What is programmatic advertising?
Programmatic Advertising (PA) is a term from online marketing and means something like “automatic advertising”. Essentially, the term describes the automated and software-based trading of advertising space on the Internet. Programmatic advertising covers the entire process, starting with entering the website for the first time through to the ad impressions, the final calls to the advertising material. The auction part, also known as Real Time Bidding (RTB), gives advertisers the opportunity to bid on the advertising space on a website in real time.
What are the advantages of programmatic advertising?
The biggest advantage of programmatic advertising lies in the simplification of the entire handling of trading online advertising. The previous process, which involved making contact, negotiating the offer, producing and sending it, as well as the campaign and the subsequent report, was very time-consuming for advertisers and providers of advertising space. Especially since this process had to be repeated for each individual advertising partner. With programmatic advertising, all processes are concentrated on one platform and guarantee the least possible effort for everyone involved.
How does programmatic advertising work?
In principle, there is a purchasing platform (demand-side platform) and a sales platform (sell-side platform). Between these platforms, essential factors such as quantity, price or duration of the advertising have been defined in advance, which is also called “programmatic guaranteed”. Advertisers can then bid as much as they want on the available advertising space via the auction process in real time, as long as the minimum price is not fallen below. Customers are automatically informed via the system about the availability of free advertising space. The highest bidder gets the guarantee of advertising space, but only pays the price of the second highest bid plus one cent.
