Definition:
Programmatic buying or “real-time bidding” refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes to load a web page. These auctions are usually facilitated by ad exchanges or bidding platforms.
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How programmatic purchasing works
As ad impressions are loaded into a user’s web browser, information about the page being viewed and the user is passed to an ad exchange, where the ad is auctioned. The winner loads on the website almost instantly, as the whole process takes only milliseconds to complete.
You can recognize if a user has previously been on a site looking at a specific pair of pants, for example, and therefore you can be prepared to pay more to the page you are interested in to put ads on it.
Calculation of prices in programmatic purchasing
The price of impressions is determined in real time based on what buyers are willing to pay, hence the name “real-time bidding”.
Frequently asked questions about Programmatic Buying
What does Programmatic Buying mean in digital marketing?
Programmatic Buying refers to the concept described in this glossary entry: Definition: Programmatic buying or "real-time bidding" refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes to load a web page. How programmatic purchasing works As ad impressions are loaded into a user's web browser, information about the page being viewed and the user is passed to an ad exchange, where the ad is auctioned. It gives teams a shared vocabulary for analysing digital projects.
When should teams pay attention to Programmatic Buying?
Teams should review Programmatic Buying when it affects acquisition, measurement, user experience, content, automation or campaign performance. The important step is to connect the definition with a real decision.
How is Programmatic Buying used in a digital strategy?
Programmatic Buying is used by translating the concept into practical checks: where it appears in the funnel, which data or channel is involved and whether it needs optimisation, monitoring or documentation.
What is a common mistake when interpreting Programmatic Buying?
A common mistake is using Programmatic Buying too broadly. It is better to verify the context, the tool or the metric involved before making strategic or technical conclusions.