This article discusses Programmatic Advertising, outlining the basics about what it is and how it works. In a future post, we’ll dive into current trends and the future opportunities coming together to shape the future of programmatic.
Programmatic advertising’s effectiveness and efficiency has brought explosive growth, with global spending projected to reach $147 billion by 2023, accounting for 90% of digital display ad dollars.
What is Programmatic Advertising?
Let’s start with the basics. Programmatic advertising uses automated technology to manage the media buying and selling process between advertisers and publishers. Programmatic advertising comes in a number of formats, from guaranteed media buys set at a fixed prices to “real-time” auctions. The thing that makes it programmatic is the technology that facilitates the transaction.
Programmatic advertising has grown significantly in the past decade because:
Programmatic advertising’s effectiveness and efficiency has brought explosive growth, with global spending projected to reach $147 billion by 2023, accounting for 90% of digital display ad dollars.
How does Programmatic Advertising Work?
Before the rise of programmatic, advertisers and publishers used manual processes that were often long and tedious, involving rounds of negotiations, bidding, and contracts. This process was both time-consuming and inefficient, and often led to wasted ad spend- presenting universal pain-points for larger enterprises and significant barriers to entry for SMBs and mid-market players.
Programmatic advertising solves for a number of manual problems in the old process:
Programmatic advertising has empowered advertisers and publishers of all sizes to easily automate these time-consuming tasks, freeing bandwidth so they can concentrate on strategic goals and initiatives that drive their businesses.
Here is the typical journey in the programmatic media buying flow:
Programmatic advertising has become an essential strategy for advertisers looking to reach their target audiences efficiently and cost-effectively. But with the increased complexity involved in managing new selling processes, media companies are looking to modernize their operations with tools — such as Operative’s AOS – in order to compete effectively into the future. With AOS, they can sell more effectively and simplify ad operations – both of which are needed to power modern media workflows. And with Operative’s STAQ offering, many of the world’s leading media companies gain valuable data-driven insights into their programmatic business. Making the combined software offering a powerful combination to succeed in a programmatic world.
