How Programmatic Ads Work

What is Programmatic Advertising?

Programmatic Advertisements are one of the most misunderstood forms of advertisement. Not many people know about this, but Programmatic Advertisements are one of the most profitable forms of advertisements and marketing online. In this blog, we’ve tried the most precise programmatic advertising explained process for you so you don’t have to go anywhere else. Now, what is programmatic Advertising, let’s start with that.

What is Programmatic Advertising

The Programmatic Ads can be understood as the process of combining machine learning and Artificial Intelligence to get the most profitable Ad results for you.

In the Programmatic Ad system, you can run all sorts of Advertisements like search, display, video audio and all other forms of Ads through one panel. You can also access to all the statistics and data of your Ads through that single dashboard only. This is where programmatic Ad buying becomes a very useful asset.

As per the EMarketer’s 2017 estimates, the United States spend €33 billion on programmatic Advertisements. This is a huge number in advertising that it accounted for 84% of all digital display Ad spend for that year.

Programmatic Advertising MakingOn the Programmatic Advertising platforms, you rely on machine learning and the platform’s algorithms as it defines what’s best for your Ad, where your Ad should be shown, who should be your target audience etc. based on different metrics, programmatic Ad buying is done and you’re delivered the best results.

Programmatic Advertising Platforms

Currently in the online market, there are three main Programmatic Advertising platforms:

  1. DoubleClick by Google

    The DoubleClick by Google is a very strong platform on the internet that allows you to purchase Ad space online for any medium like search, display, video etc. But, in April 2017, the platform also introduced the marketers to a new method with which they can easily run their Advertisements on Television.
  2. RocketFuel

    Rocketfuel is a tool made by the alumni of Yahoo! The tool is a very strong Programmatic Advertising platform after DoubleClick by Google. The tool uses AI to predict what actions to take while spending the amount. In case the platform thinks that your amount could be better used for a different audience type based on the cookie and user history, the platform would then change your budget to that place.

  3. AppNexus

    While running advertisements, getting a low-cost result is something that every advertiser aims for. This is where AppNexus help us at. AppNexus helps in showing your Advertisements to thousands of websites where the quality audience is present. The AppNexus also provides customizable Demand Side Platforms for Online Advertisements.

So, currently these are the three main and top Programmatic Advertising platforms that you must look out for. Other than these three, there are a few more which you can consider.

  1. Facebook Ads Manager
  2. MediaMath
  3. Amazon (AAP)
  4. LiveRamp
  5. Choozle
  6. TubeMogul
  7. BrightRoll

If you’re serious about Programmatic Advertisements, then make sure you check all these platforms before actually going with any and start spending your money. 

How Programmatic Advertisements work

Programmatic Advertisements work on only one factor. What it usually does is that it actively takes part in the bidding and auction and then sees where you can get the most profit from under the least amount spend.

For example, usually under the programmatic advertising method, the machine learning and Artificial Intelligence is customized timely to deliver you the maximum quality results in the least amount spent.

How Programmatic Ads WorkJust like in Facebook, if you let the platform decide the best targeting for you, the platform would then distribute and allocate your budget to different targeting interests and demographics. Example: Age, Sex, interests, purchase behavior etc.

Real-Time Bidding

In the Programmatic Advertisements, Real Time Bidding is done. This means that by the time you visit a website, an Ad purchase has already happened between the website and the seller.

Also see how to run Google Merchant Ads.

Suppose you have visited a smartphone website but you didn’t make a purchase. You just visit the website and close the webpage. Now when you are browsing on different websites, you start seeing that smartphone’s Ads everywhere. This means that the advertiser has selected all those platforms as its placements to show you those Ads. The Advertiser has also made it clear that his Ads must only be shown to those people who have visited his website but left without making a purchase. Therefore, with the tracking data, we can better re-target people again.

Ad Exchange 

Ad Exchange means that platform on which you can buy Ad spaces to show or run your Ads. This is what Programmatic Ads are most helpful for. During a web page visit, even before your web page has opened, a transaction takes place between the web page and the advertiser which will be showing you the most relevant Ad.

Factors affecting programmatic Ads

There are various ways in which you can run Programmatic Ads. If you have understood what is programmatic Advertising completely, then these factors are something you must know.

Keyword Targeting

So usually on some programmatic advertising platforms like Google, you can target people based on the keywords that they put in their browser. For example, you can choose to show your Ads on different keywords that are relevant to your business or services.

Contextual Targeting

Here, you can choose to show your Ad on different platforms like websites based on the interest that they cater to. For example, an automobile website serves only the purpose of motorsports and automobile segment. This means that if your business is about the same – auto parts and vehicles – then your Ad might be shown on such platforms.

Data and Audience Targeting

Facebook lets you target people more precisely with its detailed targeting option. You can insert various interest, behaviors and demographics to target different types of audiences. Also, based on the cookies, the targeting is more precisely done on Facebook and other Programmatic Advertising platforms.

Also, we hope that you’re understanding programmatic Advertising explained completely.

Location targeting

If you think that your business only serves in a particular locality, then you can choose to go with the programmatic Ad buying based on geodata. This method is also used by Snapchat for initiating more app installs or in-store purchases.

How are Programmatic Ads charged

Programmatic Ad buying is a pretty cost-effective method. What usually happens is that in most of the Programmatic Ads, they are charged on a CPM basis – cost per 1000 impressions. One more thing is that CPMs can also vary based on Ad quality. For example, the quality of the landing page, keywords used, targeting preferred, and more.


There are people who are unsure about the targeting and the best bidding practices for the utmost profit. And if they’re not able to get an agency to undertake all these efforts, then their campaigns can surely lead to huge losses. So, in order to keep the graph on a high, they can make use of Programmatic Ad Buying. And the first step to this is to learn what is Programmatic Advertising.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *