Programmatic advertising refers to the automated buying and selling of digital ad inventory through software. Instead of relying on manual negotiations and insertion orders, programmatic platforms allow advertisers to purchase ad space in real-time using data-driven targeting. This automation happens through Demand-Side Platforms (DSPs) and Supply-Side Platforms (SSPs), which work together to connect advertisers with publishers.
New to the concept? The Interactive Advertising Bureau (IAB) offers a foundational overview of how the programmatic ecosystem functions, including the various tools and vendors involved.
Understanding Real-Time Bidding (RTB)
A key component of programmatic is real-time bidding. RTB is a type of programmatic buying where ad impressions are bought and sold in real time via auctions. As a user loads a webpage, an auction takes place behind the scenes—lasting mere milliseconds—to determine which ad to display based on bids and targeting criteria.
For more on how RTB auctions work, Digiday’s explainer breaks it down using simple visuals and real-world examples.
Benefits of Programmatic for Beginners
One of the biggest advantages of programmatic advertising is scale. You can serve ads across thousands of websites and apps without having to negotiate with each publisher individually. Additionally, platforms like The Trade Desk and Google Display & Video 360 provide advanced targeting tools to control who sees your ads based on location, device, browsing behavior, and more.
This level of targeting lets advertisers make the most of their budgets while also improving performance metrics such as click-through rate (CTR) and return on ad spend (ROAS).
Managing Where Your Ads Appear
Brand safety is crucial, especially in programmatic environments where your ads may appear across a vast range of content. Platforms like Integral Ad Science (IAS) and DoubleVerify help ensure your ads appear in contextually appropriate environments. You can also set frequency caps, exclude certain publishers, and block categories that don’t align with your brand identity.
How to Get Started with Programmatic Ads
For those just starting out, it’s best to use a managed DSP or work with an agency partner. Platforms like StackAdapt and Basis Technologies provide user-friendly interfaces and education tools to guide you through launching your first campaign. Most DSPs also provide tutorials and customer support to help you understand terms like cost-per-mille (CPM), viewability, and attribution models.
If you prefer to learn hands-on, you can also explore free certifications from Google Skillshop and LinkedIn Learning, which cover the basics of digital advertising and programmatic media buying.
The Future of Programmatic Advertising
As third-party cookies phase out and privacy regulations become stricter, the future of programmatic lies in contextual targeting and first-party data. Companies are adapting quickly, leveraging tools like LiveRamp and Lotame to maintain user-level targeting with consented data.
Understanding these trends now will help you stay competitive as the adtech industry continues to evolve.
