Programmatic advertising is a dynamic system of buying and selling a virtual ad unit across a wide variety of sites. This ad unit can include any kind of advertising (text, image, video, audio, pop-up, banner), and it can be purchased in bulk for a single price. The term 'Programmatic' has come to refer to the entire process by which advertising units are sold to advertisers. Programmatic advertising means the act of selling or purchasing an ad unit by using a web-based system, or by using the client's site (or a third party service provider).
Programmatic advertising (also called Programmatic Buying or Programmatic Selling) is a dynamic process of purchasing and selling of an ad unit across a variety of websites with varying user-experience and preferences. It involves the use of multiple-sourced, real-time data including formulas, algorithms, and systems to automate the delivery of relevant, targeted, personalised and highly relevant ads to users as they surf and interact on these sites. The main objective of programmatic advertising is to create highly targeted traffic that is highly relevant to the content and interests of the users browsing those sites. In other words, the primary objective of this advertising is to convert visitors into customers or clients - the only problem being that many advertisers do not know how to properly design, measure and track these ads.
Programmatic advertising is done through several different methods including pay per click advertising, banner advertising, web advertising, and network marketing. The most common and simplest form of programmatic advertising is pay per click advertising. This method requires that an advertiser pay to place ads on relevant web pages. Pay per click advertisements are displayed on the web page of the advertiser and are linked to the relevant web page. When a visitor visits a page containing a Pay Per Click advertisement and clicks on one of the links, the advertiser pays the advertiser's advertiser.
Web advertising includes various forms of media and is normally done via online directories and search engines. This method involves links to web sites on the internet. These links are made to be visible to search engines and to generate traffic that is most likely to be relevant to the advertiser's website. Web advertisements often contain sponsored text or images or banners that are placed on other sites that are relevant to the advertisers' products and services. They can also include banners on social networking sites that are related to the advertisers' websites.
Banner advertising is the practice of displaying banner ads on a web page's resource box. It has become a very popular form of programmatic advertising. Banner ads are created by creating a simple HTML code that generates banners with links to websites and their products or services. Once on the internet, the banner's link will appear on relevant web pages whenever someone clicks on the banner.
Web advertising is a technique used by companies to advertise their products or services on other websites, including blogs. These advertisements are placed in web pages and on other websites that are related to the target website for the purpose of generating traffic to their website.
Find out more details in relation to this topic here: https://en.wikipedia.org/wiki/Digital_display_advertising.