A programmatic agency specializes in programmatic advertising, which is a type of digital advertising that uses automated systems to purchase and optimize ad placements in real-time. Unlike traditional advertising, programmatic advertising uses data and algorithms to determine the best ad placement for a specific audience, based on factors such as demographics, behavior, and location.

Compared to traditional advertising agencies, programmatic agencies typically focus on using data and technology to reach targeted audiences more efficiently and effectively. They use advanced algorithms and real-time bidding platforms to identify and purchase ad inventory based on specific criteria such as audience demographics, location, interests, and behavior.

They also offer a variety of other services beyond programmatic advertising, such as data analysis, audience segmentation, ad creative development, and campaign optimization. They often have expertise in a wide range of digital marketing channels, including social media, search engine marketing, video advertising, and display advertising.

A programmatic agency works differently from a traditional agency in several ways:

1. Programmatic Agency is Data-Driven

It relies heavily on data to inform their ad placement decisions. They use sophisticated algorithms and artificial intelligence to analyze data in real-time, and then adjust ad placements based on the results.

2. It provides Real-Time Bidding

It uses real-time bidding (RTB) to purchase ad space in real-time auctions, rather than negotiating rates with publishers. This allows for more efficient ad buying and enables advertisers to target specific audiences with greater precision.

3. It provides Targeted Advertising

It allows for highly targeted advertising based on specific audience segments. They also use data to create custom audience segments, which can be targeted with ads across multiple channels.

4. It provides Optimization

It continually monitor and optimize campaigns based on real-time data. This ensures that ads are performing at their best and that ad spend is being used effectively.

Overall, the main difference between a programmatic agency and a traditional advertising agency is their approach to advertising. While traditional agencies may rely on more manual methods for buying and placing ads, the former leverage technology and data to automate the process and achieve better results.