What is Programmatic Advertising?
Programmatic advertising is the process of using artificial intelligence to automate ad buying to target a certain audience. According to eMarketer, 90% of all mobile display ads transacted programmatically in 2020 alone. There is a continued investment in social media platforms, and ongoing mission to bring programmatic and its audience-buying capabilities to the in-app space.
Digital advertising is facing multiple shifts in recent years. This type of automation allows a more efficient and quick method which means higher conversion rates and lower customer acquisition costs.
The Steps to Programmatic Advertising (simplegrain.com):
- Step One: The user clicks on a webpage.
- Step Two: The webpage publisher places an ad impression for auction.
- Step Three: The advertisement marketplace holds an auction between advertisers that are competing for the ad impression.
- Step Four: The advertiser with intentions to bid the highest amount wins the spot to display their advertisement.
- Step Five: The ad is sent to the targeted customer.
- Step Six: The targeted customer clicks on the ad which turns into profit.
As marketing in the age of social media improves, the efficiency and effectiveness of programmatic advertising is steadily on the rise.
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