Glossary/Programmatic/Programmatic advertising

What is programmatic advertising and how does it work?

How programmatic advertising works, who does what in the chain, and the deal types publishers use.

Written by Samhub with the help of AI·Updated 13 Oct 2026·3 min read
Definition

Programmatic advertising is the automated buying and selling of ad space through software, often impression by impression in real-time auctions.

How it works

01

A reader opens a page

The site sends an ad request.

02

The SSP offers the impression

With page and audience signals.

03

DSPs bid

On behalf of advertisers.

04

The best bid wins

And the ad is shown, in milliseconds.

Deal types

DealWho can buyPrice
Open auctionAny buyerAuction
Private marketplaceInvited buyersAuction with floor
Preferred dealOne buyerFixed
Programmatic guaranteedOne buyerFixed, guaranteed volume
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Where publishers win

Programmatic makes inventory easy to buy at scale, but anonymous inventory sells at market price. Audience data and deals are how publishers lift prices above the open auction.

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Frequently asked questions

RTB is one part of programmatic. Fixed-price deals are programmatic too.

Advertisers and agencies with DSPs, publishers with SSPs, and exchanges between them.

Most of it, in most markets.

Yes, through SSPs or ad networks.

Related terms

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