Programmatic advertising is a new form of advertising. Innovative and data-driven, this technique of advertising breaks with tradition of what’s been previously done in advertising.

What Is Programmatic Advertising?

Simply speaking, programmatic advertising is a form of advertising which uses automatic technology to buy ad space on the Internet instead of doing it manually like in old-style digital ads. It uses data and algorithms to show ads to the intended audience at the perfect time and for the right cost, maximizing return on advertisement.

Why Is It Important?

Before programmatic ad buying, advertisers bought and sold digital ads on each platform separately. These ad buyers and salespeople were costly and results were not guaranteed. 

Programmatic advertising aims to make the ad buying system more efficient and less expensive by reducing human involvement. People can get sick, vacation, or quit. Machines don’t have these issues, so it cuts down on many of the contingencies that involve a degree of human interaction in advertising services.

What Are the Different Types of Programmatic Advertising?

Real-Time Bidding

Real-Time Bidding (RTB) involves open auctions where ad slots are available to everyone, sold to the highest bidder instantly. RTB uses a second-price auction system, where the top bidder pays slightly more than the second-highest bidder. 

Private Marketplace

Private Marketplace (PMP) works similarly to RTB but exclusively invites certain advertisers to a closed auction. PMPs offer publishers benefits and grant advertisers knowledge of where their ads will appear, ensuring better ROI measurement. 

Preferred Deals

Preferred Deals allow advertisers to select ad inventory at fixed prices before entering private marketplaces or open auctions. Advertisers receive a preview of ad inventory and aren’t obligated to buy, enabling them to assess how fit is the audience for their purposes.

Programmatic Guaranteed

Programmatic Guaranteed, a traditional approach, involves direct negotiation between advertisers and publishers without bidding. It grants advertisers control over inventory, pricing, targeting, and frequency capping, ideal for those with specific ad placement needs and substantial budgets.

Benefits of Programmatic Advertising

Real-Time Insights

Programmatic advertising offers you real-time insights, empowering you with immediate campaign performance data. This bestows you with a deeper understanding of the target audience and campaign effectiveness.


The transparency in programmatic advertising empowers you by providing insights into purchased ad inventory, audience targeting, and real-time campaign optimization, reducing human-induced errors.

Furthermore, programmatic platforms help you identify and avoid ad fraud. They mitigate fraud through bot traffic blocks, and provide ad credits for any fraudulent activity that bypasses their systems.

Better ROI

Real-time performance metrics enable you with optimal budget allocation, resulting in efficient spending and improved ROI.

How Can You Succeed With It?

Succeeding with it is a simple matter of knowing your niche, setting the right goals, and not forgetting about the appeal of the human touch in programmatic advertising either. RMG Advertising is an expert at finding this optimal blend between machinery and human interaction in programmatic advertising. Contact us for more information.