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The digital marketing glossary > P > What is Programmatic buying definition?

What is Programmatic buying definition ?

Programmatic buying commonly refers to automated processes used for ad space buying.

In recent developments of digital advertising, the term of programmatic buying tends to refer to display advertising buying / selling by the means of ad exchanges and RTB. However, programmatic buying started on the Internet with search advertising and sponsored textlinks platforms. Keyword bidding management system developed by Google’s Adwords was unquestionably the first large scale Internet application of programmatic buying.

Strictly speaking, programmatic buying corresponds to the buyer’s point of view of an ad exchange. Advertisers use a demand side platform (DSP) to purchase the inventory, which is more often unsold inventory.

The DSP automatically makes the decision to buy according to different parameters entered by the advertiser (price, targeted profile, placement, success metrics...). The purchase is made in real time and usually for a single impression.

Programmatic buying allows publishers and agencies to reduce costs and delays.

Programmatic buying has been used earlier for TV commercials but the automation is less extensive in this area.

Fore more details, see also ad exchange.

Published on Friday 26 April 2013, mis a jour le Friday 3 July 2015 (Authors)