The programmatic advertising system has streamlined the online ads' buying and selling process. It's more efficient than before because it can automate many steps in a process that would have been carried out manually, such as ordering or setting up your campaign. Simply put, it's meant to replace human intervention with machine learning and AI-based optimization.
Understanding programmatic media buying requires a thorough knowledge of its terminology. Here are the important jargons that you may want to become familiar with:
Real-Time Bidding (RTB)
RTB is when inventory prices are decided through an auction in real-time. Both publishers and advertisers can participate. This is a cost-effective way to buy media targeting a large audience.
Private Marketplace (PMPs)
PMPs have restrictions on who can participate. They are reserved for the selected advertisers on an invite-only basis.
In this case, a publisher bypasses the auction process by selling media inventory at a fixed cost per mille (CPM) to one advertiser or multiple advertisers.
Sell-Side Platform (SSP)
Enables publishers to sell video, mobile, and display ads automatically to potential buyers and in real-time. This includes ad exchanges, networks, and DSPs. It'd allow publishers to have greater control of their inventory and CPMs.
Demand-Side Platform (DSP)
This is the software that enables agencies and advertisers to buy ad inventory cross-platform.
This is the way suppliers feed inventory to an ad exchange. A DSP connects to an ad exchange, enabling the sale and purchase of ad space between advertisers, agencies, networks, and publishers. The bidding process can then be used to determine inventory prices.