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AI in programmatic advertising: How it works and what’s next
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Programmatic advertising started with banner ads on websites. Today, the same automated buying process reaches TV screens, digital billboards, streaming audio, podcasts and mobile apps. Each programmatic advertising channel has its own inventory, targeting and metrics, and media budgets are quickly moving between them.
This guide explains the main programmatic channels, what each one is best for and how to combine them into one omnichannel programmatic strategy. If you’re new to the topic, start with our explainer on what is programmatic advertising.
Programmatic advertising channels are the different environments where ads are bought and sold through automated technology. The main programmatic channels are:
Channel vs. format. A channel is where an ad runs and how people experience it, such as a TV screen, a podcast or a mobile app. A format is the shape the ad takes within that channel, such as a 15-second video spot, a 300x250 banner or a 30-second audio ad. One channel can carry several formats. Online video, for example, includes both in-stream and out-stream formats.
How buying works across channels. Advertisers buy programmatic media through a demand-side platform (DSP). Publishers and media owners sell their inventory through a supply-side platform (SSP). Impressions are bought through real-time bidding (RTB) auctions, private marketplaces (PMPs) or programmatic guaranteed deals. Because one DSP can buy across many channels, advertisers can plan, target and measure several channels from a single platform.
Here’s a quick summary of each channel:
| Channel | Where ads run | Best for... |
|---|---|---|
| Connected TV (CTV) | Streaming apps on internet-connected TV screens | TV-quality video reach with audience targeting and outcome measurement |
| Digital out-of-home (DOOH) | Digital screens in public places, such as billboards, transit and retail | Local reach and awareness in physical locations |
| Audio | Streaming music, podcasts and digital radio | Reaching people during screen-free moments |
| Online video | In-stream and out-stream video on websites and apps | Video reach at scale across phones, tablets and computers |
| Native | Ad placements that match the look of the surrounding content | Content promotion and less disruptive engagement |
| Display | Banner and rich media ads on websites and apps | Scale, retargeting and cost-efficient reach |
| Mobile and in-app | Mobile browsers and apps on smartphones and tablets | On-the-go reach using device and location signals |
Programmatic CTV is the automated buying of ads that run on internet-connected TV screens, including smart TVs, streaming devices and gaming consoles. Ads appear in streaming apps and video-on-demand services, usually as non-skippable spots before or during the content.
CTV vs. OTT. Over-the-top (OTT) refers to video content streamed over the internet instead of through cable or satellite. OTT can be watched on any device, including phones and laptops. CTV refers specifically to the TV screen. The term “programmatic TV” is often used to describe both CTV and addressable linear TV bought through automated platforms.
Why budgets are moving to CTV. Viewers have shifted from linear TV to streaming, and ad dollars are following them. IAB’s September 2026 forecast projects U.S. CTV ad spend will grow 15.6% in 2026, while linear TV ad spend declines 1.5%. eMarketer forecasts U.S. CTV ad spend will reach $36.95 billion in 2026.
Targeting. Connected TV advertising combines the impact of the TV screen with digital targeting. Common options include:
Measurement. CTV supports metrics that linear TV can’t easily provide, including video completion rate (VCR), unique reach and frequency, incremental reach beyond linear TV and outcomes such as site visits and sales tied back to ad exposure.
What to watch for. Streaming inventory is spread across many apps and devices, which makes frequency control and inventory transparency important. Ask partners which apps your ads run in and how they prevent the same household from seeing the same ad too many times.
With programmatic CTV from Epsilon, ads are targeted using person-first identity, so you can reach in-market viewers across streaming inventory and measure campaigns against real outcomes.
Programmatic DOOH is the automated buying of ads on digital screens in public places. These include billboards, transit stations, airports, shopping malls, gyms, gas stations, elevators and retail stores.
How programmatic DOOH is bought. Media owners connect their screens to SSPs, and advertisers buy those screens through a DSP. Instead of booking a fixed placement for weeks at a time, advertisers can select screens by location, venue type, time of day and audience, then adjust spend while the campaign is live. Because many people can see one screen at the same time, DOOH impressions are usually estimated using audience data for each location and time slot.
Triggers and contextual activation. DOOH ads can be set to run only when specific conditions are met. Common triggers include:
Measurement. DOOH campaigns are commonly measured with impressions and reach based on audience estimates, brand lift studies and store visit or foot traffic studies that compare exposed and unexposed audiences using consented mobile location data.
Where DOOH fits. Programmatic DOOH works well for local and regional awareness and for extending CTV and mobile campaigns into the physical world. In the same forecast, IAB projects U.S. DOOH ad spend will grow 7% in 2026.
