What is Programmatic Advertising? It’s Working, Uses, and Strategy.

What is Programmatic Advertising? It’s Working, Uses, and Strategy.

If you own a business and go for online advertising. You must have heard of Programmatic advertising and how this advertising strategy is changing the scenario online. Programmatic advertising is one of the top 2020 digital advertising trends. Moreover, it has become one of the most popular ways of running ad campaigns. In this article, we will cover what is programmatic advertising, its types, strategies, and benefits.

What is Programmatic Advertising?

Programmatic advertising is also called Programmatic marketing or media. It is the process to automatically buy and sell ads in real-time through a computerized bidding system. It does not require any human negotiation because it is optimized with machine learning and artificial intelligence (AI). Hence, display ads on the internet. Programmatic advertising includes ad slots for a wide range of digital channels such as display, mobile, video, streaming, and television.

How does it work?

Programmatic advertising uses artificial intelligence (AI) driven algorithms which help to identify the users on their buying behavior, and various data like demographic, browser cookies. These data help in determining which ad would be the best to display on the user’s timeline.

Advertisers use a demand-side platform (DSP) to promote ad buying and a demand management platform (DMP) to operate third-party user data. Further, the publisher uses a supply-side platform (SSP) to handle all the ad stocks. Lastly, based on the bids the SSP decides which ads to be displayed. Some common terms of programmatic ads that you should know –  

  • Real-Time Bidding (RTB): It is the process of buying and selling real-time auctions and placing bids. It is a part of the programmatic advertising ecosystem.
  • Ad Exchange: It is a technology platform where publishers meet advertisers and agree on a price to display their ads.
  • Demand Side Platform (DSP): It is a software that allows advertisers to purchase and manage multiple ads inventories through one interface.
  • Demand Management Platform (DMP): It is a platform used to collect, analyze and segment the first, second, and third-party audience data.
  • Supply Side Platform (SSP): It is an advertising technology (AdTech) platform used by publishers and DOOH owners to manage ad inventory, sell and earn revenue through digital ads.

Why use programmatic advertising?

  • Programmatic advertising target the massive number of the right audience. You can be highly specific in targeting the audience for your ads. Moreover, targeting options include demographics, location, interests, etc.  
  • It speeds up your ad setup and campaign management. It can save you time with the AI algorithms. The advanced AI system can bid and buy ad space for you in real-time.
  • It let you save more money from the budget than other advertising methods. Having an advanced AI system can streamline your ad management. Therefore, it can help you reach out to the maximum number of relevant users. Further, for the more cost-effective benefits of programmatic ad buying, you can use Google.
  • Programmatic ads use machine learning to your benefits. It automates the bidding and buying process as instructed by the human. It totally operates on your setting and commands so no need to worry for the expertise. 
  • Lastly, this process of ad buying uses browser cookies that share information of the users like their browsing history. Moreover, it bids on the maximum relevant users and helps in ad placements.

Also Read: Latest Trend of Digital Marketing

Effective Strategy to set up programmatic ads

If you are ready to set up your campaigns with programmatic ads. We are here to provide you with the best effective strategy to implement your campaigns.

Know Your Target Market

Firstly, you have to research your target market. Being new to this advertising method you have to understand basic common terms used in programmatic ads such as DSP and SSP. This step will help you target the right audience. Ask yourself, why people need your products or services or why they should choose you among others. However, In the beginning, you can use age, location, interest as a targeting option, don’t be highly specific. 

Set Your Ads Goals

Secondly, In the online advertising setting your goals is the most important aspect. It will define what you want to accomplish from these ads. It includes how many purchases have been made, form submissions, users visit your sites, etc. Increase brand awareness of your products or services. Focus on the traffic and click rates on your sites.

Create Creative Content Ads

Content is the most important aspect of every ad. If your ad content is innovative and new it will help you gain more relevant visitors. You can include images, Gifs, etc . on your ads.  Moreover, it is important to gain the audience’s attention, convey your message clearly, and provide value to your audience with your ads.  

Submit Your Bids

After having a target market, goals, ads, and a budget for your business. You can go place your bids. These bids define the maximum amount you will pay for a view on your ads. Whenever these bid auctions will launch, your AI system will bid for you as instructed by the experts.

Review Your Ads

Lastly, keep analyzing your ad result. According to the reports, programmatic ads are seen between 44% and 55%. Keep a check on day-to-day processes like bid, target reach, goals, and prioritize your campaign maintenance. Take a proactive approach to monitor your ad campaigns.

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Programmatic advertising is the future of advertising. It can provide your business with immense benefits in the online marketplace. Further, it is the best time for you to rise with this advertising strategy. It can save your business advertising budget as well as perform better online ad campaigns. 

We hope this article has provided you with immense knowledge of Programmatic advertising. So, Hurry up and use this advertising strategy for your ad campaigns.


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