Which term refers to automatic buying and selling of online advertising using software and AI?

Which term refers to automatic buying and selling of online advertising using software and AI?

• A. Programmatic advertising
• B. Digital advertising
• C. Email platforms
• D. ERP

Answer: (A)

Automating the purchase of online ad space with software and AI is what this term captures. Programmatic advertising describes this process precisely: ad inventory is bought and sold automatically through platforms that use algorithms to bid for impressions in real time. Advertisers set goals and budgets, and the system evaluates available impressions, audience signals, and context, placing bids in milliseconds on ad exchanges. When the bid wins, the ad is served, and performance can be continually optimized with data. This differs from broader digital advertising, which covers many ways to run online ads but not necessarily the automated, real-time buying process. Email platforms are for sending and managing email campaigns, not buying ad space. ERP focuses on internal business processes like inventory and finance, not online advertising.

Automating the purchase of online ad space with software and AI is what this term captures. Programmatic advertising describes this process precisely: ad inventory is bought and sold automatically through platforms that use algorithms to bid for impressions in real time. Advertisers set goals and budgets, and the system evaluates available impressions, audience signals, and context, placing bids in milliseconds on ad exchanges. When the bid wins, the ad is served, and performance can be continually optimized with data.

This differs from broader digital advertising, which covers many ways to run online ads but not necessarily the automated, real-time buying process. Email platforms are for sending and managing email campaigns, not buying ad space. ERP focuses on internal business processes like inventory and finance, not online advertising.