What is the definition of programmatic advertising?

Programmatic advertising is defined as the automated buying and selling of online advertising space. This approach utilizes technology and algorithms to streamline the ad purchasing process, allowing marketers to buy digital advertising inventory in real time, often through ad exchanges. The key advantage of programmatic advertising lies in its efficiency and effectiveness, as it enables advertisers to target specific audiences with precision and optimize their campaigns dynamically based on performance data.

In contrast, manual buying and selling of ad space involves human negotiations and contracts, which can be time-consuming and less efficient. Traditional online advertising methods do not typically incorporate automation or data-driven decisions at the same scale or speed as programmatic approaches. Additionally, programmatic advertising is distinct from organic social media marketing strategies, which focus on unpaid methods to engage audiences rather than transactions involving ad space.