Programmatic Advertising : Meaning and Benefits

Programmatic Advertising

Programmatic advertising involves buying digital media space with the help of automated technology and algorithmic tools. It is related to the process of buying and selling an advertising space with strategic caution. Through this form of advertising, businesses can advertise on digital screens. Advertisers automate the entire process, defining the parameters of purchasing digital ads from various platforms like websites, social media, apps, mobile, and videos. Before the introduction of programmatic advertising, there was a manual process to buy digital ads which was expensive and unreliable. 

Programmatic advertising was introduced in the mid-90s. In recent years it has gained popularity among marketers. Since 2020, studies have found out that more than 80% of marketers are spending on programmatic advertising.  

How it works

Programmatic works as the link between the publishers who have ads space on their website and the advertiser who wants to buy the ads space for their promotion. When the business wants to advertise their product or service they contact a programmatic ad agency. By using the demand side platform(DSP), the agency automates the process of buying ad impressions to meet the campaign goals. 

DSP allows the agencies to buy ad inventory from different publishers. DSPs are responsible for aligning the ads to the target audience by using a data management platform (DMP). In targeting the right audience, advertisers consider various factors such as location, demographics, user behavior, and online data.

The website sends the request to the supply-side platform (SSP) when the target audience visits it. The publisher uses SSP to sell ads. The auction is conducted by SSP among the buyers and DSP is connected. 

Benefits of Programmatic Advertising

Targeting the right audience

It allows the business to have strong audience targeting features. Advertisers communicate ads to the right audience. During the process of ads creation, there will be options to target the audience based on location, gender, age, purchase history, and other factors. Programmatic will send the ads to the right audience and convert potential customers into actual customers. 

Increased audience reach

The online presence of the business can be increased through programmatic advertising. Businesses get to promote their brands on various platforms with little effort from their side. Ads of the business can reach a large mass of internet users.

Automated advertising task

First, programmatic advertising uses algorithms for buying the best ad space for placing ads. Programmatic advertising manages the audience for ads, enhances the ads, tests various creative measures for effective ads. Along with this, such advertising manages and optimizes the campaign. All these tasks automate the advertising for the business or client. 

Flexible budget

The marketing campaign allocates the budget for programmatic advertising. There is the option for setting the budget. Also, the ease of targeting the audience and ad, automation, performance tracking etc. makes the effort and investment more efficient and effective. Such an effective and efficient approach helps businesses to manage their campaign on a smaller budget.

Improved ROI

By investing in programmatic advertising, businesses can expect higher returns from their investment. There will be an increase in the sales of the products as the larger mass gets to know about the product. Businesses can test different ads on various platforms and increase the engagement of the customers. 

Minimizes wastage

In advertising wastage of ads is the major problem faced by the business. There is the problem of overbidding and failure of meaningful interaction with the customers. One of the benefits of programmatic advertising is its cost-effectiveness and minimum waste. 


  1. Search Engine Journal

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