Programmatic buying is the automation of the buying and selling of digital advertisement placements through real time bidding. This automated decisioning is supported by real time bidding technology and multiple data sources. Programmatic ad buying uses software to purchase digital advertising as opposed to buying from individuals. Programmatic advertising is more efficient. Formally, digital ads were bought and sold by human ad buyers and salespeople which can be expensive and unreliable. Programmatic ad buying technology removes humans from the process wherever possible making it more efficient and cheaper. Technology is replacing more menial tasks that humans have historically done like sending insertion orders to publishers and dealing with ad tags. Humans are still required to optimize campaigns and plan strategies. Programmatic technology will probably decrease ad buyers and sellers but allows marketers and sellers to spend more time planning sophisticated, customized campaigns. Here’s how it’s done.


Ad exchanges are a sales channels and technology platform that facilitates automated, auction-based pricing and buying targeting individuals in real time.


Ad networks are third party companies that connect advertisers to web site publishers that want to monetize their ad inventory. Ad networks aggregate ad inventory from participating publishers into content buckets such as sports, travel or finance and match it with advertisers who want to buy high inventory volume at a lower price without having to arrange site-direct buys.


Private exchanges are made from a smaller group of related sites often from a main publishing company. Publishers provide this solution to monetize their inventory in a real-time environment without having to contract with larger, third party exchanges, anticipating higher rates than they would get in larger exchanges. Advertisers benefit from having a better understanding of what sites their ads will run on though find challenges scaling to a larger internet audience.


Real-time bidding (RTB) is the purchasing of ads through real-time auctions using programmatic software by bidding on or buying ad inventory. Advertisers bid on an impression, and if the bid is won, the buyer’s ad is instantly displayed on the publisher’s site, without the user being aware of the auction.


Programmatic direct uses software for advertisers to buy guaranteed ad impressions in advance from specific publisher sites.


Supply side platforms (SSPs) are technology platforms that help publishers manage their advertising impression inventory and maximize potential revenue. SSPs make it easy for publishers to monetize their available inventory in real time and also learn what inventory is selling best.


Demand side platforms (DSPs) are technology platforms that provide centralized and aggregated inventory buying opportunities from multiple sources, including ad exchanges, ad networks and sell-side platforms. DSPs leverage real time bidding capabilities of these sources to access and win inventory auctions.


Data Management Platforms (DMPs) are platforms that allows the collection of audience intelligence by advertisers and ad agencies from multiple online and offline data sources, thereby allowing for better ad targeting in campaigns.


Programmatic is the future of ad buying. The amount of advertising bought using programmatic is increasing. Some agencies are buying as much media as possible through programmatic channels. Some major brands have built in-house teams to handle their programmatic ad buying as they spend more of their marketing budgets that way. Today, mainly online ads are traded programmatically though increasingly media companies and agencies are exploring ways to buy and sell traditional media this way, including TV, radio, print and outdoor ads. Here’s to your future success in programmatic advertising. Let me know if I can help.






Please enter the word you see in the image below:

Remember my personal information

Notify me of follow-up comments?