• The Bid

What is Programmatic Advertising



Imagine this is 1990. You want to run an advertisement and you need space to show it. You are an advertiser and the medium that shows your ad is a publisher. You have to reach out to all those publishers, probably via emails to negotiate terms for showing your ads. As the internet users increased and so the publishers, it became increasingly difficult to reach out to all the publishers individually.


Then came the ad servers and ad networks which brought both the publishers and advertisers at one place which made these negotiations fairly easy. Then came programmatic advertising that change the way online advertising is done. So much so that, according to emarketer, close to 60% of all digital ads in US is now programmatic and it will account for 86% of all digital ad spend by 2021.



What is Programmatic Advertising?

Programmatic advertising is automation of buying and selling digital ad spaces or ad inventory. It connects buyers and sellers to complete the purchase of ad placements on trading platforms through a process called Real Time Bidding (RTB).


Why is it Programmatic advertising is so efficient?

Programmatic buying makes this complex ecosystem a successful one with powerful algorithms that lets you decide where to run your ads, when to show them and also decide on how much to pay. So as a company using programmatic advertising, you have literally millions of ad slots (websites, apps and even OTTs) to show your ads instantaneously.


Power of data

Data is one of the most powerful entities in today’s digital world and programmatic uses this to ensure efficient results of ad campaigns. If I am selling running shoes, of the billions of internet users, I can show my ads only to those who are actively looking for running shoes. So the next time you are wondering why those shoes are following you on every site you visit, the answer is more than “re-targeting”. The evolving ad technologies powered by tools like programmatic make this possible. With programmatic advertising, companies can show ads to only those who matter. This makes it cost effective as you spend on advertising to only people who might actually be interested.


Is Programmatic and Display advertising same?

While display advertising has been there for a while, programmatic is a relatively new method of paid media. All those banner ads you see online are display ads which are served through ad networks. Google Display Network (GDN) is one such example. On the other hand, programmatic as mentioned earlier, is the automated way of