7th June 2022, By Amina Sayed, Digital Media Manager

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Once upon a time advertising was nothing but just a banner on the road or a painting on the wall but with constant evolutions and upgrades, a marketer can now choose where his ad will appear, who will see it and how people will see it. This evolution can be called Programmatic Advertising.

Programmatic advertising is a combination of AI and RTB (Real-Time Buying). AI Artificial Intelligence is the simulation of human intelligence processes by machines, especially computer systems. These AI’s are built in such a way that they track every activity of users, along with the location, devices, behaviour, habits and all minor details of the user forming a database.

Let us walk through the process of Programmatic but first, let us understand the terminology related to the process.

Publishers (inventory holders): Publisher who owns the website and is having ad space available for advertisement.

Advertisers (brand owners): Owners of the product and services who wish to promote or sell their services to customers.

Ad agency (creates campaigns): Ad agencies that create the campaign for advertiser’s products and services

Ad exchange (marketplace to sell ads): Ad Exchanges are digital marketplaces where publishers and advertisers come together to trade digital ad inventions.

How does Programmatic Marketing work?

When someone clicks on a web page with programmatic advertising space, the publisher of the page auctions off an ad impression in an ad marketplace. After that, the ad marketplace holds an auction among advertisers that want to show an ad to that specific client who has just clicked on the website. Many advertisers may compete in this auction, and whoever is ready to buy the most at the end wins the auction, and their ad is then displayed to the client when the website loads.

Programmatic advertising is an automated process, the auction is finished in milliseconds and the maximum price each advertiser is willing to offer for the impression has already been programmed in.

With evolutions like these, the digital advertising space is booming for advertisers as well as audiences. For the advertisers, programmatic advertising helps in building effective cross-device campaigns and getting greater data insights to understand customers. And it gives a more personalised and interest-based advertising experience to the audience.