What is programmatic advertising?

Study for the AI-Powered Performance Ads Test. Prepare with interactive flashcards and multiple choice questions, each with hints and explanations. Get ready for success!

Programmatic advertising refers to the automated process of buying and selling online advertising space using AI technology and data analytics. This approach leverages algorithms to purchase ads in real-time, allowing advertisers to target specific audiences more effectively and efficiently based on various data points, such as user behavior and demographics.

By utilizing programmatic advertising, advertisers can streamline the ad buying process and optimize their campaigns, ensuring that ads reach the right audience at the right time without the need for manual intervention. This not only saves time and resources but also enhances the precision of ad spending, maximizing return on investment.

In contrast, the other choices present methods or strategies that lack the automated, data-driven capabilities inherent to programmatic advertising. The manual approach mentioned in the first option is labor-intensive and less efficient than programmatic methods. The focus on organic reach in another option suggests a reliance on non-paid methods for audience engagement, which does not utilize the programmatic framework. Lastly, the creation of viral content is centered on creativity and social engagement, rather than the technical automation that defines programmatic advertising.

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