There are a lot of terms floating around when it comes to digital advertising, but one of the most important is programmatic. When you’re looking for a new job or trying to figure out how to pay for that new car, you probably don’t spend much time thinking about ads. You might see them on websites or in your social media feed, but they’re just part of the landscape—and that’s exactly how advertisers want it.
But behind those ads is a system called “programmatic advertising,” which uses advanced technology to automate the process and transactions involved with placing ads on websites and apps. Programmatic advertising makes it possible to purchase and place ads in less than a second, so advertisers can make sure their audience sees them right away.
Programmatic advertising is the future of digital advertising.
In a world that’s constantly changing and evolving, it can be hard to keep up with the latest trends in programmatic advertising. But whether you’re an advertiser, publisher, or just someone who wants to know more about how this technology works, we’ve got you covered.
Programmatic advertising is changing the way we buy and sell online. If you’re like most people, your first experience with programmatic was probably in a movie theater. You were scrolling through the ads before the movie started and saw something like this:
“Hey, you! Yes, you! Come over here and check out our new product!” As far as advertising goes, this is pretty revolutionary stuff. It’s personalized to your interests (or at least it tries to be), it’s interactive, and it’s delivered instantly—and that’s just the beginning.
So what exactly is programmatic advertising? Programmatic advertising is a system that automates the processes and transactions involved with purchasing and dynamically placing ads on websites or apps. Programmatic advertising makes it possible to purchase and place ads, including targeted advertising content, in less than a second.
Programmatic advertising is the use of automated technology for media buying (the process of buying advertising space), as opposed to traditional (often manual) methods of digital advertising. Four major components make up the basic framework of a programmatic advertising ecosystem. A demand side platform (DSP), supply side platform (SSP), data management platform (DMP), and an ad exchange. Each part of the system works together to serve both publishers and advertisers and allow them to trade effectively.
Programmatic advertising has become an integral part of digital marketing because it allows advertisers to target their desired audience on different devices using data-driven processes. In a nutshell, programmatic advertising is a system that automates the processes and transactions involved with purchasing and dynamically placing ads on websites or apps. Programmatic advertising makes it possible to purchase and place ads, including targeted advertising content, in less than a second.
How does programmatic advertising work?
It’s a lot of steps, but they happen in an instant.
You may have heard that programmatic advertising is the future of advertising. It’s true—and here’s why: Programmatic is all about making sure that the right ad gets in front of the right person at the right time.
Let’s break it down:
A person clicks on a website.
The website owner puts the ad impression up for auction (SSP). This means that all advertisers who want to show ads on this particular website can bid for your attention by offering bids for your attention (DSP).
The highest bidder wins the ad impression and serves the ad to you, so you see it. If you click on it—and hopefully you do!—you’ve converted.
So even though there are a few steps involved, this entire process happens in an instant. What’s more, the competing bids are calculated by algorithms and a host of analytics to automatically determine which bid will be most cost-effective based on what kind of user is looking at your site or app and what kind of customer they might be likely to convert into (if they don’t already have something from you).