Programmatic Advertising 101: An Introduction to the Industry Jargon



What is Programmatic?


The word Programmatic has been around for years but it was only recently when the world of marketing embraced it. The boom of big data and artificial intelligence helped programmatic make its way to the enterprise’s marketing plan. For instance, programmatic comprise 36% of the digital marketing spend in APAC and is seeing growth year on year.

When people think about programmatic, they usually think it has something to do with automating the buying process, thus removing human effort in buying ads. Although not inaccurate, there is more to programmatic than automation. This is what makes this technology amazing. Programmatic is shifting the mindset of advertisers from buying time slots, which is the concept of traditional advertising, to buying target audiences, instead.


SSP + DSP + Ad Exchange = Programmatic Trading


Although it seems like we’re speaking in codes, the above formula actually shows the important players in a programmatic ecosystem. The jargon can get a little overwhelming at times, so with this article, we tried to break it all down so you can better understand each.


Demand Side Platform (DSP)


A DSP is a platform used by ad agencies and brands to buy ads and other media. This technology connects the buyer and the ad exchange so that the buyer can see all their programmatic inventory in one interface.


Supply Side Platform (SSP)


An SSP allows online publishers (app and digital media owners) to manage their own space inventory. In simple terms, the supply side refers to the inventory of advertising space together with the price the publisher wants to sell it for.


Ad Exchange


Connecting both DSP and SSP is the ad exchange. An Ad Exchange auctions ad inventory made available by the SSP. The inventory will be auctioned once the inventory available matches the criteria set by DSPs. Criteria may include audience characteristics, location, and other purchase options. AlgoriX is an AI-powered mobile exchange connecting the best publishers and DSPs in the mobile industry.


Real-Time Bidding (RTB)


RTB is a type of programmatic technology that automates the purchase and placement of ads in real-time. As mentioned, inventories are auctioned based on the buyer’s criteria. The process may sound long and complicated, but these decisions happen in a millisecond.


So Why Programmatic?


Programmatic removes the guessing game in advertising. Marketers no longer need to drop a mass message hoping someone would relate. Today’s advertising is all about personalization by using triggers that are gathered from the customer’s online behavior. With programmatic, ad quality has never been better than before.



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AlgoriX uses RTB to help DSPs reach millions of app users supplied by various high-quality SSPs in the platform. AlgoriX’s supply optimization is powered by Artificial Intelligence (AI) and allows you to target your desired customer profile precisely. To learn more about how Algorix can help your brand, visit our website.

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