Programmatic advertising: what it is and what it is used for

Programmatic advertising is one of the most popular tools of online advertising campaigns. It is used to automatize the purchase and sales of online advertising resources. It means that if you need to buy some space to post your information on a website or another web-platform, you can use programmatic advertising which is operated by artificial intelligence engines without any human involvement.

Elements of programmatic advertising

There are four main elements:

1. Demand-side platform (DSP) which has been created to help the prospective buyer. This platform enjoys access to a large amount of analytics and other useful information which allows the buyer to find either the best sites with their target audience or advertisers.
2. Supply/sell side platform (SSP) operates to help the sellers obtain available advertising space. This element helps to choose the best rate at the market.
3. Ad exchange element is similar to a stock market. The best known players are Facebook and Google; however, a lot of less famous names can be found there as well.
4. Data management platform is the core of programmatic advertising. It helps to collect, systematize and activate data from various sources and represent them in a convenient manner.

Convenience of programmatic advertising

Let us go though the most obvious advantages:

• advertisers themselves choose the format of the advertising they are buying;
• it is possible to launch different ads within the same advertising campaign and create various combinations;
• programmatic advertising reaches its target audience which has a positive effect on conversion; essentially, it is a very precise targeted advertising;
• here are always data and analytics in the campaign efficiency and it is possible to track its economic feasibility;
• the automated process significantly saves time.

What purposes can you use programmatic advertising for?

One of the most recent and popular applications of this technology is the monetization of mobile applications. At the moment, it is one of the most rapidly developing spheres as there are millions of offers and the competition is high, which is why programmatic advertising is a good way to get your share of the online audience.