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Programmatic Advertising: The future of Ad buying and targeting

Advertising is an old technique of promoting brands to their specific targeted audience. With time, ways of advertising have evolved with customer behavior and preferences. Have you thought of what is the future of advertising and Ad buying? 

In this digital world, AI has automated the process of advertising with programmatic Advertising. It is an effective way for both buyers and sellers of Ads and is quickly becoming popular. AI has revolutionized the digital world in different industries and sectors; including advertising. 

This article is all about what programmatic advertising is, how it works, and where the future of Ad buying and targeting lies. Let’s dive into the world of AI-powered tools making work more effective and efficient.

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What is programmatic advertising and how does it work?

Programmatic Advertising refers to an automated system where purchasing and placing ads on websites takes a few seconds. It is done through AI algorithms that enable targeted advertising quickly that can bring out the best results for business organizations. 

Talking about how it works, this form of advertising uses Real-time Bidding (RTB) technique. It is an auction that takes place between the app publisher and the site advertiser. The advertiser is the demanding side and sets criteria for buying ads. As soon as the App publisher notifies that there is space for ad inventory, RTB takes place. It is often considered that programmatic advertising works as an advertiser’s investment and publisher’s profit. 

This technique is automated with measured effectiveness. It provides the customers with appropriate ads that they might be looking for. This process is known for targeting audiences relatively, persuading them to make purchases that they are looking for. 

Is programmatic advertising effective?

AI has been there to make tasks simpler and easier. Programmatic advertising is much more effective than the traditional advertising methods. As AI is capable of accumulating vast amounts of data about consumers; this advertising strategy is more based on market segmentation. Customers are addressed appropriately according to their needs and wants which makes a higher chance of targeting an audience via advertisements. 

The application of AI tools in programmatic advertising accompanied by machine learning is beneficial for both; marketers and publishers.

Some of the advantages are: 

1. Bigger Reach
The purpose of advertising is to increase the reach for a particular brand; its products and services. Using Programmatic advertising, marketers can reach a larger audience without spending large amounts of money or unnecessary efforts. Machines have customized the task within a free minute and the Ads are good to go.
2. More transparency 
AI has digitized work in the tech world. It can collect real-time consumer data that analyze the customer from a 360-degree angle. You have a clear view of who your customer is and what their preferences are. This allows more transparency which is a positive factor for advertising.
3. Targeting customers 
Programmatic advertising allows more advanced targeting of customers. Customers are segmented based on likes and dislikes automatically. This targets the ‘right’ audience for a brand.
4. Relevancy 
Advertisers can be sure the content and place of advertisement is relevant to their targeted audience. This is due to the insights and live data reporting that is possible due to AI.
5. Reduce Advertising costs 
Advertising cost is an expense every business organization anticipates; however using programmatic Advertising, the cost is minimized.

Programmatic Advertising channels

This section includes some Programmatic Advertising channels that are commonly used:

Display Ads

The term display Ad is described by its name. It is a visual representation of online ads that can be seen on the header, footer, or sidebar display options. This kind of advertising is created by partnering with Google, Microsoft, or Snapchat which helps in buying and selling these ads. These programmatic Ads generate revenue based on clicks and impressions.

Video Ads

Programmatic Ads continue to grow as the trend of Video advertisements is growing. It is the commonly used way to market products and services with a large number of views.

There are 3 different types of videos Ads:

1. In-stream Ads: This kind of advertisement appears in the video. These are the Ads you commonly view every day before a YouTube video, in the middle, or at the end. These are effective ways of capturing a large audience.

2. Out Stream Ads: Out stream Ads are the ones that appear while reading an online article. They are added to the article or pop up in between readings.

3. Display Ads: These kinds of Ads are not seen in the video, but appear in video recommendations.

Social Ads

Social media is the most used platform for advertisements. The social platforms collect enough information about the customer and their real-time data. This form of advertisement is about which Ads are to be seen by which customers. It depends upon their behavior and search actions. 

A perfect way to target an audience! This form of advertisement is what you receive every day when you are looking for a specific product/ service; all related Advertisements pop up on your screen or are visible to you. 


Wrapping it up, Programmatic Advertising holds a huge amount of digital Ads and this is going nowhere. It is rated as one of the top strategies for Ads due to its effectiveness in targeting audiences and collecting real-time data about customers. 

It is here to stay for long by making the most use of machine learning. AI and machine learning has made the world a digital place, automating tasks. Whereas, there are more new ways of Advertising available. Business organizations must accept global changes and new technical advancements with time. But, programmatic Advertising holds the future bright and has the potential to direct companies to spend on this source of advertisement. 

If you are looking for a good reach, and engaging your audience with relevant content; Programmatic Advertising is here to help you with your goals. Target your audience in the right manner with the best way of advertising



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