Programmatic audio is the automated buying of ads on digital audio platforms. Inventory falls into three main categories:
Targeting. Many listeners stream audio while logged in to a platform or service, so programmatic audio supports audience targeting based on first-party and identity data, plus contextual targeting by music genre or podcast category, time of day, device and location.
Creative considerations. Audio ads have no visuals, apart from optional companion banners on some platforms. Effective audio creative:
Measurement. Key audio metrics include listen-through rate (the share of ads played to completion), reach and frequency, brand lift and conversions attributed to ad exposure.
Audio is growing alongside other digital channels. The IAB projects U.S. podcast ad spend will grow 8.7% in 2026. Epsilon’s solution helps advertisers extend their audience strategy into audio and reach listeners at optimal frequency wherever they’re listening.
Programmatic video is the automated buying of video ads that run on websites and apps across phones, tablets and computers.
Programmatic video vs. CTV. The difference is the screen. CTV ads run on TV screens in streaming apps. Programmatic video, often called online video, runs in video players and content feeds on websites and apps viewed on smaller screens. Viewers can often scroll past or skip online video ads, while CTV ads are typically non-skippable.
In-stream vs. out-stream video.
Viewability and completion metrics. Video campaigns are evaluated with:
The IAB projects U.S. digital video ad spend, excluding CTV, will grow 9.4% in 2026. With Epsilon , advertisers can reach high-value viewers across the open web and measure both online and offline interactions on one platform.
Programmatic native advertising places ads that match the look and feel of the content around them. Examples include sponsored articles in a news feed, recommended content and promoted product listings. Instead of supplying a finished ad, the advertiser provides components such as a headline, image, description, logo and call to action. The publisher then displays those components in its own design.
Native’s main advantage is that it blends in with the page. Because native ads feel less disruptive than standard banners, they work well for content promotion, consideration and mid-funnel engagement.
Display includes banner and rich media ads on websites and apps. It remains one of the most cost-efficient programmatic channels for reach, retargeting and prospecting at scale, and it supports the widest range of inventory. For a full breakdown of display formats, ad sizes, targeting and costs, read our guide to programmatic display advertising. To see how display fits into a person-based media plan, explore Epsilon’s .
Programmatic mobile advertising is the automated buying of ads on smartphones and tablets. It includes two different environments:
Device signals. Mobile campaigns can use signals such as device type, operating system, app category, connection type and location (with user consent). In-app advertising has traditionally relied on mobile advertising IDs. On iOS, Apple’s App Tracking Transparency (ATT) framework requires apps to ask users for permission before tracking them across other companies’ apps and websites, which limits the availability of those IDs.
Common formats. Mobile supports banners, interstitials (full-screen ads shown at natural breaks), rewarded video, native and playable ads.
Cross-device identity. The same person may use a phone, a laptop and a smart TV in the same day. Cross-device identity connects those devices to one person, so advertisers can manage frequency across screens and credit the right touchpoints when measuring results. Without it, one person can look like several separate users.
An omnichannel programmatic strategy uses several channels to reach the same audience, with targeting, frequency and measurement managed together instead of channel by channel. Here’s how to build one:
Steps 4 and 5 depend on a unified identity layer. When each channel identifies people differently, the same customer is counted several times, frequency caps break down and attribution credits the wrong channel. A single, persistent identity across channels fixes that. For a deeper planning framework, read our guide to programmatic advertising strategy.
That’s the foundation of Epsilon Digital, a full-service programmatic media platform built on person-based identity. Every channel—CTV, online video, audio and display—uses the same view of real people, so you can reach your audience, sequence your messages and measure results across the entire plan. Explore Epsilon Digital channel solutions.
The main programmatic advertising channels are:
CTV ads run on internet-connected TV screens inside streaming apps and are usually non-skippable. Programmatic video ads run in-stream or out-stream on websites and apps viewed on phones, tablets and computers.
Yes. Many digital out-of-home (DOOH) screens, such as digital billboards, transit displays and retail screens, are available programmatically. Media owners connect screens to SSPs, and advertisers buy them through DSPs, often using triggers such as time of day, weather or location to decide when ads run.
CTV is the fastest-growing programmatic channel covered in this guide. The IAB’s September 2026 forecast projects U.S. CTV ad spend will grow 15.6% in 2026. Commerce media, which includes retail media, is projected to grow 13.6%. Podcasts (8.7%) and DOOH (7%) are also growing.
Yes. With a unified identity layer, advertisers can reach the same person across CTV, online video, audio, display and mobile, manage frequency across all of them and measure results in one place. This is the main advantage of an omnichannel programmatic approach.
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