At first glance, the concept of programmatic advertising sounds complicated and looks like this technology needs to be studied for many years. Everything is not so at all. After all, if you understand the basic principles of how it works, advertising campaigns become a quick and simple solution for marketers and professionals.
And it is worth remembering that there are programmatic advertising companies that help businesses master this complex niche and take on all stages of launching campaigns. So, don’t be afraid of complex terms; let’s explore what automated advertising is, its types, platforms, and advantages.
What Is Programmatic Advertising?
Programmatic advertising is the use of the latest computer technologies to search for and purchase digital space for advertising on the Internet. Compared to traditional advertising methods, this system utilizes analytical data and algorithms to analyze user behavior. Thanks to the implementation of this marketing method, your advertising will definitely be seen by an audience that is interested in the services you offer. As a result of the development of artificial intelligence, programmatic advertising is becoming increasingly popular. Marketers and brands who have mastered this tool will achieve the best results in their marketing campaigns.
I think you might not have considered where you can see programmatic advertising. I will probably surprise you, but it’s more common than you might think — banners on websites, videos during your favourite films, or ads in podcasts. You see, it sounds not very easy, but you encounter it almost every day.
The Main Types of Programmatic Advertising That You Need to Know About
To properly understand and choose a strategy, it is worth familiarizing yourself with the types of programmatic advertising. Among the main ones, the following three types can be distinguished:
- Real-Time Bidding (RTB)
This is the ability to buy or sell advertising based on ad impressions through an auction. This type of programmatic advertising is also called an open market, auction, or exchange. As soon as the user opens the page, advertising units become available through the SSP. The so-called auction takes place. The winner is the advertiser who offers the supreme price. After that, the site shows the advertisement to the viewer in the advertising space. This process is automated and takes place in real time.
- Private Marketplace (PMP)
In principle, it is similar to RTB, because it takes place according to the rules of the auction. However, only those advertisers who have received an invitation can participate. The advantage of a private marketplace is that advertisers and publishers know who is participating in the trade, and therefore everyone can expect the best results for themselves.
The essence of this type of programmatic advertising is that the publisher uploads a site with ad space, sends an invitation valid for a certain period of time, and all advertisers who have access have the opportunity to purchase space for their ads. The one who makes the highest bid wins.
- Programmatic Direct (Spot Agreements)
This is a type of programmatic advertising where the advertiser receives ad space directly from the publisher. An agreement is made between them that is beneficial to both sides. Spot transactions are concluded at a fixed price that is agreed upon between the parties. Compared to other types, this type of programmatic advertising does not guarantee that the advertiser will purchase a place for an advertising unit from the publisher, in which case the advertising space goes to auction. Spot agreements are also known as programmatic non-guaranteed agreements, priority agreements, and fixed-rate agreements.
You have already learned about the main types of automated advertising, and I think it is becoming even clearer. So, to further simplify the launch of such advertising, you can turn to programmatic advertising services. On the Attekmi blog, you can learn about the best of them in 2025.
What Programmatic Advertising Platforms Exist
Programmatic advertising platforms are tools that allow you to automate the purchase, sale, and management of advertising. So let’s get to know them:
- Seller Platform (SSP). The publisher can sell advertising space to the advertiser in real time. This service connects with demand platforms and advertising exchanges.
- Demand-Side Platform (DSP). Advertisers can buy ad inventory across multiple platforms together.
- Advertising exchanges. This is an intermediary platform that transfers advertising reserves to the exchange for automated sale at auction.
There are many programmatic advertising helper companies on the market today that provide access to SSPs, DSPs, and ad exchanges. On the Attekmi website, you can find the top 13 services that offer the best solution for automating the buying and selling of ads.
Advantages of Programmatic Advertising for Business Development
One of the main advantages of programmatic advertising is automation. This allows marketers and publishers to save their time by spending it on other tasks. But this is not the only advantage that this type of advertising can boast.
Greater Reach and Higher Demand
Programmatic advertising supports many different types of traffic. This allows marketers to expand their reach beyond devices and channels, promoting marketing campaigns more effectively and ensuring an increase in audience and brand recognition. Publishers, in turn, get wide access to advertisers, which increases demand for their advertising inventory.
Precise Targeting
Programmatic advertising allows for precise targeting capabilities. By using it, advertisers can be sure that their ads will reach an audience that engages with the ad. Publishers support higher content relevance and a better user experience in their application.
Cost-Effectiveness
In programmatic, advertisers have complete control over their spending. They bid the amount they can spend on advertising, which ensures cost-effectiveness. Demand platforms also have the function of maintaining competitiveness and protecting against excessive costs. Publishers, in turn, set a minimum price per impression, which allows them to avoid unprofitable bids.
Variety of Formats
Programmatic advertising is not just banners and media advertising. Many demand platforms allow marketers to use CTV, audio, etc. This gives access to a wide variety of advertising formats and helps engage and attract the audience.
Final Thoughts
After reading the information about programmatic advertising, you realised that in reality, everything is not so complicated, especially with the support of marketers or companies that provide programmatic advertising services. As you can see, automated advertising has several advantages that can help develop your business. I hope this article was useful for you, and programmatic advertising will be added to your piggy bank of technologies for business promotion.