What is Programmatic Advertising? A Beginner’s Guide for Brands

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In the fast changing world of digital marketing, automation is transforming how brands advertise online. One of the most important developments in this space is programmatic advertising, but for many marketers and small businesses, it still sounds confusing or overly technical.

At Lantan Media, we believe in helping brands navigate the digital landscape with clarity. While we don’t offer programmatic advertising services ourselves, we educate and guide our clients so they can make informed decisions, whether they’re working with ad platforms directly or through other partners.

Here’s a beginner friendly guide to help you understand what programmatic advertising is, how it works, and how it fits into the broader digital ecosystem.

What is Programmatic Advertising?

Programmatic advertising is the automated process of buying and selling digital ad inventory in real time using software, data, and algorithms. It replaces traditional methods that involve human negotiations and manual insertion orders with AI-driven, data-powered systems.

In simple words, Programmatic advertising is like smart bidding for ad space, where machines decide which ad shows up, when it shows up, and to whom, in real-time.

How Does Programmatic Advertising Work?

Here’s a simplified flow of how a programmatic ad is shown:

1. 1. A user visits a website or app
   2. The site sends user data to an ad exchange
   3. Multiple advertisers bid in real-time to display their ad to this user
   4. The highest bidder wins, and the ad is shown instantly
   5. Data is collected and fed back into the system to improve targeting

All of this happens in the blink of an eye.

Types of Programmatic Advertising

There are several formats and methods within programmatic:

• • Display Ads (banners, sidebars, etc.)
  • Video Ads (pre-roll/mid-roll on YouTube or streaming platforms)
  • Native Ads (sponsored articles or content recommendations)
  • Audio Ads (on platforms like Spotify or Podcasts)
  • Connected TV (CTV) and OTT ads

Additionally, different buying methods include:

• • Real-Time Bidding (RTB) – Open auction
  • Private Marketplace (PMP) – Invite only bidding
  • Preferred Deals – Pre-agreed deals with non-guaranteed volumes
  • Programmatic Guaranteed – Pre-agreed deals with guaranteed volumes

Why It Matters for Small and Mid-Sized Brands

Even if your brand isn’t using programmatic ads today, it’s helpful to understand how they work and how they might complement your broader digital strategy in the future.

Benefits of Programmatic Advertising:

• • Advanced Targeting: Ads are shown based on demographics, behaviours, interests, and location.
  • Efficiency: Automates the buying process, saving time and reducing human error.
  • Real-Time Optimisation: Ads can be adjusted live based on performance.
  • Cross-Platform Reach: Advertisers can run unified campaigns across websites, apps, CTV, and more.

Many major brands use programmatic as part of a larger media mix to reach users across platforms in a seamless, data-driven way.

Real-World Example (Educational Purposes Only)

Let’s say a sneaker brand wants to target users who are:

• • Aged 18–35
  • Live in urban metros
  • Recently visited fitness blogs or searched for running shoes

With programmatic, that brand can:

• • Automatically serve a banner ad to those users while they browse unrelated content
  • Retarget users who clicked but didn’t convert
  • Adjust creative or budget in real time based on what’s performing best

Where Lantan Media Fits In

At Lantan Media, we help brands decode the digital world. While we do not offer programmatic ad buying services directly, what we do is:

• • Educate clients on how digital media works
  • Audit current digital efforts and suggest the right platforms (like Meta, Google, LinkedIn, etc.)
  • Build full-funnel strategies where ad placement is just one part of a larger journey
  • Refer trusted partners or tools when advanced solutions like programmatic are needed

If you’re trying to figure out whether programmatic advertising is right for your brand, we can help you explore the pros and cons and map out how it fits into your goals.

What you should understand…..

Programmatic advertising is powerful, but it’s not a silver bullet. It works best when combined with a smart digital strategy, clear creative direction, and ongoing measurement.

Even if your brand isn’t ready for it now, understanding how it works puts you one step ahead in the digital game.

Want to Learn More About Digital Advertising?

Explore our other resources or book a free session with our strategy team to discuss how your brand can grow in today’s dynamic digital environment.

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FAQs

Q. What is programmatic advertising in simple terms?

• • It’s the use of software and AI to automatically buy and show digital ads to the right users at the right time, across websites and apps.

Q. Do small businesses need programmatic advertising?

• • Not necessarily. Many small businesses benefit more from platforms like Google Ads or Meta Ads due to simplicity and control. Programmatic can come later as part of a scaled media strategy.

Q. Is Google Ads the same as programmatic advertising?

• • No, Google Ads is a platform, programmatic is a buying method used across many platforms, including some within Google’s ecosystem (like DV360).

Q. Does Lantan Media run programmatic campaigns?

• • No, Lantan Media does not offer programmatic services. However, we help clients understand how it works and help them to decide if it fits into their strategy.