{"id":71897,"date":"2023-07-18T17:29:09","date_gmt":"2023-07-18T17:29:09","guid":{"rendered":"https:\/\/mailrelay.com\/glossary\/programmatic-advertising\/"},"modified":"2026-10-07T13:29:42","modified_gmt":"2026-10-07T13:29:42","slug":"programmatic-advertising","status":"publish","type":"glossary","link":"https:\/\/mailrelay.com\/en\/glossary\/programmatic-advertising\/","title":{"rendered":"Programmatic advertising"},"content":{"rendered":"\n

Programmatic advertising is the automated buying and selling of online ad space, using software that decides in milliseconds which ad to show each user and at what price.<\/strong> It is also known as programmatic buying<\/strong> (programmatic media buying<\/em>).<\/p>\n\n

Instead of negotiating with each website by phone or email, the advertiser defines who they want to reach and how much they want to pay. The platforms do the rest.<\/p>\n\n

What is programmatic advertising?<\/h2>\n\n

It is a way of buying ads, not an ad format. It is used to buy banners, videos, native ads, audio or digital out-of-home screens.<\/p>\n\n

What sets it apart is automation: the decision is made impression by impression, with data on who is viewing the page, in what context and on what device. It is mainly used in display advertising<\/a>: ads on websites and apps.<\/p>\n\n

How programmatic advertising works<\/h2>\n\n

When someone opens a website with ad space, this happens in less than a second:<\/p>\n\n

1. The website offers the space.<\/strong> Its sell-side platform (SSP) announces that an impression is available, with data about the context and the user.<\/p>\n\n

2. Advertisers bid.<\/strong> Their demand-side platforms (DSPs) assess whether that person fits their campaign and how much to pay.<\/p>\n\n

3. The best offer wins.<\/strong> The ad exchange<\/em> awards the space.<\/p>\n\n

4. The ad is shown.<\/strong> The user sees it when the page loads, without noticing the process.<\/p>\n\n

Element<\/th>Who uses it<\/th>What it’s for<\/th><\/tr><\/thead>
DSP (Demand-Side Platform<\/em>)<\/td>The advertiser or their agency<\/td>Buying impressions based on audience and budget<\/td><\/tr>
SSP (Supply-Side Platform<\/em>)<\/td>The website or publisher<\/td>Selling its ad space at the best price<\/td><\/tr>
Ad exchange<\/td>Both<\/td>Marketplace where bids and offers meet<\/td><\/tr>
DMP<\/a> or CDP<\/a><\/td>The advertiser<\/td>Organizing data to segment the audience<\/td><\/tr><\/tbody><\/table><\/figure>\n\n
\"Infographic<\/figure>\n\n

Types of programmatic buying<\/h2>\n\n
Type<\/th>How it works<\/th>Who it is for<\/th><\/tr><\/thead>
RTB (real-time bidding<\/em>)<\/td>Open real-time auction<\/td>Advertisers looking for reach at a good price<\/td><\/tr>
Private auction (private marketplace<\/em>)<\/td>Auction only for invited advertisers<\/td>Brands that want specific publishers and more control<\/td><\/tr>
Preferred deals (PD<\/em>)<\/td>Fixed price, with priority before the auction<\/td>Advertisers with a trusted publisher<\/td><\/tr>
Programmatic direct (programmatic guaranteed<\/em>)<\/td>Impressions reserved at a fixed price<\/td>Campaigns with guaranteed volume and publishers<\/td><\/tr><\/tbody><\/table><\/figure>\n\n

The further down the table, the more control over where the ad appears and, usually, the higher the price.<\/p>\n\n

Advantages of programmatic advertising<\/h2>\n\n

Precise targeting.<\/strong> You show the ad to people who match your customer, not to a website’s entire audience.<\/p>\n\n

Real-time adjustments.<\/strong> You can change bids, audiences or creatives while the campaign is running.<\/p>\n\n

Reach.<\/strong> You reach thousands of websites and apps from a single platform.<\/p>\n\n

Detailed measurement.<\/strong> Impressions, clicks, conversions and cost per result at any time.<\/p>\n\n

