What Are Programmatic Ads?
As everything around us becomes more automated and efficient, it probably comes as no surprise that digital marketing is heading in the same direction. To put it simply, programmatic advertising means that the entire bidding process for ad space on various websites, apps, and videos has been automated.
Using machine learning algorithms and automated workflows, Programmatic Ads allow you to display your ads to the right audience at the right time based on various data points, such as shopping patterns.
What Are Programmatic Ads?
As everything around us becomes more automated and efficient, it probably comes as no surprise that digital marketing is heading in the same direction. To put it simply, programmatic advertising means that the entire bidding process for ad space on various websites, apps, and videos has been automated.
Using machine learning algorithms and automated workflows, Programmatic Ads allow you to display your ads to the right audience at the right time based on various data points, such as shopping patterns.
How big is the programmatic display advertising market?
All digital advertising is conducted through Programmatic Ads
billions of dollars were spent on “programmatic ads” in 2025
%
of B2B marketers buy or sell ad space through programmatic advertising
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Glossary of Programmatic Advertising Terms
Real-Time Bidding (RTB)
RTB is an open auction where advertisers and publishers meet and agree on a price for an ad slot. The entire process takes place in real time through a so-called SSP (Sell-Side Platform). The highest bidder wins the ad space and gets to display their ad to the website visitor.
Private Marketplace (PMP)
PMP is similar to RTB, but the difference here is that only a select few are allowed to bid on the ad space. An invitation is usually required to access a PMP.
Programmatic Direct
With Programmatic Direct, you cut out the middlemen and sell your ad space directly to the advertiser instead.
Sell-Side Platform (SSP)
An SSP is a type of software that simplifies the process for sellers. It allows publishers to sell ad space for display, mobile, and video in real time to potential buyers.
Demand-Side Platform (DSP)
Just as an SSP works for sellers, a DSP works in a similar way for buyers. Here, advertisers can purchase and bid on ad space.
Successful SEM Case Studies
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Frequently Asked Questions About Programmatic
How can you manage and segment programmatic display advertising?
Programmatic display advertising offers highly advanced capabilities for controlling when, where, and to whom ads are shown. Just like with other digital marketing channels, you can choose both broad and narrow targeting—in real time.
Among other things, you can target your ads based on:
- Time & Frequency – Show ads on specific days of the week, at specific times of day, or with frequency caps
- Demographics—such as age, gender, and household composition (depending on the market and data source)
- Geography – country, region, city, or more precise location data
- Retargeting – Reach users who have previously visited your website or interacted with your content
- Interests & Behaviors – Based on Browsing Patterns, Consumer Interests, and Content Preferences
- Purchasing Behavior & Intent Data – Identify Users Who Are Highly Likely to Make a Purchase Decision
- Contextual targeting – placing ads in relevant editorial contexts, without third-party cookies
As third-party cookies are phased out, modern programmatic advertising is increasingly relying on first-party data, contextual targeting, and AI-based optimization, making advertising both more privacy-friendly and more targeted.
How does programmatic advertising work in practice?
Programmatic advertising is based on automated ad auctions that take place in real time—often in a matter of milliseconds—every time a user loads a web page or app with ad space.
A simplified, yet realistic, user flow looks like this:
A user visits a website at
When a person visits a website with ad space, an ad request is triggered.
The publisher offers ad space through an SSP
The website owner makes the ad space available in a real-time auction through a Supply-Side Platform (SSP).
Advertisers place bids through their DSPs
Advertisers use Demand-Side Platforms (DSPs) to automatically determine whether they want to bid—and at what price—based on target audience, context, data, and campaign goals.
The auction is decided in real time
The most relevant and competitive bid wins the auction—not solely based on price, but often also on quality and relevance.
The ad is displayed to the user
The winning ad is loaded and displayed directly on the page the user is visiting.
The user interacts (or doesn't)
If the ad is relevant, the user may click, convert, or interact—otherwise, they continue browsing as usual.
The entire process takes place automatically and in a fraction of a second, making programmatic advertising scalable, data-driven, and effective.