Programmatic
bidding
Programmatic bidding is a method used in digital advertising where ad inventory is bought and sold automatically through algorithms, rather than through manual negotiations. This process involves real-time auctions where advertisers bid on available ad space, and the highest bidder’s ad is displayed to the target audience.
Here’s how it generally works:
Advertisers and publishers connect through ad exchanges, which are platforms that facilitate the buying and selling of ad inventory in real-time auctions.
Publishers make their ad space available on the ad exchange. This could be space on websites, mobile apps, or other digital platforms.
Advertisers use demand-side platforms (DSPs) to bid on the available ad space. DSPs allow advertisers to set parameters for their ad campaigns, such as target audience, budget, and bidding strategy.
When a user visits a website or app, the available ad space is put up for auction in real-time. Advertisers’ bids are submitted and evaluated in milliseconds, and the highest bidder wins the auction.
The winning ad is displayed to the user in the available ad space.
Programmatic bidding offers several benefits, including:
Advertisers can target specific audience segments based on demographics, interests, and behavior.
Advertisers can adjust their bids and targeting parameters in real-time based on performance data, maximizing the effectiveness of their campaigns.
Advertisers have visibility into where their ads are displayed and how they perform, allowing for greater control and accountability.
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