Programmatic advertising


Programmatic advertising refers to buying and selling digital ads through automated platforms. It is steadily replacing the traditional model of digital advertising. Traditionally advertising used to involve human negotiations, requests for proposals (RFPs), and manual insertion orders

But with Programmatic Advertising, the software takes over the menial tasks previously done by human people while buying ads. In direct media buying, you would have to look for publishers, negotiate the price, and do ad placement in person. With Programmatic technology we streamline the ad-buying procedure and make it cheaper by removing human interactions where it's feasible.

Programmatic Ads let marketers spend more time on tailoring their targeting and customizing campaigns, removing dispensable ad-buying procedures. It is a data-driven appeal that substitutes inefficient manual practices prone to human error with effective technology. This method gives marketers the ability to place their ads on websites with little human interaction because of AI-powered algorithms.

Algorithms collect data from internet users to select advertisements that cater to their needs.

Let's look at an example of how Programmatic Advertising would look in real life Advertisers of sunset glow want to sell more sunscreens.

They hire a programmatic advertising platform that is able to identify and segment online consumers through things like:

Demographics (male / female / 16 – 40),

Geography ( sunny areas e.g. California),

Interests (surfing, going to the beach, sunbathing),

Behaviours (consume beach content on their break),

Time of day (7-10PM)

Weather (sunny)

Device (smart phones)

After collecting the data, the Programmatic platform would use said data that is collected in real-time to pick out audiences on the internet that would profit the best from these software ads. Then it buys digital ad inventory from an auction in places the audience would like to see the ads.

There are various types of Programmatic Advertisements such as Display Ads, Video Ads, Social Ads, Audio Ads, and Native Ads. Programmatic advertising enabled companies to capitalize on their consumer data and reach audiences more cost-effectively.