Programmatic Advertising is the automatization of the processes and transactions involved with purchasing and placing ads in applications or websites.
In Programmatic Advertising, advertising inventories are usually bought and sold through ad networks or ad exchanges. These networks connect publishers offering their unsold inventories with advertisers searching for places to display their ads.
The trading process in these networks is working with a technology called Real-Time-Bidding (short:RTB), which determines the price for advertising inventories based on demand and supply in real time.
However, the main benefit of the programmatic selling and buying of inventories is actually that it matches the display of advertisements with user profiles. Accordingly users only get to see advertisements that are probably relevant to them and that they are likely to purchase. Thus Programmatic Advertising makes digital advertisement a lot more specific and therefore more efficient than conventional marketing methods.
Programmatic Advertising is only working with targeting technologies. Using cookies, mobile device IDs or other tracking technologies, it is possible to collect diverse user information. Using these information, advertisers can display their ads to users that specifically belong to their desired target group.