Word of the Day: programmatic advertising

Word of the Day Daily updates on the latest technology terms |March 21, 2017

programmatic advertising 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. Quote of the Day "Marketing and advertising are the sweet spots for big data, but those who serve up marketing insights and ad space will need to evolve to survive." - Jack Vaughan   Trending Terms real-time bidding ad exchange targeted ad purchase intent ad fraud demand-side platform   Learning Center Marketing and advertising remain sweet spots for big data technology Marketing and advertising are the sweet spots for big data, but those who serve them up will need to evolve to survive. Learn more about how marketers and advertisers use big data. Technology advertisements that cross ethical, legal lines With technology advertisements, it's hard to tell fact from fiction, says technology and security consultant Kevin McDonald. Irresponsible claims may put lives at risk. Open Your Marketing Mind to Context and Quality This blog post warns marketers about perils of low cost CPMs associated with programmatic advertising and lays out better ways to target audience through context. Before You Leap, Understand the 4 Pillars of Intent-Based Marketing This blog post addresses the landscape, challenges and solutions in the B2B IT intent data market and lays out 4 building blocks for intent-based marketing success. Advertising terminology on the internet This page provides brief definitions for the most commonly-used terms related to internet advertising, along with links to full definitions for many of the terms. Writing for Business Optimizing an ad campaign once it's been set up is incredibly important and is often something advertisers ________. A. look over B. overlook Answer       Stay In Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com   Visit the Word of the Day Archives and catch up on what you've missed!   FOLLOW US About This E-Newsletter This e-newsletter is published by the TechTarget network. To unsubscribe from Whatis.com, click here. Please note, this will not affect any other subscriptions you have signed up for. TechTarget, Whatis, 275 Grove Street, Newton, MA 02466. Contact: webmaster@techtarget.com Copyright 2016 TechTarget. All rights reserved.