What Should You Know About Programmatic Advertising


The world of advertising has seen a monumental shift with the advent of new technologies. There are more resources at an advertiser’s fingertips to exploit and new avenues through which their message can reach the audience more effectively. And this transformation is only accelerating by the day, further adding to the advantages already present.

One of the biggest game-changers of this revolution is automation. It removes the tedious aspects of any task and streamlines it, thus making it more efficient. Marketers should learn what is programmatic advertising, as this automated method of advertising management is changing the industry forever.

Spreading the Message Automatically

The digital advertising market is now the primary means of advertising, and competition for it has only increased. Knowing about programmatic advertising will help marketers stay along with the competition, if not exceed it.

What Is Programmatic Advertising?

The traditional advertising method involves people from a company meeting with advertisers and discussing the minutiae of putting up the former’s ads on the latter’s spaces. This takes a lot of time, money, and human resources while taking away all of the same from other, more productive tasks.

Programmatic advertising is using software to do all those tedious tasks instead. The software will buy the digital ad space across platforms and publish the content that has been fed to it. It is named so because of the programs handling the advertising.

Why Go For It?

Programmatic advertising offers efficiency and success. As mentioned, manually doing these tasks gobbles up tons of resources that can be used elsewhere. Marketers, for example, need not bother about the minutiae of advertising space purchase anymore. They can instead focus on optimising and developing more effective campaigns, thus improving ROI.

This has shown to be successful, so much so that in 2019 in the US, a total of $45.94 Billion was spent solely on programmatic digital display ads. Much of it occurs via private marketplaces or direct setups, which offer great convenience.

How Does It Work?

There’s both the Supplier Side Program (SSP) and Demand Side Program (DSP). These two interact via an Ad Exchange platform to buy and sell the ad. There’s a bidding process where the software automatically chooses the advertiser with the highest bid.

A web page is submitted to the SSP by the publisher, which holds the latter’s inventory. It collects anonymous visitor data and their actions via pixel code embedded in the ad space. The SSP is designed to maximise value for publishers, set rates for ads, filter ads by various criteria, and get the most out of impressions.

The DSP works similarly, but for the advertiser’s side. It allows advertisers to make bids on it and combines that with the user and third party data to decide where best to put a particular type of ad. Once the ad has been matched to the highest bidder, the same is communicated to the SSP.

A separate Data Management System exists to collect, analyse, manage, and activate all the necessary data to bid successfully.

The benefits of effective and efficient ad space management via automation are the answer to the question of what is programmatic management, and why go for it.

Saurabh Singla
Saurabh Singla is a former Mechanical Engineer turned digital marketer. He has been in the digital marketing industry for over 6 years and has worked with clients across different sectors including FanFare, BitMachina, Bayslope amongst others. Saurabh is also an Author and has written over 30 websites for his clients including INC42, Yourstory etc. After founding CaphIQ in 2020, he is helping businesses and Personalities for their Personal Branding and online visibility.

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