What is programmatic advertising?

Prepare for the IAB Digital Advertising Operations Certification (DAOC) Test. Utilize flashcards and multiple choice questions with explanations to enhance your readiness. Ensure success on your exam!

Programmatic advertising is defined as the automated buying and selling of online advertising space. This approach leverages technology to streamline the ad placement process, using algorithms and data insights to make real-time decisions about which ads to serve and to whom.

This method enhances efficiency by minimizing the need for manual negotiations and allowing advertisers to target specific audiences with precision based on a variety of criteria such as behavior, interests, and demographic information. It operates on a marketplace model where inventory is traded in real time, which can lead to faster transactions and better ad placement efficiency compared to traditional methods.

The other options describe processes or concepts that do not encompass the full scope of programmatic advertising. Manual negotiations refer to a more traditional method of securing ad placements, organic content marketing is focused on creating and distributing valuable content without direct ad placements, and while targeting based on user demographics is a benefit of programmatic advertising, it is not solely limited to that aspect. Programmatic advertising encompasses a broader strategy that includes automation and data-driven decision-making for ad transactions.

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