Difference between Programmatic Ads and Direct Ads

Last Updated : 18 Aug, 2023

Today advertising is one of the biggest of increasing revenue for all businesses and producers. At initial knowing about various marketing strategies is a difficult task. The most two common types of advertising are direct ads and programmatic ads. Although the goal is the same to reach a maximum number of customers and gain profits the strategies and processes for both types are different. The below article covers the difference between both in detail.

Programmatic-Ads-and-Direct-Ads

What are Programmatic Ads?

For buying the products, programmatic ads make use of automatic tools and algorithms. Programmatic Ads are different as compared to traditional methods of advertising. Through the use of programmatic ads, the different advertisements can reach many users according to their location, requirements, internet, etc. In programmatic ads, there is no need to directly communicate with the buyers and customers. Programmatic advertising is a less time-consuming process but is prone to the risk of brand security.

What are Direct Ads?

For marketing of the products through Direct ads, an agreement is signed between the advisers and the publishers. Both the advisers and publishers discuss the price of the product, location, for how long the ad will run, etc. Direct Ads are mostly of fixed rates. Various forms of direct advertisement are emails, newspapers, text messages, phone calls, brochures, etc. For publishers, direct ads are more profitable. Direct ads are always guaranteed as compared to other types of ads.

Difference between Programmatic Ads and Direct Ads

Basis	Programmatic Ads	Direct Ads
Working Method	In Programmatic Ads, automatic tools and algorithms are used.	In Direct Ads, no automated tools are used rather the work is carried out manually.
Inventory Type	The type of inventory used in programmatic ads is Remnant Inventory.	The type of inventory used in Direct ads is Premium Inventory.
Flexibility	Programmatic ads are more flexible as compared to direct ads as the advisers can show different ads according to data, location, and need.	Direct ads are less flexible as compared to Programmatic ads.
Price	In Programmatic Advertising RTB auctions are used for determining the price.	In Direct advertising, the prices are determined manually through negotiations.
Evaluation of audience	In Programmatic ads, the evaluation is performed automatically by the advertiser’s DSP.	In Direct ads, the evaluation of the audience is done manually by the advertisers.
Forms of ads	Forms of ads in Programmatic ads are demand-side platforms, such as exchangers and sell-side platforms.	Forms of ads in Direct ads are emails, phone calls, messages, newspapers, coupons, brochures, and online ads.
Scalable and Customisable	Programmatic ads are easy to scale and customize.	Direct ads are difficult to scale and customize.