If you’ve been hearing about programmatic advertising lately, you’re not imagining things. It’s having a moment. It's not a shiny new trend, but programmatic is evolving fast and making a bigger splash than ever. Marketers are paying attention because it’s shaping nearly 90 percent of digital display ad spend in 2025, driven by new privacy rules and AI-powered technology. 83 percent of senior brand marketers are already using AI to target digital ads.
Programmatic advertising is a tool that lets brands reach the right people in real time—and across screens and channels—all while adapting quickly to changes in how consumers behave and what they expect. But programmatic advertising isn’t just about riding waves. It’s about mastering the swell with AI precision and timing that hits every break just right.
Read on to find out what programmatic advertising is, how it works, and how to leverage it to boost the effectiveness and efficiency of your digital marketing efforts.
What is Programmatic Advertising?
Programmatic advertising is the use of advanced software and machine learning to buy digital ads across the internet—automatically, in real time, and with precision. It analyzes in-the-moment user data like browsing behavior, shopping habits, and content preferences to serve the right ad to the right person at the right time. And it happens in milliseconds.
How Programmatic Advertising Works
Let’s say a user visits a website. As the page loads, the ad space on that site is instantly auctioned off via something called real-time bidding.
Behind the scenes, demand-side platforms (DSPs)—that’s software used by advertisers to buy ad inventory—bid for that space on your behalf, factoring in your campaign strategy, budget, audience targeting, and ad creative. The highest bidder wins the impression, and the winner’s ad is served on the page.
Types of Programmatic Advertising
Programmatic advertising is expanding beyond traditional digital platforms to include connected TV, mobile apps, and more. This cross-channel integration helps create a seamless experience that meets consumers wherever they are.
- Display: The OG of programmatic advertising, aka the banners you see across websites
- Video: Includes Connected TV (CTV) ads that appear on internet-connected televisions, including smart TVs and streaming devices (i.e., Roku)
- Native: Natural, less disruptive ads that blend into content seamlessly
- Audio: Podcast or streaming service ads bought programmatically
- Social: Ads run on social media platforms like Instagram and Facebook
Why It Matters: The Benefits of Programmatic Advertising
1. Your Money Works Smarter
Campaigns are optimized based on performance data. That means your budget goes toward impressions and clicks from the right people, minimizing waste and boosting impact.
2. Quick to Adapt
Programmatic platforms respond immediately to real-time data, shifting delivery to match ever-changing consumer behavior and preferences.
3. Stronger Against Fraud
While nothing’s foolproof, programmatic platforms come with built-in fraud prevention tools and allow you to buy through trusted, verified exchanges.
4. Easy to Scale
Want to run ads across thousands of sites, apps, and platforms at once? Programmatic can help you run large campaigns across many spaces for layered, impactful exposure.
5. Powerful Targeting
Machine learning and AI constantly analyze user data for sharp, robust targeting that helps deliver ads that are tailored to countless attributes.
6. Cross-Channel Reach
Programmatic isn’t just digital display anymore. It now includes connected TV (CTV), mobile apps, and digital out-of-home ads, offering a seamless multichannel experience.
7. Privacy Focused
With consumer data privacy concerns front and center, programmatic is shifting toward privacy-centric strategies. That means relying more on first-party data and contextual targeting to comply with ever-evolving regulations.
How to Leverage Programmatic Advertising in Your Strategy
Programmatic advertising is a powerful resource—but like any tool, it works best in skilled hands and as part of a holistic marketing strategy. Here’s how to get started:
- Define your goals: Are you trying to raise brand awareness, drive conversions, or re-engage past visitors? Your goals will shape everything, from targeting and messaging to your bidding strategy.
- Know your audience: First-party data is gold. The more you know, the better your targeting.
- Set a realistic budget: Programmatic advertising can be efficient at scale, but you’ll need a healthy budget to see meaningful results.
- Partner with pros: A team that knows the platforms, optimizations, and challenges of programmatic advertising will make all the difference.
Final Thoughts: Is Programmatic Advertising Right for Your Brand?
If you’re spending seriously on digital media and want more precision, scale, and adaptability, programmatic deserves a spot in your mix. Ask yourself:
- Do you know your audience and goals clearly?
- Do you have rich audience data?
- Is your media budget big enough to include programmatic?
If you answered yes to any of those, let’s talk. We help brands use programmatic advertising strategically to catch the wave and ride it to long-term success.
