Programmatic Advertising
An automated process for buying and selling digital advertising space using complex algorithms and real-time data.
Description
Programmatic advertising leverages technology to automate the buying and selling of digital ad space. Instead of manually negotiating and purchasing ad placements, programmatic advertising uses algorithms and real-time data to deliver the right ads to the right audience at the right time. This method increases efficiency, reduces human error, and allows for precise targeting based on user behavior, demographics, and other criteria. By streamlining the ad buying process, businesses can achieve better ROI and more effectively reach their target customers.
Examples
- A travel agency uses programmatic advertising to target users who have recently searched for vacation destinations. The system automatically places ads for vacation packages on websites that these users visit, increasing the likelihood of conversions.
- An e-commerce retailer employs programmatic advertising to re-target customers who have abandoned their shopping carts. The automated system displays personalized ads for the products left behind on various platforms, encouraging users to complete their purchases.
Additional Information
- Programmatic advertising can include various types of ads such as display, video, mobile, and social media ads.
- The process involves several key players, including advertisers, publishers, ad exchanges, and demand-side platforms (DSPs).