What Is Programmatic Advertising? How Programmatic Ad Buying Works?

  • September 24, 2021
  • Nirlep Patel
  • 4 min read

Ever wonder why businesses chase a specific technology and incorporate their budget in technology advertising? Interestingly, technology surpasses traditional, and such programmatic marketing proves itself in daily life. 

If you haven’t heard of programmatic ad buying, there is still time to grab the information. More than any other sustaining advertising marketing, programmatic ad buying has set a distinct path for the advertisements sold over the internet on your mobile device. These are usually developed and strategized by the digital marketing agency and the experts.

Keeping up with the latest trends and incorporation of such technologies is the effective utilisation of your business. With the concept highlighted here being the latest programmatic advertising and ad buying, let’s take a more inside look. 

What is Programmatic Advertising?

Programmatic advertising is the concept when an artificial intelligence (AI) technology is used to automate the published advertisements with more targeted audiences for potential conversions. Programmatic advertising, aka programmatic display advertising, comprises the automatic process of planning, buying, and selling ad inventory. 

Programmatic Advertising works based on user analytics and system algorithms:

  • Behavioural 
  • Location
  • Time-Based
  • Engagement Level
  • Social Engagement

Such algorithms in hand and the data obtained allow the system to plan and place the right content for specific segmented users. With this, the ads pop up over a particular page the user is interacting with and focuses on the ultimate goal of attracting the user to click on the advertisement. 

Why Choose Programmatic Advertising?

With Programmatic Advertising, a business can expect continuous growth. With 85% of the digital marketing branding was transacted to the programmatic technology in the previous year. It is a growth path, and it can grow up to 86.5% on the chart for the transaction of the year 2021.

Programmatic advertising is a faster and wiser alternative to manual advertising. With the process being automated and the strategist getting the space to build more tactics and implement. It certainly benefits the management and the business system with more relevancy. It is stated as a better alternative and a time-saving process for the digital age.

How Programmatic Ad Buying Works?

It is a concept that uses software for digital advertising. Programmatic ad buying works with the idea of real-time bidding. With real-time bidding, the advertising is fast and forwarded, targeting the specific customer base. 

The automatic makes it easy and quick, and the visitors who are your audience are exposed to the advertisement. The programmatic ad buying works in the following steps:

  • Step 1
  • A visitor clicks on the webpage.
  • Step 2

The publisher puts an ad impression on the page.

  • Step 3

The ad marketplace looks over the impressions and the users competing over ads.

  • Step 4

The advertiser who bids the most on the impression wins the display of the ad.

  • Step 5

Then the ad is delivered to the visitor/ potential customer.

  • Step 6

The visitor clicks on the ad, and the advertiser converts it into sales profits.

The traditional media involves a lot of work and several negotiations requiring manual interference and order, making the process slow and inefficient. A programmatic ad buying can fetch your business much more digital marketing branding than any other advertisement.

Benefits to Incorporate Programmatic Advertising in Your Advertising Plans?

Programmatic ad buying holds a lot of power in the advertisement technology and proves the potential to run the future of advertising. There are several benefits, while below are the major highlights for the industry of businesses.

Overall Efficiency

The programmatic ad can be said as the most optimal way of running the advertising campaign. It propagates the correct message delivery in the proper format to the right audience at the right time. With the technology, you can keep at hold and gain efficiency with the same.

Next Generation Advertisement

Looking out for the algorithms that can get you the most optimal reports and analyse the insights to deliver the desired content to the right audience? Programmatic ad is the key to the winning milestones for an advertiser.

Automated Process

Once the tags are entered and the system runs, an advertiser has to sit back and concentrate on the strategies and tactic building for different campaigns. The time can be invested in launching new designs and conceptual campaigns.

Micro-targeting User Segmentation

The planning and micro-targeting user segmentation gains with more information and big data. The data has a good amount of information targeted by the algorithms and gets handy with the parameters when visitors visit your page. 

Wider Audience Pool

Programmatic ad access over different digital screens. The focus is not just on the regular websites and media channels but also the gaming applications. This allows a broader audience capture and a huge pool of visitors to target from.

Increased Personalisation

Programmatic ad technology has automated analysis that prioritises and optimises the ads in real-time. With the power of Artificial Intelligence (AI), it stores the necessary data and delivers precise insights right to the potential users. 

Ease of Access to Ad Inventory

Advertisers have easy access to the inventories across platforms and a smoother run of the system. With the algorithm and bidding incorporation, programmatic advertising is most desirable and enables easy ad inventory management. 


Considering the above technological and business prompt view on programmatic ad buying and how it works, there is a potential value to it. With programmatic ad advertising growing in popularity and the time-saving space for digital marketers, it has become the most convenient.

At GBIM, the best digital marketing agency in Mumbai, we have programmatic ad buying services with the experts at work. We serve businesses that are goal-oriented and cater to their demands with the vision to succeed.

With us, you get your specific manager, assist you throughout the process, and provide you with every minute detailing your queries. We take pride in catering to you as your partner and believe in your vision by running our fuel with the best services in the market. 

We have affordable price rates for our services and a vast team of professionals at your service. With us, you gain the best agency for digital marketing and a partner for future success and growth.

Nirlep Patel
I am an internet entrepreneur and also the Co-Founder of GBIM Technologies, India’s fastest growing internet marketing company. My forte lies in actively lending technical expertise in Search Engine Optimisation, SEM Google AdWords, SMM. Spanning about 14 years of focus on Digital Marketing, GBIM today has become one of the greatest digital marketing company. This could have been possible only because of the trust which our clients have on us, and the quality services we have delivered to them I have always believed that more is lost from indecision than wrong decisions and as a result, we have managed to create an environment where people are encouraged to challenge process and innovate. This culture has cultivated a highly motivated team with an open approach where anyone can share their thoughts and ideas freely.
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