An Advanced Approach to Advertising

Programmatic ads are creating all the buzz in the digital world. The shift from the traditional way of advertising to programmatic is quite prominent considering the report where it shows a steep rise in the spend on programmatic display advertising in the US from a $106 billion dollar in the year 2021 to a whooping expected $142 billion dollar in the year 2023.

The brand new way of advertising

Programmatic advertising refers to a system where the processes as well as transactions associated with the purchasing and dynamic placement of advertisements on websites are automated. The entire process of purchase and placement of ads takes place in less than a second.

An auction system known as real-time bidding is used to place the advertisements. Transactions are managed between the publisher or the supply side and the advertiser or the demand side. A criteria is set for buying the advertisements by the advertiser through a software interface or the demand-side platform. The publisher makes use of the supply-side platforms. When the software associated with the publisher sends out notification revolving the availability of ad inventory or ad spaces, the spaces so available are given out for real-time bidding.

As per the set criteria, the process of bidding begins for the ‘impression’ which is a single view of an advertisement by a single individual and the entire process is automated. The advertisers do the bidding based on the perceived value of the ‘impression’. The time taken for the entire process is the time taken for the web page that has been requested to load.

Programmatic advertising makes use of algorithmic software for carrying out the entire procedure within a fraction of a second. The whole idea is to buy the best ad space available at the best price and it should be able to target the right audience at the right time. A lot of factors are considered while targeting the right audience which includes behaviour of the user, location, online activity and demographics.

The benefits involved

Programmatic advertising offers a whole lot of benefits that probably were unimaginable just a decade ago. It is getting finer every day as technology advances. A number of ad exchanges as well as networks are supported by Programmatic Advertising. This provides advertisers the access to a large number of ad spaces on some thousands of websites at a single go. This kind of advertising provides real-time data about the placements of ads and the entire activity. This in turn helps in the maximisation of transparency.

There are several platforms that play their significant roles in carrying out the activities involved in programmatic advertising. Platforms associated with programmatic advertising constitute a part of the entire system. Each part of the system works in unison to ensure that both the publishers and the advertisers are benefitted. Google Ads or Google Adwords is a demand-side platform. However the inventory associated with this demand-side platform is only limited to Google’s inventory. As an advertiser it is desirable to fetch access to as much of inventory so as to bring about an increase in the chances of getting placements that bring in more profit.

Digital advertising and programmatic advertising

Digital advertising on one hand hopes to reach out to a wide network of audience and find the potential ones among that, programmatic advertising on the other hand brings together the best elements of technology and the knowledge and expertise of humans for the perfect purchase and placement of advertisements.

Programmatic is continuously evolving and new changes are being ingrained to this form of advertising. New advancements in machine learning and artificial intelligence can be used for the purpose of prediction. Artificial intelligence can be used for a more accurate placement of advertisements. This in turn leads to lowering of costs.


Programmatic advertising is gaining popularity in the marketing world as it helps to reach out to the right audience at the right time and uses algorithmic software for the entire process. It is a more cost-effective approach. As time elapses and technology advances, programmatic advertising also gets finer in its unique way of functioning.

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