how programmatic advertising works

If you aren’t sure what programmatic advertising is, this article will provide some helpful information. Real-time bidding, Targeting tactics, and Cost-effectiveness are just a few topics that we will cover in this article. In addition to the basics, we will look at the benefits and drawbacks of this kind of advertising. Here’s a breakdown of the process. Let’s take a look!

Real-time bidding

The term “real-time bidding” refers to the process of purchasing impressions through a system that connects demand-side platforms (DSPs) and supply-side platforms (SPs). This process is also known as Cost Per Mille, or CPM, and is similar to a car auction where you place a bid based on the price you’d pay for an individual user. The process works through ad exchanges, which connect advertisers with publishers and run auctions.

Demand-side platforms (DSPs) and publishers use ad exchanges to list ad inventory and set bid requirements. Then, real-time bidding takes place at an ad exchange. During the process, advertisers set targeting parameters, including audience demographics and locations. For example, a brand may want to target users who reside in a specific geographic region or those who visited their website recently. Once a bidder comes to a decision, the publisher takes the ad if it meets the criteria.

Targeting tactics

Using geo-fencing or other targeting tactics in programmatic advertising helps advertisers to reach a specific audience. The technology can help you find and target users based on their location, age, interests, and other factors. By geo-fencing, you can even target specific pockets of users. The downside to targeting so closely is that you may end up competing with other advertisers for ad space. This article will discuss some of the best targeting tactics for programmatic advertising.

First, determine your audience. While you should be targeting users across the Web, remember that you should not target consumers based on the number of people who have visited your website or phone number. Your goal is to generate leads based on SMART goals, which are specific, measurable, and relevant. Once you have defined your audience, identify a DSP that supports your objectives. DSPs like Google DV360 can help you target users in different B2B segments. Another important component of successful programmatic advertising is to partner with a DMP, which overlays data across the DSPs.


One of the biggest questions when it comes to digital advertising is cost-effectiveness. Programmatic advertising works by using online targeting methods and traffic data to deliver a higher ROI to both publishers and advertisers. This process has several steps, but the end result is the same: an increase in advertising revenue for both publishers and advertisers. During the bidding process, algorithms and host of analytics determine which ad to serve to visitors. Publishers can increase their revenue by bidding higher than average and the competition is increased.

The cost-effectiveness of programmatic advertising is greatly improved over traditional advertising methods. Most programmatic ads cost between $0.50 and $2 per thousand impressions, which is significantly cheaper than what social media networks charge. In addition, programmatic ads can be sold on a CPM, CPC, or CPA basis. While it is possible to sell ads on a CPC basis, most programmatic advertising is sold on a CPM basis.

Targeting options

With the increase of programmatic purchasing, advertisers are able to add dozens and even hundreds of additional targeting options. These tools allow advertisers to better measure and track ad performance, determine cost per view or interaction, and more. Programmatic buying allows advertisers to serve ads based on audience interests and demographics, such as income, job/career, and education. These factors enable advertisers to create highly targeted advertisements to reach the right audience.

Another way to increase the effectiveness of a programmatic advertising campaign is to target ads to specific web content. For example, a fashion retailer might want to target its ads on the Vogue Magazine website. Similarly, a financial services company might want to target ads on Forbes. Programmatic advertising allows advertisers to target specific audiences based on their preferences. This makes it possible to customize your ads to meet the needs of your customer and increase their likelihood of success.

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Damon Nelson
Damon Nelson

Entrepreneur, business consultant, software developer, and marketing professional. Many hats with one simple goal... help you make more money with simple automation, proven strategies, and a little common sense. Want to learn more? Check out what I've been reading lately.