What is Programmatic Advertising and Should You Use It?

Traditional digital advertising wasn’t always effective. In the past, digital advertising was a process whereby companies and businesses bought ad space from websites owned by dozens to dozens of publishers. This was in hopes that their advertisement would reach the right audience. Technology has made advertising so precise that it can pinpoint exactly which audiences to target. This is dependent on the browser algorithms generated by demographic, psychographic and timing-sensitive factors. Programmmatic advertising can automatically buy audience insights and send the right message to the right person in the correct context. Let’s read more about ctv advertising.

What does programmatic advertising look like?

Comparing programmatic advertising to digital auction websites like eBay is enough to explain it. Programmatic Advertising works in a similar way to the items bought, sold and bid on on eBay.

It all comes together because of the technology behind it

Programmatic advertising makes use of specific knowledge about the target market that is obtained via a Supply Side Platform. Publishers can use an SSP online advertising platform to monetise their programmatic inventory. SSPs use logic to ask questions such as: “Has this person searched for X specific product or service before?” Has anyone else searched for X product/service before? What is the age and location of those who searched for X service or product?

The SSP programmatic inventories are then sent to Demand Side Platforms (DSP), an alternative ad exchange. The DSP narrows down the target audience further, matches the ad with the criteria collected by the SSP, and then sends the ad accordingly to those criteria. Remember that this data exchange takes just milliseconds. To blink your eyes, it takes 300 milliseconds. Programmatic advertising takes 10.