[Tech Talks] Benefits of Programmatic Advertising and the Programmatic Supply Chain
Updated: Aug 31, 2020
As the marketing and advertising world becomes more and more complex with the introduction of newer technologies and tools, the fundamentals of what we’re trying to accomplish remain unchanged: connecting the right people with the right message at the right time.
In the earlier days, the transactions were simpler- However, this seemingly simple process lacked scalability, efficiencies, and required lots of manual inputs.
Programmatic advertising is simply a tool that utilises technology to automate the buying process so that advertisers can accomplish buying and optimising media more efficiently and effectively.
What are the benefits of programmatic advertising?
On the Sell Side:
Monetisation: Publishers realised a great portion of their available inventory went unsold.
Efficiency: Automation is hitting all businesses and publishers aren’t an exception, investing in a larger sales force and spending great amounts of time managing contracts, ad tags and invoicing. Programmatic helps to make this more seamless.
Data: Publishers have pushed contextual relevance but technology and automation allow their actual data to be monetised and valued.
Diversification: By leveraging on the efficiencies and ease of programmatic, publishers can make their inventory and data available to a much wider range of clients.
On the Buy Side:
Monetisation: Allowed advertisers to control and purchase the inventory, also opening up a long tail lower quality but cheaper inventory.
Efficiency: Simply put, programmatic advertising ensures advertisers can speed up and control the buying process.
Data: Advertisers now have a wealth of data mainly first and third-party data, allowing advertisers to draw on insights and trying to pinpoint the consumer. Programmatic also means that the campaign and learning can be adjusted accordingly while a campaign is running, improving its effectiveness.
Diversification: Opens up the opportunity to buy a wider inventory pool, more excitingly as this space grows we are starting to see advertisers buy traditional mediums digitally, the likes of DOOH and OTT.
The programmatic supply chain
The programmatic supply chain mainly consists of the buy-side and the sell-side, with the exchange in the middle.
Players in the supply chain:
Advertiser and ad servers
As programmatic continues to grow, brands and agencies invest in ad verification to keep continuing to invest digital with confidence.
Programmatic has seen an evolution, as media channels and platforms become more connected and continue to evolve such as CTV, DOOH, Podcasts, etc. and technology will continue to improve the way advertisers connect with consumers.
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