistent communication tends to correlate with better campaign management over time.

Choosing A Programmatic Agency

Answering these ten questions honestly takes a level of confidence that not every agency has. Some will hesitate on the placement level reporting question, while others go quiet on whether they manage DSP bidding in house or simply resell access with a markup attached.

Floodlight was built around answering these questions without hesitation. Our team manages DSP relationships and bidding strategy directly, runs campaigns across display, streaming audio, CTV, DOOH, and social. Budgets flex month to month rather than locking into long term contracts, and every account gets a dedicated point of contact instead of being passed between junior staff. For businesses working with budgets that enterprise focused agencies tend to overlook, our team has a track record of building programmatic strategies sized appropriately for smaller spends.

If a current or prospective agency cannot answer these ten questions clearly, it may be worth a second conversation with Floodlight to see how a transparent, in-house approach compares. Reach out to our team today to start the conversation.