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Programmatic BuyingRefers to any ad space bought automatically on awebpage through either bidding for the space or buyingit directly so it's guaranteed it's yours

Tech Jargon Simplified

Ad Inventory: Amount of ads spacea publisher has available to sell to anadvertiser

Programmatic: Real Time bidding - How it works?

As webpage loads, if it has adspaceon it that is available for Real TimeBidding (RTB) , information aboutwebpage and user viewing is passedon to AD-Exchange

An Ad-Exchange is where real-timeauction (in a milli-second) takesplace. Ad-Xchange auctions offavailable space to highest bidder.

Impression:A single unit of of adspace available.

Some impressions are morevaluable depending on particularwebsite it appears, it's relevanceand likelihood that a user willclick through on the ad.

Price of impression is determinedby what buyers are willing to payin real time

On Advertiser's side: DSP's or DemandSide Platform is a fully automated pieceof software that bids an impression froman Ad-Exchange. It also helps to decidewhich ad-impression to purchase.

Removes the need for Human Sales people,negotiation skills and a huge amount of time as adecision to bid on an impression is madeimmediately and the highest bidder wins

With Real Time bidding in picture itmeans advertisers no longer have topurchase display ads space for a setamount of money over a set period oftime on a website they will assume willbring it traffic

Instead Ads can be specificallytargeted to relevant people across awide variety of sites and budgets canbe managed in real time.

Typical process of inventory buying was inefficientbefore programmatic buying taking upto 42 stepsfor an ad to go from conception to it's eventualdisplay.

An Agency would have to research the best spaceto place an AD, rely on admin heavy process ofsending requests to find the best prices andavailability from publishers, transact deals withpaper Insertion orders and manually add theadvertisements into the AD server. This is beforethe ad has even begun running

Pre Programmatic Buying Era

Advantages of Programmatic Buying