Programmatic advertising is the automated process of purchasing digital ad inventory across the web, mobile, apps, video, and social media within advertiser-defined parameters. It uses machine learning algorithms to deliver the most effective ads to audiences based on a variety of signals, like shopping patterns.
Programmatic ad buying takes place when consumers click on a publisher’s website, and the publisher puts the ad impression up for auction through header bidding and one or more SSPs.
Then, the DSP bids on behalf of the advertiser for that impression based on campaign’s strategies, budget, creative sizes, and other factors.
The publisher automatically assigns impressions to the winning bidder -the advertiser/DSP offering the highest CPM (cost per mille, or the cost per one thousand advertising impressions).