A key aspect of programmatic advertising is real-time bidding. Pairing advertiser preferences with available ad space allows companies to show their ads to the most relevant internet users efficiently. With numerous websites to advertise on and many companies looking to do so, having a strategy that optimizes ad placement is crucial. This enables more personalized strategies on a large scale.
Advertisers use demand-side platforms (DSP) to manage their campaigns, specifying parameters that determine who sees the ad and when. Conversely, website owners use supply-side platforms (SSP) to control what’s shown on their sites. In the brief time it takes a browser to load a webpage, the SSP announces an available ad space. DSPs then match advertisers’ preferences to present relevant ads. The highest bidding advertiser for the ad space and user in question gets their ad displayed.