Programmatic Advertising is increasingly being adopted across networks, advertising channels and platforms. With the contributions of mobile-heavy players like Facebook and Google, e-Marketers estimated about 60% spend while actually recording over 53% of display ad dollars spend programmatically in year 2015. Simply put, Programmatic Advertising is all about using newly available data to serve ads to more precisely targeted audiences. According to Business Insider, in recent years, programmatic advertising has quickly grown to a $15 billion industry today. This represents over 53% of all digital advertising in 2015, and forecasts suggest growth of 65% by 2020.
What is Programmatic Advertising?
Programmatic advertising is exactly what it sounds like. It is an automated buying and selling of digital advertising through centralised computer-driven ad exchanges and related databases and management platforms. It is designed to largely replace the old-school human powered aspects to buying and selling advertising through agencies and ad networks, with the goal of driving more efficiency and transparency to both advertisers and publishers. Advertisements can run the full gamut, including digital display, video, mobile, social or other ad creatives and placements.
Who are the key players in the programmatic ecosystem?
At the centre of the ecosystem are the ad exchanges (like DoubleClick, App Nexus, Rubicon, PubMatic, OpenX, Mopub, Smaato and AdTech). These are platforms where advertisers can set up ad campaigns to buy impressions and publishers can offer up inventory to be sold. This computer-driven system replaces the need for human driven ad networks or sales teams.
Wrapping around the ad exchanges are three key players:
- Data management platforms, or DMPs (like Adobe, X Plus One, Blue Kai, Aggregate Knowledge Knotice, Core Audience and nPario), who collect and store all the internet user data in one central database
- Demand Side Platforms, or DSPs (like DoubleClick, MediaMath, DataXu, Rocketfuel, App Nexus and Marin Software), who enable marketers to bid on and buy ads from ad exchanges, including all campaign analytics
- Supply Side Platforms, or SSPs (like OpenX, PubMatic, Rubicon Project, App Nexus, and Right Media), who enable publishers to offer inventory for sale through the ad exchanges, including all revenue analytics. In addition, the huge sites like Google, Yahoo, AOL, Microsoft and Facebook have set up their own programmatic ecosystems, as well.
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