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Programmatic is the wave of the future for buying, selling, analyzing and optimizing online advertising. Through the use of quick and efficient real-time automated systems (machines rather than human buyers) and algorithms (the way computers think), it is shaping up to be a must-have for targeting individual customers and increasing ROI. But what exactly is this thing that has risen to the top of marketing jargon in recent years? Apart from all the hoopla, it looks like it is something that is here to stay for quite some time and from the analytics gathered to date, this appears to be a good thing. For display advertising buyers and marketers, the general definition can be neatly summed up as a fully automated system for display advertising. In practice, this means that demand side software is used from developing the ad to booking, optimizing and all the way through to analyzing performance.

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Although programmatic buying relies heavily upon computerized automation, this does not mean that machines have or will totally replace the need for the human touch. The use of algorithms, or the step-by-step rules that computers use for automated reasoning, can only go so far. But when the software is part of the tool kit of human marketers and media buyers, it becomes valuable and enhances performance considerably. This type of media buying puts the consumer front and center in its efforts. It engages the customer where they are instead of pushing a product on the consumer. It works by delivering a relevant experience to the finely defined target audience of one. Although automated by machine, it has the human feel of a one-to-one interaction.

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