What is Programmatic advertising in Digital Marketing?

Programmatic advertising is about automatically buying and selling online advertisements. It does not matter how creative an ad is, placing it correctly to the right targeted audience is the only way it can be effective. Hence, buying the best ad space at the best price & selecting the right target audience, is the key thing.

1. Advertisers who buy the ad space online
2. Publishers, who own the digital space and are willing to sell

Programmatic advertising uses algorithmic software that operates the sale and placement of digital ad impressions via ad exchange platforms in a fraction of a second. It also includes traffic data and online targeting methods to give out impressions more precisely and at scale, hence a better return in investment for both parties.

1. A person clicks on a website
2. The website owner puts the ad impression up for auction
3. Advertisers offer bids for the impression
4. The highest bidder wins the ad impression
5. The ad is served on the website to the users
6. The user hopefully clicks on the ad and converts

All the steps above happen instantly, if the user, who clicked on the ad is a strong potential customer, which is calculated based on their surfing data history and online profile, the bid served for your impression will become higher.