An Introduction for Businesses Into Programmatic Digital Advertising

Running digital ads on the internet might not be a complicated process for most digital marketers! But what if there is AI-optimisation and machine learning involved? Yes, as more businesses are looking for innovative ways to reach their target market, the digital world too offers innumerable opportunities to evolve and adapt to new marketing strategies. These new methods are effective and constantly improving, hence making it much easier for businesses to spend their marketing budget wisely in order to engage with new customers.

One such impactful progression in digital advertising is programmatic marketing. Programmatic marketing or advertising does not depend entirely on a human being like most traditional advertising methods but leverages technology to buy and sell online advertising space. It enables businesses to target specific customers on a particular page they are visiting by utilizing real-time data.

For businesses that are new to programmatic digital advertising, the use of jargon such as DSP and SSP, along with DMP (data management platform) and API (application program interface), can make programmatic seem overly complicated. You might feel that it’s better to stick to the usual traditional marketing strategies, but don’t worry, in this blog, we will explain everything, making it much easier for you to understand the concept of programmatic marketing.

So, how can this advanced, automated digital advertising strategy create a potential impact for your business?

Let’s find out from the basics.

What Is Programmatic Digital Advertising?

Programmatic marketing uses an automated approach to perform real-time bidding in order to purchase ad inventory for your business. It allows businesses to advertise precisely to targeted users in specific contexts, which results in more clicks and an effective return on investment.

If the person visiting the website on which you are running the programmatic ad falls into your business’s target market, your business will also be entered automatically into the auction. Many digital marketing agencies and businesses will compete for this ad position, but only the company that bids the highest amount of money will be able to show their ad on the website page.

What makes this process different from the traditional bidding strategy is that the complete process is automated. Businesses can set their maximum bid ahead of time and based on this amount a comparison will be done among competitors. When an advertising spot opens up, the bids are compared and calculated, thereby presenting the business that qualifies for the spot with an opportunity to promote their ad. Businesses or digital marketing agencies can use a demand side platform (DSP) to decide which impressions to buy and how much to pay for them, while website owners or publishers use a supply side platform (SSP) to sell advertising spots to businesses. Then with the help of Artificial Intelligence and Machine Learning the business ads and publisher sites are automatically analyzed in real-time.

Businesses Benefits of Using Programmatic Digital Advertising

There are several benefits your business can obtain by incorporating the programmatic marketing strategy, listed below.

1. You can set the frequency

When digital marketers or a marketing agency sets up a bid for your business, they can determine the number of times your ad must be shown along with when it must be shown. Marketing agencies will have relevant data about your audience, such as, the time they visit online businesses to purchase similar services or products, their demographics, and much more. Therefore, by tailoring your campaign based on these data, the bid will be automatically generated for advertising spots that fit your inputs.

2. Relevant impressions

Unlike other advertising techniques, you will not have to pay for every ad click in programmatic advertising. Since programmatic ads are shown only to relevant visitors the impressions that you get or pay for also will be relevant. Therefore, with this ad strategy, you are investing money for reaching out to potential customers that are most likely to convert. Also, the digital marketers will be able to set the minimum number of impressions required, hence your business can make sure that advertising goals are achieved.

3. Set the price

Similar to pay-per-click (PPC) advertising, marketers will be able to set the maximum amount of money that you are willing to bid for an advertisement. It prevents your business from losing excessive amounts of money on advertisement and will help businesses to initially calculate the exact amount they are willing to spend on ads.

4. Advanced targeting

Similar to PPC and other advertising methods, programmatic marketing also enables you to target specific audiences. Your business can obtain results from the previous ad campaign and based on this you will be able to understand which product or service gets the most number of clicks. Based on this data you’ll be able to create more unique content to provide a better user experience and click-through rate (CTR).

5. Ads can run on any platform

Based on the Google analytics data, digital marketers will be able to provide you with the devices from which your website gets the most number of views. This will help you understand your customer base and the type of devices they use, such as mobile, desktop, OS, or even the apps they mostly engage with.

Programmatic marketing helps your business to tailor your ads to the medium or devices that your customers mostly use.

6. Set goals

With programmatic advertising, your business is not simply running advertisements hoping that people will convert. Rather, you can set a specific goal that you want your business to achieve.

Your advertising goal may not always be about generating sales, it could be to improve branding, promote a particular product, or anything else for that matter.


If you are utilizing the benefits of marketing to improve your business branding and revenue, then you should also give programmatic advertising a shot. There are several digital marketing agencies doing website development in Toronto that are highly qualified in advertising techniques and also capable of efficiently monitoring programmatic campaigns to ensure that the audience is reached effectively. Make sure that your business makes the most out of advertising and stays one step ahead of competitors and one step closer to clients with the latest advancements in marketing.

Author Bio:

Cindy Williams is a blogger in Canada. She is working as an outreach coordinator for Web Sharx, a company offering website design in Toronto. She graduated with honors from the University of British Columbia with a dual degree in Business Administration and Creative Writing.

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