Programmatic buying refers to a procedure for purchasing online advertising spaces.
It operates in real-time and makes use of automated platforms to facilitate communication between the buyer (the one making the purchase, such as agencies and advertisers) and the seller (the one selling, such as advertising agencies and publishers).
When conducting these types of campaigns, it is important to remember that they allow you to reach only potential customers who match the chosen target for that specific advertisement.
Programmatic Buying Strategies
The purchase of advertising spaces is carried out through an auction mechanism where bids are placed in time real.
In practice, advertising is assigned to the advertiser who offers the highest bid.
The advertisement is evaluated impression by impression, through a technological platform that facilitates real-time buying and selling of inventory from multiple advertising networks.
However, there are also various forms of negotiation between buyer and seller:
- Open auction: open to all;
- Private auction: closed number auction;
- Programmatic deal: forms of direct agreements between buyer and seller.
When the negotiation takes place in private environments, the advertisers benefit from purchasing a specific ad impression, for which the price threshold has already been established beforehand with the publisher.
When, on the other hand, there is a programmatic deal, the advertiser can purchase, based on a pre-negotiated fixed price, a share of premium inventory directly from the publisher without the assistance of automated platforms.
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