Programmatic advertising is a method of digital advertising that uses automated technology for the buying and placement of ads online. This approach utilizes data insights and algorithms to serve ads to the right user, at the right time, and in the right context. By leveraging machine learning and real-time bidding, programmatic advertising allows advertisers to target audiences more precisely and efficiently than traditional advertising methods. The process involves the use of a demand-side platform (DSP) for advertisers to purchase ad impressions across a range of publisher sites that are matched with the advertiser’s target audience criteria, which could be based on demographics, interests, behavior, or location. The ad inventory is made available through supply-side platforms (SSPs) and ad exchanges, which are platforms that aggregate ad space from publishers. The entire transaction, from ad placement to performance tracking, is automated, leading to more effective campaigns and reduced costs due to the elimination of manual negotiations and insertion orders. Programmatic advertising has become increasingly popular as it provides a scalable and data-driven way for advertisers to reach their desired audience with personalized messaging, ultimately aiming to improve the return on investment of their advertising spend.
