What Are Programmatic Ads?
Programmatic ads are digital advertisements that are bought and placed using automated software instead of people. The process uses artificial intelligence, data, and real-time bidding to show ads to the right audience, at the right time, in the right place.
So, what are programmatic ads in practice? They’re the opposite of traditional ad buying. There are no manual calls, no drawn out contracts, just automated systems making split-second decisions based on who’s viewing a webpage or app.
This form of advertising has existed since the mid-2000s but has become the standard today. According to eMarketer, 89.1% of all digital display ads worldwide are now purchased through programmatic methods. In 2025, with the rise of AI and automation, programmatic ads are more important than ever.
How Do Programmatic Ads Work?
Understanding what programmatic ads are starts with the basics of how they operate.
At the core is the process of Real-Time Bidding (RTB). Here’s how it works:
- A user opens a website or app.
- The ad space on that page is sent to auction in real time.
- Advertisers place automated bids to show their ad to that user.
- The highest bid wins, and the ad appears, within milliseconds.
RTB ensures that ads are shown to the people most likely to engage with them, reducing wasted budget and increasing efficiency.
Within Real-Time Bidding, there are two main sides: the Demand-Side Platform (DSP), used by marketers and advertisers to find and bid on ad space, and the Supply-Side Platform (SSP), used by publishers to sell their available advertising space to the highest bidder.
Programmatic Ad Formats and Channels
When asking what are programmatic ads, it’s important to know that they span a wide variety of formats and channels.
- Display Ads – Banner ads on websites or mobile apps
- Video Ads – In-stream or out-stream ads shown before, during, or after video content
- Native Ads – Ads that blend in with content feeds or editorial layouts
- Audio Ads – Ads played on podcasts, music streaming apps, or smart speakers
- Connected TV (CTV) Ads – Shown on internet-connected TVs via platforms like Roku or Hulu
- Social Ads – Automated placements on platforms like Instagram, TikTok, and Facebook
- Digital Out-of-Home (DOOH) – Digital billboards and screens in real-world locations
Each format can be managed through one system, helping advertisers run multi-channel campaigns more efficiently. If your budget allows, it’s worth integrating several of these platforms into your digital marketing strategy.
What Are Programmatic Ad Buying Softwares?
To run these ads, advertisers use programmatic ad buying software known as Demand-Side Platforms (DSPs). These platforms automate bidding, targeting, and placement across a wide range of channels.
Some of the most common DSPs include:
Related Article: Developing your amazon ads keyword strategy
These platforms allow businesses to access different ad formats, set targeting parameters, track performance in real time, and connect with data tools, all from one place.
If you’re wondering what programmatic ad buying software best used for: they simplify ad buying, cut down on manual work, and give you more control over targeting and spend.
Understanding the Sell Side: SSPs
On the publisher side of programmatic advertising are Supply-Side Platforms (SSPs). While DSPs help advertisers buy ad space, SSPs help websites and apps sell it.
Platforms like Google Ad Manager, Magnite, and PubMatic allow publishers to auction off their ad space in real time to the highest bidder.
If you own a website, working with an SSP can help you earn revenue through programmatic ads by connecting your ad inventory with interested buyers automatically.
How to Get Started with Programmatic Ads
You don’t need a huge budget or marketing team to get started, you just need to know what are programmatic ads and how they work, then follow our simple step-by-step approach:
- Set your advertising goals – Are you driving traffic, leads, sales, or brand awareness?
- Know your audience – Define demographics, behaviours, and platforms they use.
- Choose a programmatic platform (DSP) – Pick one that aligns with your goals and budget.
- Create your ad assets – Images, videos, copy, or audio depending on the channel.
- Launch and monitor – Use real-time analytics to see what’s working.
- Optimise over time – Refine your targeting and creative based on performance data.
Benefits of Programmatic Advertising
Programmatic ads save time and stretch your ad budget further. Instead of guessing where to place ads, the system automatically finds your ideal audience, whether they’re scrolling a blog, watching a YouTube video, or streaming on TV.
You only pay to reach people who are likely to care, which means lower cost-per-click and better results for every dollar spent. Programmatic also gives you access to premium ad placements that used to be reserved for big brands, all without needing a huge team.
It’s a smarter, more efficient way to advertise, and it frees you up to focus on strategy, not spreadsheets.
Does the “Spray and Pray” Advertising Method Work?
Gone are the days wondering: does the “Spray and Pray” Method Works.
Programmatic advertising It’s a smarter, more efficient way to advertise and it frees you up to focus on strategy, not spreadsheets.
What Are Programmatic Ads FAQ?
How is programmatic different from running Google Ads directly?
Programmatic automates bidding and placements across many platforms, not just Google. It uses more data for better targeting.
Are programmatic ads more expensive?
Not always. You can start small, and smart targeting often leads to better returns.
Are they only for big brands?
No. Programmatic works for businesses of any size and scale.
What are programmatic display ads?
These are image-based ads that appear across websites and apps, placed automatically using programmatic systems.
Do I need a team to run programmatic ads?
No. Many platforms are beginner-friendly, or you can work with an agency to manage everything for you.
What about non-programmatic advertising?
While programmatic advertising is now the standard, non programmatic ads still exist. These are bought the traditional way, through human negotiations, media contracts, and insertion orders.
Conclusion: Why Programmatic Belongs in Your Digital Strategy
If you’ve ever asked what are programmatic ads,, now you know: they’re the smarter, faster, and more effective way to advertise online. By using real-time data and automation, programmatic gives you more control over where your ads go and who sees them.
When combined with SEO, content marketing, and social media, programmatic advertising becomes part of a complete digital strategy, one that builds brand awareness, drives engagement, and boosts conversions.
Need a hand getting started? HeyTony can help. From SEO tools to Google ad campaigns, we’ll help you reach the right audience and get results, faster, smarter, and with less guesswork. Whether you’re launching your first ad or scaling up, we’re ready to make it work for your goals.
Originally published . Last updated .
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