Programmatic advertising is the automated buying and selling of digital advertising inventory. Rather than negotiating ad placements directly with individual publishers, advertisers use software platforms to purchase ad space across thousands of websites and apps in real time, targeting specific audience segments based on data. Programmatic has become the dominant method for buying display, video, and audio advertising at scale.
How does programmatic advertising work?
When a user visits a webpage that has programmatic ad inventory, the publisher's ad server sends a bid request to an ad exchange. Advertisers who have set up campaigns through a Demand-Side Platform (DSP) submit automated bids in milliseconds. The highest bidder wins the impression and their ad is displayed to the user.
This process, known as real-time bidding (RTB), happens faster than the page loads. Advertisers define their audience targeting, creative assets, and bid parameters in the DSP, and the system handles placement automatically across the publisher network.
What types of inventory can be bought programmatically?
Programmatic buying covers a wide range of ad formats and placements:
- Display: banner and image ads on websites and apps
- Video: pre-roll and mid-roll video ads on news sites, streaming platforms, and apps
- Connected TV (CTV): ads served on smart TVs and streaming devices
- Digital out-of-home (DOOH): programmatic buying of digital billboard and screen inventory
- Audio: ads on music streaming and podcast platforms
How is programmatic different from Google Display Network?
Google Display Network (GDN) is itself a programmatic system, but it only covers inventory within Google's own publisher network. Independent programmatic platforms such as Google's Display and Video 360 (DV360), The Trade Desk, or Xandr access a much broader range of inventory across multiple exchanges, including premium publishers that are not part of GDN. For campaigns that require large scale, specific publisher environments, or access to non-Google inventory, a dedicated DSP gives significantly more flexibility than GDN alone.
Is programmatic advertising relevant for businesses in Thailand?
Yes, programmatic inventory is available in Thailand through both Google Display Network and independent DSPs. For most small and medium-sized businesses, GDN accessed through Google Ads is sufficient and straightforward to manage. Full programmatic via a DSP tends to be more relevant for larger brand budgets where scale, premium inventory access, or detailed audience data layering justify the additional complexity. At Phoenix Media, we use GDN for display campaigns and can advise on when a more advanced programmatic setup is warranted.