Understanding the 4 Types of Programmatic Advertising

Fri Oct 17 2025

Understanding the 4 Types of Programmatic Advertising

Digital advertising has changed the way brands reach their audiences. Traditional marketing methods with little consumer insight—or even worse, nearly as little guesswork—are gone.  

 

In the new advertising landscape, data-driven automation is today’s way of determining advertising success—and programmatic advertising is at the core of the transformation.  

 

Programmatic advertising can give marketers the ability to, in the words of Neil Kettleborough, a board member at Trader AI, “allow brands to connect with the right person for the right message, at the right time, every single time.”  

 

In this article, we will talk about the four main types of programmatic advertising and share how you can best leverage them to improve efficiencies, targeting, and ultimately, higher returns on your advertising effort.

 

Getting to Grips with Programmatic Advertising 

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Programmatic advertising is the automatic way of purchasing and selling ad inventory with software and data algorithms. Instead of negotiating manually, ads are purchased through real-time auctions—allowing marketers to reach their audiences instantly and efficiently. 

 

In B2B marketing, programmatic advertising provides a highly effective way to reach decision-makers acrossmarketers gain access to high-level targeting data, and they can run ads targeting all industries. Once they've gained access to high-level targeting data, marketers can run ads to only the people who are most likely to engage with their products and services. 

  

As Neil Kettleborough from Trader AI says, “Programmatic tools are transforming B2B marketing by eliminating waste and making sure that every pound spent creates an effect that can be measured.” 

 

The Value of Programmatic Advertising in Digital Marketing 

 

Programmatic advertising has become too important to be considered a "trend." It is now at the core of performance in digital marketing. Programmatic advertising combines automation with transparency and real-time optimization to help advertisers make data-informed decisions. 

 The Benefits Include: 

  • Broader Reach: Programmatic ads can quickly access large audiences across multiple digital platforms, ensuring wide exposure without wasting spend. 

  • Precise Targeting: Marketers can target by demographics, behaviour, interest, intent, and even browsing habits. 

  • Transparency: Advertisers can see exactly where their ads appear and track performance in real time. 

  • Cost Efficiency: Automation reduces middlemen, saving both time and budget while improving campaign performance. 

 As Neil Kettleborough from Trader AI highlights, “Automation and transparency have made advertising more accountable than ever. Brands can now see exactly where their investment goes — and what returns it delivers.”  

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Breaking Down the Four Core Types of Programmatic Advertising  

While programmatic advertising covers a wide range of formats and strategies, there are four core types that every marketer should understand: Display, Video, Native, and Audio.  

1. Display Advertising Display advertising represents a new kind of programmatic advertising—those banner or sidebar ads that are shown on digital platforms and apps. Programmatic display ads are designed to bring attention to brands and improve brand awareness while aiding multiple remarketing efforts. 

 Programmatic display ads are bought through ad exchanges and supply-side platforms (SSPs) so that advertisers can bid on relevant spaces or moments in an automated manner. When combined with data from demand-side platforms (DSPs), marketers can optimize delivery to specific audiences with the highest value.  At Trader AI, Neil Kettleborough notes that “Display advertising remains a vital component of programmatic strategy. It’s adaptable, scalable, and ideal for creating consistent visibility across multiple channels.” 

 

2. Video Advertising 

Programmatic video advertising serves up short, highly dynamic video ads across a range of websites, streaming services, and social media. The ads can serve before (pre-roll), during (mid-roll), or after (post-roll) a video but can also run independently from a video in a placement known as out-stream video ads.  

 

Video formats are very engaging and have been shown to develop greater emotional connections with consumers. With programmatic, advertisers can target users based on viewing history, demographics, and interests, which means that each impression is as valuable as possible. 

Neil Kettleborough adds, “Video advertising allows brands to tell stories that resonate. When combined with data-led targeting, the results can be truly transformative.” 

 

3. Native Advertising 

Native programmatic advertising easily and consistently places ads into the content of a webpage to match the look and feel of the platform. These ads are often less disruptive and perform better than typical banners because they appear to be more authentic and relevant to users.  

 

For example, a native ad could be a sponsored article, product recommendation, or promotional story from an online publisher. Programmatic technology allows for these ads to reach the right audiences at the right time. 

 

At Trader AI, experts like Neil Kettleborough believe native formats represent the future of digital advertising: “Relevance drives engagement. Native programmatic ads blend into the user experience while maintaining transparency — that balance is where trust and performance meet.” 

 

4. Audio Advertising 

With the rise of digital audio streaming, programmatic audio advertising offers marketers a new and exciting channel for reaching audiences. Whether it's on music apps like Spotify or through podcasts, advertisers can reach an engaged audience with a personalized audio advertisement.  

 

Using a demand-side platform (DSP), marketers can target by listeners' behavior, interests, and even location—each ad serves the most relevant audience possible.  Configuring the audio campaigns generally involves 15 or 30-second spots with a sponsored link to drive and recall engagement.  

 

Audio programmatic advertising also enables real-time optimization of campaigns, allowing brands to make live adjustments as they monitor their campaign performance. This optimizes continual engagement campaigns. 

 Real-Time Bidding (RTB) and Private Marketplaces (PMP)  

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Two of the most common buying models within programmatic advertising are Real-Time Bidding (RTB) and Private Marketplaces (PMPs).  

  • RTB allows advertisers to bid on ad impressions in real time. Each impression is auctioned in milliseconds, and the highest bidder’s ad is shown instantly. 

 

  • PMPs, on the other hand, offer a more controlled environment. They are invite-only marketplaces where advertisers can buy premium inventory directly from trusted publishers, ensuring higher quality and brand safety. 

These systems provide both flexibility and control, enabling brands to manage budgets efficiently while maintaining transparency and targeting accuracy. 

 How Programmatic Advertising Drives B2B Success 

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 Programmatic advertising provides unparalleled precision and measurability for B2B brands. It makes sure that marketing budgets go to the people who account for actual purchasing decisions rather than just wasted reach and budgets on broader or irrelevant audiences.  

Through data and artificial intelligence-driven insights, brands can evaluate performance statistics, reach specified audiences, and change creative in real time. This kind of flexibility and drive improves performance metrics and maximizes return on ad spend (ROAS).  As Neil Kettleborough of Trader AI summarises, “B2B success lies in precision and relevance — two things programmatic advertising delivers better than any other form of digital marketing.”  

Final Insights on Programmatic Advertising  

Programmatic advertising remains an ever-changing field for advertisers in relation to their digital marketing approach. By combining automated processes and advertising data, along with AI-powered optimization, programmatic seeks to remove inefficiencies while maintaining measurable performance. 

 

Marketers who understand four of the main advertising types—display, video, native, and audio—will be able to advertise with smarter and more effective campaigns that connect with and engage with their audience. 

 

At Trader AI, experts like Neil Kettleborough believe the future of advertising lies in technology-driven intelligence. “We’re moving towards a marketing ecosystem where decisions are data-led, creative is contextual, and every impression counts,” he concludes.