Browse Definitions :
Definition

programmatic advertising

Contributor(s): Ivy Wigmore

Programmatic advertising is a system that automates the processes and transactions involved with purchasing and dynamically placing ads on websites or apps. Programmatic advertising makes it possible to purchase and place ads, including targeted advertising content, in less than a second.

Ads are placed through an auction system known as real-time bidding (RTB) that manages transactions between the site or app publisher (the supply side) and the advertiser (the demand side). The advertiser sets criteria for buying ads through a software interface, such as a demand-side platform (DSP). When a publisher's software notifies the system that they have ad inventory (spaces for ads) available, those spaces are offered for real-time bidding.

Through automated processes, advertisers bid for the impression (a single view of an ad by a single individual) based on its perceived value, according to established criteria. All these processes and the placement of the ad occur within the time it takes for the requested web page to load. The entire process takes place between the time that a user requests a web page and the time it takes for that page to load in the browser. (For a more in-depth explanation, see our definition of real-time bidding.)

Programmatic advertising has been promoted as a way of optimizing the advertiser's investment and the publisher's profit, while also automating tasks and making it possible to serve consumers with the most relevant purchase opportunities, which are more likely to result in sales. However, there are significant downsides to all this automation. Low bids on impressions can lead to ineffective ad purchases or placement on inappropriate websites, for example, and even ad fraud. Similarly, the publisher can end up with inappropriate ads appearing on their sites. From the customer's perspective, there are concerns about data privacy, as well as the annoyance of being targeted with ads that follow you from one site to another, possibly for something that you've already purchased elsewhere or decided not to buy.

This was last updated in February 2017

Continue Reading About programmatic advertising

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

How important is it for advertisers to be aware of where their ads appear?
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is a protocol that provides authentication, privacy, and data integrity between two communicating ...

  • van Eck phreaking

    Van Eck phreaking is a form of electronic eavesdropping that reverse engineers the electromagnetic fields (EM fields) produced by...

  • zero-trust model (zero trust network)

    The zero trust model is a security model used by IT professionals that requires strict identity and device verification ...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • solid-state storage

    Solid-state storage (SSS) is a type of computer storage media made from silicon microchips. SSS stores data electronically ...

  • persistent storage

    Persistent storage is any data storage device that retains data after power to that device is shut off. It is also sometimes ...

  • computational storage

    Computational storage is an information technology (IT) architecture in which data is processed at the storage device level to ...

Close