Programmatic advertising is the next level above targeted advertisement.
With targeted ads online, your online profile gets associated with certain traits, and advertisers limit their ads to only show to certain traits (i.e., show luxury car ads to users who likely make more than $80,000/yr).
Programmatic advertising takes that one further. When a user is in a state where an ad is requested, the advertising server polls a bunch of bots for each advertising company with your traits and asks them how much they want to pay for an ad spot on you. The bots have to take the input and calculate how much they think you’re worth for an ad, and then respond. Whoever wants to pay the most gets to advertise to you, and their bill gets incremented.
Essentially, there’s a real time auction for the advertisement to you every single time one loads.
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