What Is Programmatic Advertising And How Does It Work?
Programmatic advertising uses automated systems to buy and place ads in real time. For example, when a visitor lands on a website with advertising (e.g., washingtonpost.com), the system instantly determines which ad to display (in a leaderboard, big box, etc.) based on the visitor’s profile (age, location, online behavior) and the highest bidding advertiser—just like an auction. This happens in the few milliseconds while the page loads: bids from hundreds (sometimes thousands!) of advertisers come in to buy that ad unit before the chosen ad (the winning bidder) is served.
This ensures your advertiser’s ad is shown to a highly relevant audience.
How Do Programmatic Ads Work?
At the core of programmatic advertising is real-time bidding (RTB). It’s like a live auction that happens in milliseconds every time a web page loads.
A user visits a website.
The site sends a request to an ad exchange through a demand-side platform (DSP), including anonymized information about the user (such as location, device, and browsing behavior).
Advertisers bid in real time to show their ad to that user.
The highest bidder’s ad is shown—all in the time it takes for the page to load.
Why Should Advertisers Love Buying Programmatically?
It’s efficient: The process automates what used to be manual ad buying.
Precise targeting: Use data to reach audiences based on demographics, behaviors, intent, and more.
Real-time optimization: Adjust budgets and creatives on the fly.
Scalable reach: Access inventory across thousands of websites, apps, audio platforms, CTV/OTT (Connected TV or Over-the-Top TV), and DOOH (Digital Out of Home)—all of which are products available here at SoCast.
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