Back in the day, to purchase a web banner and other digital spaces, one would go through RFPs, human negotiations and manual insertion orders. Programmatic advertising is the smart automation of the process, where software will be able to determine intended customer search and behaviour, to match buyer and seller.

Two main types of programmatic advertising

  1. Programmatic direct

    • using algorithms to recommend where is best for the advertiser to spend their attention and ad spend on for best ROI.
  2. Real Time Bidding Programmatic

    • where a consumer that expresses intent, is then presented to advertisers.
    • Catch the video below by Genius Monkey to get an idea.

So, instead of businesses communicating with Digital Advertising Buying agencies and their teams who match user profiles to those that match your customers and present it to you, the network through smart algorithms get to sniff your leads out for you, and present them directly in an automated fashion.

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If you look at the diagram above, you can see that through an exchange of knowledge of needs, there can be intelligence built through the process to do the matching and pairing up of Advertisers and Publishers.

Traditional means would have Digital Advertising teams propose certain websites and channels based on user profiles they develop and pitch, but Programmatic Advertising is essentially the automation of this process, in a much more efficient way where the advertising processing intelligence hardwares and softwares do the work.

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