Definition
Programmatic advertising refers to the automated purchase of digital advertising, as opposed to traditional processes involving human negotiations and manual insertion orders.
How It Works
Advertiser defines campaign goals and targeting criteria
DSP (Demand-Side Platform) evaluates available ad impressions in real-time
Bidding occurs automatically based on targeting match and budget
Winner serves their ad to the user
Tracking measures engagement and conversions
Benefits
Efficiency: Automated buying reduces manual work
Precision: Data-driven targeting reaches specific audiences
Scale: Access to billions of daily impressions
Optimization: Real-time adjustments improve performance
Key Terminology
Impression
A single instance of an ad being displayed to a user.
CPM
Cost Per Mille (thousand impressions). The standard pricing model for display advertising.
RTB
Real-Time Bidding. The auction process that occurs in milliseconds when a user loads a webpage.