Programmatic advertising automates the buying and selling of ad inventory using software and data. Instead of traditional insertion orders and manual negotiations, advertisers reach audiences through real-time auctions and demand-side platforms (DSPs).
The core value of programmatic is efficiency and scale: it enables precise audience targeting, dynamic creative optimization, and quick campaign adjustments based on performance signals. Key players include advertisers, publishers, DSPs, supply-side platforms (SSPs), and ad exchanges.
When a user visits a page, the publisher signals available inventory to an exchange. Bids are submitted in milliseconds and the highest relevant bid wins. The entire flow is orchestrated programmatically and measured with analytics to optimize outcomes.
