What is Programmatic Media Buying?
In simple terms, programmatic advertising is the term to define using automated technology for media buying, as opposed to traditional (often manual) methods of digital advertising. Programmatic media buying utilizes data insights and algorithms to serve ads to the right user at the right time, and at the right price. Programmatic media buying can be categorized into different types: RTB or Open auction, Private Marketplace (PMP), and Programmatic Direct.
Typically, the programmatic ecosystem involves three main components: a DSP, SSP and an Ad Exchanger. Typically, ad inventory is bought via a real-time auction. Using programmatic channels, advertisers can buy per impression, thereby targeting the right audience. Since the process is automated, programmatic media buying guarantees speed and efficiency that is not matched in the traditional media buying.
Why is Programmatic Media Buying Important?
The traditional media buying process involves a lot of manual processing, typically with several requests for proposals (RFPs), human negotiations and manual insertions of the orders (IOs), which makes it slow and inefficient. Additionally, ads are purchased in bulk and advertisers have little control over the inventory and placement.
Reference: “Adjust,” Retrieved – 23 April 2018