Programmatic Advertising

by | 27 Jun 2022 | Sales & Marketing

There is no denying that buying ads for promotional purposes has always been a critical promotional strategy for businesses.

If you intend to gather an audience for your business, it is important to focus on the right placements for your ads. Hence, you should buy ad space from the right platforms that target specific audiences. Pay Per Click works similarly, but with a small difference. While PPC is an auction where 8-9 bidders gain the first position on the SERP (Search Engine Results Page), programmatic advertising is little different. It has two auctions: first price and second price auctions. In both actions, multiple people bid and the highest bid wins the auction.

Many times, a brilliant and creative Ad does not end up reaching its true potential in terms of views and eventual leads. This is when you can turn towards the game-changer –  Programmatic Advertising. Don’t worry if you are not familiar with the term. We plan to break down the subject, and give you the correct perspective on programmatic advertising.

What Is Programmatic Advertising?

Simply put, programmatic advertising is an automated way to optimise digital campaigns through AI. It is a system that automates the process and transactions that are involved while purchasing ads for websites or apps. Rather than buying ad space from different fields, programmatic advertising provides an AI-optimised solution that is built to increase efficiency and transparency between the advertiser and publisher. To be more precise, programmatic advertising is basically the use of technology, data and algorithms to buy or sell digital ads in an automated way. The traditional method, also known as manual media buying, is a simple method that is based on the human to human interaction and does not involve using technology or algorithms.

The numbers do not lie!

According to a study, it is estimated that around 88% of total digital ad spending is done via programmatic advertising. The popularity of this method of advertising lies behind the real-time auctions or bidding that takes place. This method does not use a generated cookie method, instead, it uses artificial intelligence and technology-based learning to advertise ads in real-time. The process is more cost-effective and provides efficient results with better reach to your targeted audiences.

Successful Companies Using Programmatic Advertising

The dynamics of the advertising market are changing continuously, and the best way to get to the top is to take marketing strategies into your own hands, and many leading businesses are doing exactly that. Companies like Google and Netflix have launched their own programmatic advertising where they can focus on ad campaigns individually, and generate specific and accurate information about their users.

  • According to a study, 64% of corporate companies in America have built in-house agency forums (IHAF), and are now transitioning to in-house media or programmatic marketing.
  • A survey conducted in 2017 by ANA, found that around 35% of brands have expanded their in-house programmatic media.
  • With programmatic advertising, a company can quarter their total amount spent by cutting out the middlemen.
  • Google has launched a ‘Performance Max campaign’ for better access to Google ad inventory.


Companies with in-house programmatic marketing are,


Netflix has an advertising budget of $80 million to support its own marketing strategies. They have started their own online media campaigns in 2018, and the results are splendid. With programmatic marketing, we can be assured that Netflix is not going to settle for less with its digital presence.


Kellogg’s has developed in programmatic marketing since 2014. They have successfully accomplished their goals with a 70% to 80% increase in viewability rates. Also, Kellogg’s has achieved 2 to 3 times better targeting with this successful campaigning process.


Working on innovation every other day, the company is expected to boost in-house programmatic marketing. Their total digital ad spend is $22 million and they are trying to reach out to different sectors to keep up the work.

It is believed that businesses that have a goal to increase sales or add more customers to the business should prefer programmatic advertisements for instant results. Programmatic advertising provides better transparency and total visibility for ad campaigns. Whether a small business or multinational company, programmatic advertising allows you to attain a better audience as well as customers for your company.

Unique Features Of Programmatic Advertising

Purchasing programmatic advertising is a more effective and efficient solution for a business, whether small or well established. Some features of the prog. adv. include:

1. Machine Learning Algorithms

Machine learning algorithms help to review the data and distinguish between the most suitable platform or website that could cater to your target audience. This process is backed by AI which makes it quick and accurate.

2. Audience Insights

Traditional ads are not specific enough to generate audience feedback, which could result in a potentially low rate of PPC. With programmatic media, you get instant feedback on whether the audience is engaged with the advertisement or whether it has been a failure. You can also identify the right time of the day or week that caters to the most relevant users, you can figure out the age group of the audience engaged in your ad and this data can help you to design better ad campaigns and engage more customers.

3. Precise Audience Targeting

Programmatic advertising focuses on providing results for the precise goals of your ad campaign. The advertiser can easily figure out the audience he/she wants to target on different channels. You can seek a basic idea of behaviour, actions, demographics, location, relationship status, interests, income etc of the targeted audience.

4. Bid Management

Programmatic advertising is based on a real-time bid or auction. This is an automated process through which you can set the bid or budget that is required for buying the ad. There are different tools that involve the bid management process. Working with different ad networks means adding more tags to the website, which results in latency issues for the website, and it is impossible to cater to all the inventory you are trying to share with customers. With real-time bidding, publishers don’t have to add multiple tags on the website, instead, they share just one tag that is redirected to Supply-side Platforms or SSP. Real-time bidding or RTB was designed to allow publishers to target audiences and inform them at a particular time about the product with just one click.


With bid management, you can manage the price of your bid and the impressions of your ads. In most of the auctions based on programmatic advertisements, you must set a bid that is neither too low nor high. If you want to make good impressions from your ad, do not bid too low

5. Campaign Reporting and Optimization

Manual or fragmented ad networks can cause discrepancies in the data source, resulting in a misguided ad campaign that leads to losing potential clients. End to end programmatic advertising has custom solutions to maximise yields. Campaign optimization is the process a marketer adopts to enhance the performance of digital impressions in different digital channels. There are many tools that monitor the performance of campaigns. Programmatic ads can be adjusted and optimised in a short duration of time. You can effectively change the campaigning when required. Campaign reporting and optimisation can make your work more efficient and quick.

Traditional or regular ads are not that effective when compared to programmatic ads. Industries like travel and tourism retail etc. must use this type of advertisement for better results instantly. The possibilities of programmatic ads are endless and you can bid on the camping according to your needs.

How You Can Use Programmatic Advertising To Scale Your Business?

It seems like programmatic ads are going to be the future of online marketing and advertising. With such accuracy in your marketing strategy, you can easily build a strong customer base.

If you own a business, the process of programmatic advertising contributes to increased transparency, real-time measurement, instant results on sales and responses, increased targeting and versatile audience reach capabilities.  It is expected that in the coming year, many companies will display their advertising through programmatic marketing and individual campaigns.

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