What Is Programmatic Advertising? (And Why You Need It!)

Programmtic Advertising

Did you know that spending on programmatic advertising will reach nearly $38 billion by 2018? With numbers like that, it’s hard to ignore. But programmatic advertising is so new, that many marketers have no idea what it actually means. So what is programmatic advertising?

We’ve created the ultimate guide to learning about what is programmatic advertising and why you need to start using it.

What is programmatic advertising?

It really is a mouthful, isn’t it? The term itself sounds like complicated, but in reality it’s really not.

So what is programmatic advertising? In short, it is the science of using artificial intelligence (AI) software to decide where ads are placed, and who the ad’s audience is.

Programmatic methods take away much of the tough, human task of deciphering the who, what, and where in the digital advertising sphere. Machines are foolproof. Sometimes, the human element isn’t always as efficient.

Ultimately, you’ll be removing the middle man that is ad agencies and sellers.

Big Data

Big data is one of the trends hitting the marketing world this year. With programmatic advertising, big data is huge.

Imagine having all the information on your buyers at the tip of your fingers. You’re provided that with this type of advertising. The programmatic software can look at past trends and see how valuable a specific target is to the campaign. And as a marketer with not much time on your hands, you don’t have to do the dirty work. Programmatic technologies do all of that for you!

You can then take this information and analyze your campaign. Take a look at what’s working and what’s not, and adjust from there.

Time and Money Saved

One of the biggest advantages of programmatic buying is the time and money that you’ll be saving. Instead of going through the process of negotiating prices and contracts, you’re able to spend more time on the campaign.

The most time-consuming part of buying ads is working with several exchanges at once and creating requests for proposals. This time is cut in half. This is because with programmatic machinery, you’re given access to one space with tons of access.

The accuracy of the automation will also save you time and money. No more mistaking your target audience (something we’ll take a look at very soon.) You won’t be wasting time on campaigns that simply aren’t working.

Target Audience

If you’re looking for a super-specific audience, it’s a lot of work to find the one that will generate the best results. Especially if you’re relying solely on human minds to figure that out.

And while marketers are pretty good at finding that target audience, it takes time and resources to do so. That’s what makes programmatic advertising so great. The program can generate the perfect combination of characteristics in your target audience.

And it’s a foolproof system. Instead of taking the time to do research that may not be as accurate, the software will come up with the target audience based on statistics and analytics.

Here are some ways that programmatic technologies find the ideal market:

  • They target IP zones
  • They look at geographic areas
    • Country, state, and even individual zip codes.
  • Examine historical evidence of past purchases.

This type of advertising will also allow you to analyze who has visited the website. You’ll even have access to the information that comes from those individuals who didn’t purchase the product or service. So instead of the small percentage of those who took action, you’ll have more leads for those who just browsed the site.

Track Reach

Automation gives you the ability to see where your advertisements will go, and who will see them. And it also affects how quickly your audience will see the campaign.

Instead of launching your campaign in increments, you’ll now be able to send out information almost immediately. With automation, your reach extends beyond the passerby of a billboard. Your audience will not only be targeted. They’ll also get your full campaign across many devices all at once.

Thanks to the big data benefit we mentioned earlier, you’ll also be able to see when your target audience has seen your advertisements. You’ll also be able to get all the information on the audience. You’ll see from where they viewed it, their location, and who they are.

Real Time Information

When you launch a traditional campaign, you’re left wondering, “How is this campaign doing? Is there anything that isn’t working?” And then you have to wait until the campaign is over to make any adjustments for the future.

This is not the case with programmatic advertising. Anytime you’re questioning how your campaign is doing, simply take a look. The software allows you to check on your campaign at any time. You can see if there are any adjustments that need to be made, and you can make them immediately.

You’ll no longer waste time and money on a campaign that isn’t working well. Instead, you’ll be given a heads up for changes that need to be made to be successful.

This innovative technology will also tell you who has viewed the advertisement, and whether or not they’ve engaged with it. This is cutting edge information that would otherwise be lost on traditional advertising.


Because it’s still a new concept, many marketers are wondering, “What is programmatic advertising?” And they may not understand all of the benefits associated with it.

As the world moves towards the digital and away from the traditional, more marketers should look into programmatic advertising as a way of keeping up with the trends.

While you may be thinking that this would cut out the human marketer, this isn’t actually true. Working with machines and artificial intelligence software only enhances the human initiative. Marketers are better able to focus on what they know best. Then, they can leave the tedious parts of their job to the machines.

If you’re interested in learning more about implementing programmatic advertising into your business, leave a comment or contact me for more information.