Programmatic Advertising means programmatic buying or marketing. It’s the automated buying and selling of digital ad space. It means using software to automatically buy and sell ads. The common objective for all advertisers is to have their ad shown to the right audience in a timely fashion for ideally the least cost. The goal for sellers of ad space is to make money by filling their inventory.
For brands, programmatic advertising means ad spend optimization.
On the marketing end, there are:
- Demand Side Platform (DSP): Agencies like War Room are DSPs who utilize software technology and connect clients to optimal ad space online and look for the best deal.
- Supply Side Platform (SSP): SSPs focus on selling programmatically. They negotiate ad space for sale (inventory) and their duty is to fill ad spaces for profit.
War Room’s Kedet is an artificial intelligence consisting of intricate algorithms that adjust ad bids in real-time automatically.
According to marketing forecast studies, 65% of online ads are traded programmatically in 2019 and will only steadily increase.
Programmatic marketing started from display advertising in 1994 on Hotwired.com, known today as Wired.com. In 2000, sites like Google became emerging ad networks and because they had access to more reach, they began building targeted ad networks. Soon, real-time bidding software came about, which connected DSP and SSPs to the ad networks, which uses available data to deliver hyper-targeted ads.
Programmatic advertising would not exist without access to personal information. Demographic metrics like location, age, search history all allow advertisers to better pinpoint their target audience.
Programmatic Advertising’s main types include:
- Search Advertising (PPC)
- Display (Online display ads across sites)
- Social (creative messaging and wide engagement)
- In-Stream (before, during or after video streams)
- Native (machine learning + contextual signals)
- Shopping Ads (product information)
- In-App (rich data for engaged users)
- Metasearch/Hotel Ads (rates, times, costs for airlines, hotels and travel brands)
Display ads do not equal to Programmatic ads unless they are used by programmatic technology to buy ad placements automatically.
Real-Time Bidding does not equal Programmatic. 90% of RTB is programmatic but sometimes advertisers use fixed-price programmatic systems to buy ad space.
Your advertising budget may vary. An agency like War Room allows you to skip agency fees and allows for more direct buying.
Why you should consider programmatic advertising:
- It’s safe and transparent
- The AI does machine learning the more you use it, which means more targeted ads
- It allows more reach to your brand’s target audience!
- Less waste on ad spend