Programmatic Advertising
GLOSSARY
Definition
Programmatic advertising is the automated buying and selling of ad inventory through real-time bidding. Instead of a media buyer calling a publisher to negotiate a placement, software matches available impressions with advertiser bids in milliseconds, millions of times per day.
Why it matters
Programmatic now accounts for the majority of digital ad spending in most markets. The supply chain is long: advertiser, DSP, ad exchange, SSP, publisher. Each layer takes a cut. The IAB estimated in 2023 that roughly half of every programmatic dollar never reaches the publisher. The industry keeps trying to shorten the chain, and the intermediaries keep finding ways to stay relevant.
Tools in this space
Related terms
DSP · DCO · AI content