The future of Advertising: Programmatic Advertising

The future of Advertising: Programmatic Advertising

It’s always a challenge to place an advertisement where it can be heard, seen, or watched by the right audience. This challenge can be easily solved with Programmatic advertising, which essentially finds an effective way of advertising relevant ads based on the proper context. Conventional advertising is not effective when it comes to tackling the current competition of brands. But what exactly is programmatic advertising, how can brands leverage programmatic advertising, and its advantages? These are the questions that we will uncover in this article. Sounds good? Great, let’s dive in.

What is programmatic advertising?

Programmatic advertising uses Machine learning and Artificial intelligence to buy advertising in real-time, instead of going through human negotiations. It uses datasets that decide the target audience, and ads are chosen based on consumption; these ads are retargeted from time to time to increase ROI.

Let us look at some of the channels for programmatic advertisements.

  • Display ads:

    The term ‘display ads’ is generally used to refer to any online visual ads, but in programmatic ads, the ads shown only in the footer, header, or sidebar are considered display ads.

  • Video Ads:

    The recognition of programmatic ads is continuously growing, as videos continue to become the most preferred channel of content consumption. Digital video ad expenditure in the US solely is expected to go up to $22.18 billion in 2021.

  • Social ads:

    Social media is a great platform to collect massive data from users to boost their targeting capabilities. Programmatic advertisements utilize this data to analyze their ads’ target population. It also helps them understand the type, format, suitable time, and frequency of the ads, which allows the advertisers to optimize their ad expenditure.

  • Audio Ads:

    Unlike popular podcasts that follow the traditional sponsorship model to place ads, programmatic audio can boost up the efforts for revenue generation. Programmatic audio platforms target current audience data to display ads and use engaging video ads and display to improve the user experience.

  • Native ads:

    Native ads stick to the feel and form of the medium they are being set out. In programmatic native advertising, publishers use an SSP to sell their ads. Advertisers collaborate with a DSP to pick the impressions to purchase and their cost. According to research by IPG and Sharethrough on native ads, users look at 53% at native ads more frequently than display ads.

  • Digital out-of-home:

    It is an analytically superior and digital evolution of the common out of home advertising. The traditional digital out of home sales consists of the advertisers manually selecting the audience, pricing, targeting, screen selection by collaborating with the network.

Advantages Of Programmatic Advertising:

Advantages of using Programmatic advertising

Apart from the efficiency brought in by decreasing the need for human involvement and AI-driven algorithms, the following are five merits of using programmatic advertising.

  • Visibility:

    Unlike traditional advertising that takes a lot of time to get outcomes of advertising campaigns and lack of means to understand the extent of their accuracy, programmatic advertising gives accurate information about the ad campaigns’ performance, which helps the advertisers to accumulate more data about the target audience. 

  • Transparency:

  • As the advertisers know about the ad inventory they are buying and the target audience, they can track their ads’ performance, understand their expenses or the budget, and modify their campaigns to get the targeted results. Also, the risk of errors is reduced due to lack of human dependence.

  • Cost-Efficient:

    Programmatic advertising issues advertisers a real time campaign performance which can help them invest their budget in the approaches that will give them good results. A right investment plan would help the advertisers spend their budget effectively and give them a better ROI.

  • Deal Effectively With Ad Frauds:

    Unethical ad practices attract the digital advertising industry. Publishers, for a long time, have been deceiving advertisers by carrying out various fraudulent plans. Programmatic advertising platforms offer transparency to the advertisers that enable them to evaluate their ads’ performance and pick the ones that deliver better results.Major programmatic ad platforms also deal with ad fraud by stopping pre-roll ads and fake bot traffic and providing ad credits if there is a forged tactic slip through their system.


There are numerous reasons for considering programmatic advertising, which makes it the future of advertising. This information on programmatic advertising has covered the required knowledge to explore its process and make its use.

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