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Programmatic advertising refers to the process of utilizing technology to buy and sell digital ads. In other words, it uses an automated process to purchase digital ad inventory across the web, mobile, apps, video, and social media within the advertiser-defined parameters.

Programmatic advertising refers to the process of utilizing technology to buy and sell digital ads. In other words, it uses an automated process to purchase digital ad inventory across the web, mobile, apps, video, and social media within the advertiser-defined parameters.

Programmatic advertising utilizes workflow automation and ML algorithms to deliver the most effective ads to audiences based on various signals, like customers’ shopping patterns and online behavior.

As the name suggests, programmatic advertising uses the power of programmed algorithms by targeting a specific audience to increase the conversion rate for businesses. This approach is better than traditional advertising strategies because it enables marketers to perform real-time ad-bidding and acquire new customers.

What Are The Types Of Programmatic Advertising?

The following are the main types of programmatic advertising :

  • Real-Time Bidding

This type of advertising refers to the open auction for ads in the marketplace. In other words, it is the availability of ad slots for ad buyers and sellers through an open auction bidding style.

It is an easy-to-setup model which can be optimized. However, the downfall of the model is that it lacks transparency.

  • Private Market Place

Private marketplace programmatic ad is similar to real-time bidding but primarily works on an “only invite” basis. It is a private auction where the inventory is reserved for select advertisers.

Websites mostly use private marketplaces to increase their readership. In addition, this model helps advertisers be aware of the websites that display their ads, thereby allowing them to check and analyze their ROI quickly.

  • Preferred Deals

Advertisers can choose their ad inventory at a fixed price when it comes to preferred deals. These advertisements are also referred to as spot buying and use the approach where both the buyers and sellers agree on a target and price.

  • Programmatic Guaranteed

Programmatic guaranteed or direct programmatic advertisements tend to follow the traditional approach of media buying, where the ad buyer and seller negotiate on advertising terms on a one-on-one basis.

Top Reasons Why Brands Need Programmatic Advertising

The following are few important reasons that state why businesses need to start making their advertisements programmatic :

  • Allows To Spend Your Advertising Budget Wisely

Businesses can target users on a granular level with the help of Programmatic display advertising. With access to huge amounts of data, businesses can target viewers with the right message, in the right channel, at the right time.

This way, businesses can make their ad budget smarter by eliminating waste on viewers who are unlikely to be interested in your product.

  • Provides A transparent Way To Purchase Media

Many major brands would rely on agencies and third parties to handle their ad spend in the earlier days. However, brands can have full transparency over fees these days, with transparency over where and how much money is being spent on what; when it comes to purchasing media.

  • Optimization And Real-time Measurement

With programmatic advertising, businesses can measure the performance of each advertisement in real-time. Unlike traditional practices, advertisers need not wait for an excel sheet from their media agency to optimize the results of a live campaign.

Therefore, the Programmatic method allows advertisers to optimize and adjust their ads for improved results and clear oversight of their ad spend.

  • Multichannel Reach

Advertisers are now required to keep up their efforts with the increasing number of digital touchpoints of your average user. Programmatic advertising is leading the charge here by allowing businesses to reach audiences across multiple devices in multiple formats, thereby creating endless possibilities to increase audience engagement.

With the help of the right strategy and effective utilization of technology in place, your programmatic advertising campaigns will work best for your digital marketing campaign.

However, marketers need to make sure to test different messaging, experiment with new placements by target different personas to identify what works best for them.


With the increasing demand and popularity for digital advertising, programmatic advertising is evolving. It uses precise targeting tactics to segment the audience with accurate data. It combines the best technological advancements and human knowledge and expertise to make buying, placing, and optimizing ads easier.

Latest technologies such as Artificial Intelligence and Machine Learning are having a significant impact on advertising these days and are changing programmatic advertising trends.

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