The Programmatic Advertising Future

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“DSPs, SSPs, DMPs, ad exchanges and ad servers are all components of the programmatic technology “stack” – and these technology platforms iterate rapidly with new features of increasing sophistication.”
Note: Source for this text is at the bottom of this post. 

“Real-time bidding sounds high-tech but straightforward. When a consumer visits a website, his browser communicates with an ad server. The server sends a message to an exchange to provide data about that user, such as his IP address, his location and the website he is visiting. Potential ad buyers send their bids to the exchange. The highest one wins and an ad is served when the website loads. All this typically takes about 150 milliseconds.”

“Over the past 18 months real-time bidding has spread across the web. According to IDC, a research firm, around 20% of online display advertisements in America are now sold this way; by 2018 that figure is likely to rise to 50%. Online video and mobile ads, too, are increasingly traded in real time. “Ten years ago you would never have had the information technology cheap enough to do these transactions,” says Mike Driscoll, the boss of Metamarkets, an advertising-analytics platform.”

“A study by BCG, sponsored by Google, found that advanced behavioural targeting, which uses technology to reach specific users with the desired characteristics, helped advertisers increase their return on investment by 30-50%. One popular tactic is “retargeting”, which allows advertisers to look for people who have visited their website before and show them an ad related to an item they were looking for but did not buy.”

“Advertisers and publishers complain, not without cause, about a “technology tax”, claiming that 60-80% of ad spending is siphoned off by ad-tech firms which take advantage of the market’s opacity.”


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