In programmatic advertising, what do you purchase?

In programmatic advertising, purchasing impressions individually with a dynamic Cost Per Mille (CPM) allows advertisers to buy ad space in real-time based on demand and availability. This model provides flexibility and efficiency, as advertisers can adjust their bidding strategy based on performance and competition for impressions. By purchasing impressions in this way, advertisers can optimize their ad spend, targeting specific audiences while responding to changing market conditions.

Additionally, this approach aligns well with the core principles of programmatic advertising—automated buying, real-time bidding, and data-driven strategies. The dynamic nature of CPM means that advertisers only pay for what they value and can leverage real-time data to enhance their targeting and campaign effectiveness. This is pivotal for maximizing return on investment (ROI) in digital advertising.

In contrast, fixed CPM contracts and bundled packages do not offer the same level of flexibility and responsiveness as dynamic CPM. Fixed contracts can lock advertisers into a set rate regardless of market changes, while bundled packages might not allow for the targeting precision available in a programmatic environment. Buying only data insights, while valuable, does not equate to the purchase of impressions necessary for executing an advertising campaign. Hence, the choice of purchasing impressions individually with a dynamic CPM accurately reflects the operational dynamics of programmatic advertising