Automated buying and selling of digital ad space using algorithms and real-time bidding.
Programmatic Advertising is the automated buying and selling of digital advertising using technology platforms and real-time bidding (RTB). Advertisers set targeting parameters (demographics, interests, keywords, context) and budgets, and algorithms automatically purchase ad impressions from publishers in milliseconds via ad exchanges. Programmatic includes display, video, connected TV (CTV), digital audio, and native ads.
Programmatic advertising enables precise targeting at scale without manual media buying. It allows brands to reach highly specific audiences across thousands of websites efficiently, with real-time optimisation based on performance data.
A travel company uses programmatic advertising to target users who have recently visited travel review sites, are located in high-income areas, and are searching for "flights to Bali" — delivering hyper-relevant ads across thousands of websites.
Google Display Network (GDN) is a single programmatic platform. Programmatic advertising generally refers to the broader ecosystem including multiple DSPs (Demand-Side Platforms) that access inventory across many ad exchanges.
CPC
Cost Per Click — the amount paid each time someone clicks on a paid advertisement.
CPM
Cost Per Mille — the cost per 1,000 ad impressions.
Performance Marketing
Advertising where brands pay only when a specific action (click, lead, sale) occurs.
Retargeting
Showing ads to users who have previously visited your website or engaged with your brand.