Program(matic) Advertising

There is a fascinating change happening in digital media ad buying and selling space. The lengthy processes of request for proposals (RPF), human negotiations, and manual insertion of orders have been put aside by the programmatic advertising. Display advertisements facilitate website monetization, which is one of the sources of revenue in the digital world today. The automated buying and selling of online advertising space run by ad exchanges are called programmatic advertising where the advertisers look for ad space on the internet and the publishers sell their digital space. Programmatic advertising uses algorithmic software that handles the sale and placement of digital ad impressions via ad exchange platforms instantaneously. It offers a smarter, faster alternative to manual digital advertising. It improves the efficiency of the system and there are no such issues of unsold inventories (space).

The three important sections to note in programmatic advertising are SSP, DSP, and Ad exchange platforms. A supply-side platform (SSP) is an AdTech platform to decide on available ad space on their websites and mobile apps automatically and is efficient in space management. This monetizes their website and mobile apps by reflecting display, video, and native ads.

Source: smartinsights.com

Demand-side platforms (DSP) are helping the advertisers (brands) and the ad agencies run online media campaigns. It provides wider options to campaigns and the use of different media channels. However, they need to connect to other advertising-technology (AdTech) platforms to purchase the available ad space (inventory) from publishers to achieve this. There are options for the parties on Real-Time Bidding, Private Market place, and Programmatic Direct. Google Ads is a type of DSP, but it’s only limited to Google’s inventory.

The usage of programmatic advertising is growing, 88 percent of all the display marketing is programmatic advertising in the US in 2021. The market share for the Indian context now is 60:40 between direct and programmatic advertising due to its effectiveness in reach and scale. And, it is a boost for marketers to create brand awareness among high-volume audiences.

Dr.K.G.Hemalatha
Professor & HOD
DSCE-MBA

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