How Does Programmatic Advertising Work?

When someone or a visitor, visits a publisher's website that shows ads, the website asks a Supply-side platform (SSP) (publishers use to sell their ad inventory (ad spaces)) for help to sell ad space. The SSP is like a helper for the website owner, aiming to get the best value for showing ads on their space. It organizes a quick competition (auction) among advertisers to decide who gets to show their ads.

Now, the Demand-Side Platform (DSP) is like the advertiser's assistant. It looks at the ad request and uses data to decide how much the advertiser should bid to be the first to show the ad. This whole process happens really fast, in just 100 milliseconds through ad exchange where the buying and selling of digital ads take place in real time. They call it real-time bidding.

Once the bidding is done, and a winner is chosen, the ad is sent back to the website. And here's the cool part – this happens every time whenever someone comes to the website or hits refresh. It's like a little auction dance that goes on behind the scenes to make sure the right ads show up for the right people.

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