Understanding Programmatic Advertising, Its Trends, and The Ad Tech Leaders

For decades, advertising on the Internet has been rather disparate. Publishers chose to offer their own ad spots directly to advertisers or inserted ad real estate for ad marketplaces to bid and buy them. On Martech Zone, we utilize our ad real estate like this… utilizing Google Adsense to monetize the articles and pages with relevant ads as well as inserting direct links and display ads with affiliates and sponsors.

Advertisers used to manually manage their budgets, their bids, and research the appropriate publisher to engage and advertise. Publishers had to test and manage the marketplaces they wished to join. And, based on the size of their audience, they may or may not be approved for it. Systems advanced over the last decade, though. As bandwidth, computing power, and data efficiency vastly improved, the systems were better automated. Advertisers entered bid ranges and budgets, ad exchanges managed the inventory and winning bid, and publishers set the parameters for their ad real estate.

What is Programmatic Advertising?

The term Programmatic media (also known as programmatic marketing or programmatic advertising) encompasses an array of technologies that automate the buying, placement, and optimization of media inventory, in turn replacing human-based methods. In this process, supply and demand partners utilise automated systems and business rules to place advertisements in electronically targeted media inventory. It has been suggested that programmatic media is a fast-growing phenomenon in the global media and advertising industry.

Wikipedia

Programmatic Advertising Components

There are several parties involved in programmatic advertising:

Additionally, these platforms are often integrated for larger advertisers:

Programmatic advertising has come to age by incorporating machine learning and artificial intelligence (AI) to normalize and evaluate both the structured data associated with the target and the unstructured data associated with the publisher’s real estate to identify the optimal advertiser at the best possible bid without manual intervention and at real-time speeds.

What Are The Advantages of Programmatic Advertising?

Aside from the reduction in manpower necessary to negotiate and place ads, programmatic advertising is also beneficial because:

Programmatic Advertising Trends

There are several trends that are driving double-digit growth in the adoption of programmatic advertising:

What are the Top Programmatic Platforms for Advertisers?

According to Gartner, the top programmatic platforms in Ad Tech are.

Epom, a leading DSP, has created this insightful infographic, The Anatomy of Programmatic Advertising:

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