Programmatic advertising has changed the face of online media buying over the years. In the future, you could even expect programmatic trade to become a way of buying for traditional media for TV and outdoor advertising too .
The IAB estimates that by 2018, programmatic advertising will have grown from 28% in 2013 to over 80% of marketing spend.
Programmatic is a data-driven automation of online media buying. Indeed, it implies the use of the software to buy digital advertising. The old school way of media planning with RFP, negotiations and manual insertions of booking orders is almost over.
The technology is such that the machine is removing bureaucratic, systematic tasks such as booking orders and sending advertising tags to publishers, but it allows the buyers to focus on the strategy and the optimization of the campaign.
As it is data driven, you can expect several filters to ensure your add is shown to the right people, in the right place, which will lead to an effective campaign. With programmatic advertising, you can filter by demographic and geographic, but you can also select the publisher, the time of frequency and the time you would like your ad to appear.
However, programmatic advertising should not be mistaken with real time buying. Real time buying is a form of real time auctions while programmatic allows a client/agency to buy guaranteed ad impressions in advance from a specific publisher at a defined price. Thus, you are less impacted buy the demand/offer rule but it remains a bulk buy so it is cheaper than buying individually from premium publishers.