Glossary of Mobile Advertising Terms
Programmatic (programmatic advertising or programmatic ad buying) is a process where a software is used to buy digital advertising, without any human interactions. Simply put, it’s an automated process where “machines” do the buying, without a human touch. Still, a human touch is needed in programmatic campaigns as rules are planned in advance by marketers. The most common types of programmatic buying are ad exchanges and RTB (real time bidding).
Here’s a simple explanation on how it works. Advertisers use a DSP (demand side platform) to buy the inventory. Depending on the parameters used by the advertiser (placement, price, etc.), the DSP automatically buys the inventory (usually for a single impression). The whole process is made in real time.
Programmatic marketing, in general, is on the rise, and some researchers estimate that in the 2019 more than 50% of all advertising will be programmatic. Programmatic buying is very efficient and publishers and agencies use it to reduce costs and delays. It also allows advertisers to only pay for the relevant impression that they actually receive since they can skip pre-negotiating the price. Another benefit of the programmatic advertising is that you have great targeting options, like the ability to target the sites the consumers are most likely to visit.