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What is Programmatic Advertising?

What is Programmatic Advertising?

Programmatic advertising or programmatic media buying consists of using sophisticated software to buy advertising space, in real time, on websites, smartphones, tablets, Connected TVs and outside digital billboards.

It involves using highly advanced rule sets and algorithms to automate the delivery of data across multiple platforms to achieve a specific goal, which in this case is to display ads accurately, quickly and efficiently across one or multiple screens.

Perhaps the simplest example of how programmatic advertising works is to compare it to how eBay works; instead of eBay users competing to bid on a product where the highest bidder wins, the ad buyers (user) competes to bid on advertising space and the highest bidder wins that space meaning their ad will display instantly.

Of course, this happens extremely fast; think billions of processes/requests per second across the entire online advertising ecosystem.

One of the best descriptions of “programmatic” and how it works, subjective of course, was showcased by AdExchanger back in 2012 where five executives were each asked their thoughts on the programmatic buying; great article that covers a good spectrum of the topic and how the experts define it.

Still need more info? No problem, a quick Google search for “what is programmatic advertising” will bring back some great search results with material from Digiday, AdWeekMarekting Land and State of Digital each providing great insights on the topic that is sure to get you handsomely antiquated with the topic at hand.


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