What is Programmatic Advertising?

Programmatic advertising refers to the automated buying and selling of digital ad inventory/slots in real-time. It uses AI algorithms to place ads in front of targeted audiences, improving efficiency, relevance, and cost-effectiveness compared to traditional manual methods.

Key Terms

Real-Time Bidding (RTB)

A form of programmatic ad buying where ad spaces are auctioned in real time, allowing advertisers to bid for impressions as users load web pages or apps. 

Ad Exchange

A digital marketplace where publishers and advertisers come together to trade digital ad inventory. It acts as an intermediary for RTB.

Demand-Side Platform (DSP)

A platform used by advertisers to automate the process of buying ad space across multiple platforms, offering data to help make smarter purchasing decisions.

Supply-Side Platform (SSP)

A platform used by publishers to manage and sell their ad inventory. It connects with ad exchanges, DSPs, and ad networks to optimize revenue.

Data Management Platform (DMP)

A centralized platform that collects, organizes, and activates large sets of audience data, which advertisers use to target their programmatic ads.

Ad Inventory

The total number of ad spaces available on a digital platform, such as a website or app, that can be sold to advertisers.

Private Marketplace (PMP)

A programmatic advertising auction model where premium publishers offer their ad inventory to a select group of advertisers, typically at a higher cost and with greater control over where ads appear.

Header Bidding

An advanced programmatic technique where publishers offer their ad inventory to multiple ad exchanges simultaneously, increasing competition and maximizing revenue.

Here’s the Programmatic Advertising Glossary you should check out!

Benefits of Programmatic Advertising

• Efficiency: Programmatic ads are bought and sold automatically, saving time compared to traditional methods.
• Targeting Precision: Advertisers can leverage data to precisely target audiences based on specific criteria, ensuring that ads are relevant to the viewers.
• Real-Time Optimization: Programmatic platforms offer real-time insights, allowing advertisers to adjust campaigns on the fly to improve performance.
• Scalability: It enables advertisers to scale their campaigns across multiple channels and devices, reaching broader and more varied audiences.

Learn More