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Programmatic advertising is a method of digital marketing in which the purchase of advertising space is automated and carried out in real time, rather than being manually negotiated between advertisers and publishers. This type of advertising uses data, algorithms and technology to optimise ad placements on websites and in apps. In essence, programmatic advertising automates the process of buying and placing ads to increase efficiency and improve targeting.
Here are some key components and features of programmatic advertising:
Real-time Bidding (RTB): With RTB, advertising space is auctioned in real time. Advertisers bid on ad space, which is sold to the highest bidder in a fraction of a second.
Targeting and personalisation: Programmatic advertising allows ads to be targeted to specific audiences based on various data, including demographic information, behavioural patterns and interests.
Automation: Ad booking, placement and delivery are largely automated. This saves time and resources compared to manual booking.
Data analysis.
Data analytics: Large amounts of data are used to analyse and optimise the success of ad campaigns. This can help to continuously improve ad performance.
Programmatic Advertising Ecosystem: This includes advertisers, agencies, demand-side platforms (DSPs), supply-side platforms (SSPs) and data management platforms (DMPs), all of which interact with each other to enable programmatic campaigns.
Programmatic advertising has the advantage of increasing the efficiency of advertising campaigns, improving targeting and optimising the cost per click or impression. It also enables faster adaptation to changing market situations and better use of advertising budgets. However, using programmatic advertising also requires an understanding of the technology and the ability to effectively analyse and interpret data.