An Introduction to Programmatic Advertising

Programmatic advertising is a revolutionary concept in the market scene that is growing exponentially with time. For those who choose to utilize programmatic advertising, it is proving to be extremely effective while those micromanaging their advertising campaigns may still be averse to the idea or probably just unaware of what it really is.

What is programmatic advertising?

Probably a counter-intuitive name for the advertising concept, programmatic advertising is about letting an AI decide how, where and when are your ads to be displayed.

The aim is to draw in converting viewers by automatically buying appropriate ad spaces for your campaigns. If used properly, it can prove to be highly effective through the “trial and error” style of marketing is still up and about and not near extinction.

With big advertising, even those like Google, offering some variant of programmatic advertising, it’s is somewhere easy to incorporate to your normal channels as an adjunct.


The Paradigm shift

If you belong to the type of people who spend their time carefully crunching on numbers and micromanaging campaigns by choosing how each ad is to be placed to find most optimal spaces for your target market, you may at first believe programmatic advertising to be more of a gimmick.

However, with the marketing trends moving that way, anyone wanting to campaign smartly should adapt to it. The real culprit here seems to be Big Data.

Big Data is perhaps the industry supporting most social media websites. Facebook, Twitter, Instagram, and most other social media platforms tend to take information to be utilized on their platforms and sell it.

The future of advertising is thus linked hugely to this as once the information is chained together, you will have a clear picture of what things is the consumer likely to purchase or click on.

The drawback with Big Data is the fact that it is big, and even a team of individuals working on it all the time cannot process this huge a volume, timely. Thus, to reach a reasonable conclusion with this information, algorithms, and AIs are relied upon. And that is where programmatic advertising steps in. It looks into these volumes of data, draws to a conclusion, and works at no end to ensure that your ads are displayed at the most appropriate places at all times.

Besides this, there are other reasons that make programmatic advertising a good option too. It provides for the potential to uncover target markets, which you may have never explored or thought of breaking into, simply with the information it has at hand to process. It will thus bring for you a whole lot of potential customers to interact with and a circle of converting buyers in those who you advertise to. Is that not a radical paradigm shift in the marketing and advertising world?


Types of Programmatic Advertising

As some people might believe, the programmatic advertising isn’t the be-all, end-all phrase. It has few different types in the market.

Spending the money and getting direct ad buys is known as programmatic direct advertising. Being easy and incredibly simple, a majority of programmatic advertising done currently is done through direct buying of ads.

However, the direct precursor of programmatic advertising as a whole was Real-time Bidding. It involves bidding for ad space in a real time auction. On applying programmatic formula to it, you are replaced by an AI to choose where to bid.


The Bold Advantages

In the trial and error testing on ad placements, many marketing campaigns tend to blow most part of their marketing budget.

As put my marketing experts, the idea behind programmatic advertisers is to put “vegan food ads in front of real time vegans.”

In the trial and error ad placement, most onlookers are hardly interested in your product or service, lowering your conversion rates and ROI despite the huge marketing budget.

Programmatic advertising works on the idea of being able to plug in, pay upfront, study performance indicators, and go with the flow without having to worry of the hassles of haggling. While the quality is still being worked upon, some programmatic advertising programs are bit closer to what you seek.

The advantage is that you are reaching more potential converting customers while saving on time and money. The process however relies on availability of data and thus has scope of delivering better, in case more intuitive approaches are discovered.

Programmatic advertising can be applied cross platform, on traditional channels, as well as mobile users.

Also, how to you see automated split testing? For most marketers it is a time consuming process that required them to develop advertisements as well as spend a large amount of time crunching numbers to figure which type of ads perform best in which ad spaces. With AI backing, you can rather let the machine sort that out for you in real time. With 30% fraudulent clicks in general campaigns, the machine will identify the fraud clicks and eliminate those ad space to minimize the costs incurred on them over time.


Is it a reality yet?

The fully programmatic advertising with unsupervised algorithm handling everything from start to end are still a thing of the future. However, Facebook ads, Google Ads, and a lot more sources are working well at delivering things where to ought to be delivered, though a small amount of work is needed at your end too.

With Artificial Intelligence programs being improved continuously and data becoming more focused, the idea of fully automated advertising too will soon convert into reality. The creative will still be needed for the copy to be utilized to make the sale, however the involvement and time spent in driving traffic will be minimized.


What does this mean for me?

To deliver great results for clients, there are ad agencies that utilize programmatic advertising to some extent. While it will tend to increase your ROI, your choice of opting for this technology is entirely personal and depends on your type of business and advertising budget.

Despite not being perfect, it is still a major leap than an average person’s scope of processing data for best ad spaces. If predictions are to believed, the programmatic advertising will be depended upon entirely by the advertising industry by late 2020.



While it still requires a decent amount of work to reach perfection, programmatic advertising is still revolutionary and ready to take the marketing world by storm. You could invest in it if you are truly looking to optimize your time and budget and get maximum ROI advantage.

“If you tell the truth, you don't have to remember anything.”
― Mark Twain

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