Why Programmatic Is The Future Of Media Buying & What It Means For Marketers?

Keeping up with the constantly changing digital landscape and modern automated digital media buying takes time and effort. While the situation is challenging, avoiding it and missing out on the benefits would do you no good. The only way to maintain an edge in the digital industry while maintaining relevance is to stay updated with the latest innovations that enhance efficiency and performance.

In the current market, everything has gone virtual, and digital programmatic buying is no exception. Digital programmatic buying of ad space is something all brands and  professional digital advertising services must invest in; it is the future of digital advertising. However, many are still unfamiliar with the concept or do not understand how it works.

Before discussing the potential and benefits of programmatic buying of ad space, it is essential to get a conceptual clarity of the same.

What Is Programmatic Advertising?

Programmatic advertising refers to the automated process of buying digital advertising space and impressions from demand-side platforms. This process relies on complex algorithms and interfaces to analyze, book, and optimize an ad campaign.

The process occurs between advertisers and publishers and allows for easier and faster transactions of digital ad space. Before programmatic marketing introduced automated digital ad buying, humans controlled and monitored the process manually.

As a result, the process was inefficient and slow, with meeting RFPs, and lengthy negotiations taking place before manually publishing an ad. However, this process, despite its several misgivings, worked fine till the number of publishers grew too fast for the advertisers to keep track.

The ad space supply exceeded significantly more than its demand, and wastage of digital ad space (40 to 60 percent for every publisher) became a common scenario. Automation entered the playing field through networks that organized ad inventory in a way accessible for media buyers to comprehend and understand.

Current programmatic digital ad buying allows marketers to:

  • Streamline the whole ad space buying process by eliminating the middleman from the flow
  • Access a more significant number of publishers
  • Serve target audiences with relevant ads
  • Improved return on investment

Now, brands, companies, and professional digital advertising services can buy digital ad space and avoid all the red tape associated earlier with the process.

How is Programmatic Advertising The Future Of The Digital Market?

Traditional digital ad buying has ruled the market for years despite being a lengthy and inefficient process. But, with no other option, marketers had also gotten used to it and kept it going despite the failings.

However, the digital ad space has completely changed with automated innovations being introduced in it. Given that this technological advancement is far better than the traditional ad-buying process, it is now crucial for digital marketers and the best programmatic advertising companies to adopt these new changes to stay ahead of the game.

In the traditional format, ad space was directly purchased from vendors, while the new method, although complex, is entirely automated. In this process, media ads are brought at auctions through real-time biddings where there is little to no involvement of any media buyer. Instead, the whole process takes place automatically.

Here are some more significant differences between traditional media ad buys and programmatic advertising that make it the future of the digital advertising landscape:

Human Interaction:

Human interaction was a big part of the traditional ad-buying process, where a publisher and an advertiser would connect to discuss the terms and conditions of payment. With programmatic advertising, human interaction is no longer needed, with the advertiser establishing the target options at the beginning of the process.

Automation Vs. Manual:

Traditional direct media purchase takes place manually, while programmatic advertising is entirely customized and automated, making the process less time-consuming.


Negotiations for pricing and advertising terms and conditions occur through in-person meetings and real-time bidding for media space.

Kind of Reporting:

The traditional media buying process only involved manual reporting. On the other hand, programmatic advertising is based on real-time reporting where the advertisers are kept updated with the latest information on performance and results. This real-time reporting makes it possible for brands and companies to make changes in the campaign and make informed decisions as soon as possible.

Justified Cost-Per-Thousand

The cost-per-thousand or CPM of programmatic advertising is calculated based on the results of first and second-auction bids, which is much more predictable and efficient. Traditional CPMs, on the other hand, involves very little justification and can change wildly with no predictability.

What Must Digital Marketers Do Now To Stay Relevant?

Keeping up with constant changes and innovations in the industry can be challenging. However, these new shifts bring new opportunities, which, if harnessed, will help ad campaigns perform better.

While staying within your comfort zone does sound more tempting than tackling the challenges of programmatic advertising; However, it would do you no good in the long run. The rewards of shifting to programmatic advertising are so much more that, very soon, all marketers will adopt this new practice, leaving you behind to deal with the eccentricities of traditional digital media buying.

If you find it challenging to grasp programmatic advertising, outsource the work to one of the best programmatic advertising companies like PadSquad. Partnering with a reputed agency will help you take advantage of these new technologies in time and help you stay relevant in the market.


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