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Programmatic advertising is automated technology used to buy and sell advertising space online. The technology is used to target ads to specific audiences, enabling advertisers to deliver the right message at the right time.
Traditional digital advertising often consists of a manual process, purchasing advertising space, which could be time-consuming. Programmatic advertising automates the buying process by using data and machine learning to buy advertising space in real time, optimizing advertising campaigns.
Programmatic advertising offers several benefits, such as improved targeting and personalization, increased efficiency through automation, better use of data to reach the right audience and real-time analytics to quickly adjust campaigns. This leads to more relevant ads for the recipients.
A variety of ad formats are used in programmatic advertising, including display ads (banners), video ads, native ads, and mobile ads. Ads can also be interactive or with more advanced graphics, animation or video elements. The choice of format depends on the campaign's target group, design and purpose.
The success of a programmatic ad campaign is measured by various key performance indicators (KPIs), such as conversion rate, click-through rate (CTR), impressions, cost per click (CPC) and cost per thousand impressions (CPM). Advanced metrics can also include engagement rate, quality of traffic generated, and ROI (Return on Investment). Analysis of this data helps to understand how effectively the campaign reaches and engages the desired target group and how well it meets the set business goals.
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