Risks of programmatic advertising<\/h2>\n\n

Brand safety.<\/strong> Your ad can appear next to content you don’t want to be associated with if you don’t use exclusion lists.<\/p>\n\n

Ad fraud.<\/strong> Impressions or clicks generated by bots that you pay for without anyone seeing them.<\/p>\n\n

Intermediaries.<\/strong> Each platform takes a share of the budget.<\/p>\n\n

Privacy.<\/strong> Several browsers block third-party cookies and data protection laws require consent. Targeting with third-party data is getting harder and harder. Find out what cookies<\/a> are and what a cookieless<\/a> environment means.<\/p>\n\n

Complexity.<\/strong> Without experience or an agency, it is easy to spend a lot on programmatic advertising without control.<\/p>\n\n

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Build your own audience<\/strong><\/p>\n\n\n\n

Turn the visits you pay for into subscribers with Mailrelay forms and talk to them without relying on cookies.<\/p>\n\n\n\n

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Create a free account<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n

First-party data and email marketing<\/h2>\n\n

With fewer third-party cookies, programmatic advertising relies more on the data your brand collects directly and with permission: purchases, subscriptions and preferences. This is where email has a clear role:<\/p>\n\n

Your list is your first-party data.<\/strong> Subscribers have given you their email address and their consent. You don’t depend on a browser or a third party.<\/p>\n\n

More reliable audiences.<\/strong> Many advertising platforms let you create audiences from your customer lists, always with a legal basis for that use.<\/p>\n\n

Combine channels.<\/strong> Programmatic advertising attracts new users. A form turns them into subscribers and email accompanies them all the way to purchase.<\/p>\n\n

Declared data.<\/strong> Asking at sign-up or in a preference center what each subscriber is interested in generates zero-party data<\/a> that helps you segment better.<\/p>\n\n

\"Infographic<\/figure>\n\n

Common mistakes<\/h2>\n\n

Starting without a goal.<\/strong> Without a clear KPI, the platform optimizes for things you don’t care about.<\/p>\n\n

Over-segmenting.<\/strong> A tiny audience makes each impression more expensive and limits reach.<\/p>\n\n

Not checking where the ads appear.<\/strong> Placement reports show which websites the money was spent on.<\/p>\n\n

Measuring only clicks.<\/strong> What matters are conversions and the cost of each one.<\/p>\n\n

Forgetting the user who already knows you.<\/strong> Capturing their email costs less than paying again to show them another ad.<\/p>\n\n

How Mailrelay helps you<\/h2>\n\n

With Mailrelay you can turn the visits coming from your ads into subscribers, segment them by their interests and send them campaigns with their consent. Your list becomes a channel you own that doesn’t depend on third-party cookies.<\/p>\n\n

The free account includes up to 80,000 emails a month and 20,000 contacts, with human support by chat, ticket and phone.<\/p>\n\n

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Send your newsletters with Mailrelay<\/strong><\/p>\n\n\n\n

Up to 80,000 emails a month and 20,000 contacts for free, with human support on every plan.<\/p>\n\n\n\n

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Try Mailrelay for free<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n

Frequently Asked Questions<\/h2>\n\n

These are the most common questions about automated ad buying.<\/p>\n\n

What is programmatic advertising in a nutshell?<\/h3>\n\n

The automated buying of online ads, impression by impression, based on audience and price.<\/p>\n\n

What is the difference between a DSP and an SSP?<\/h3>\n\n

The DSP is used by the advertiser to buy ad space. The SSP is used by the website to sell it.<\/p>\n\n

What is RTB?<\/h3>\n\n

The real-time auction of each ad impression, open to all advertisers bidding on it.<\/p>\n\n

Is it the same as Google Ads?<\/h3>\n\n

Not exactly. Google Ads includes programmatic buying in its display network, but programmatic advertising covers many other platforms and publishers.<\/p>\n\n

Is it suitable for a small business?<\/h3>\n\n

Programmatic advertising can work, but it requires budget and control. Many small businesses start with search or social media ads and their own subscriber list.<\/p>\n\n

Related terms<\/h2>\n\n