What are programmatic advertising and ad tech?
What is Programmatic Advertising??
As Search Engine Journal defines it, programmatic advertising is known for using automated technology and algorithmic tools for media buying. Whether that be the overall outcome of how advertisements are bought and sold in the overall space of the advertisement.
What is Ad-tech??
Amazon Ads describes ad tech using overall tools and software advertisers use to reach audiences and deliver and measure digital advertising campaigns. As buying and selling digital ads became more complex, ad tech emerged to streamline the process. Common ad-tech tools, such as demand-side platforms, are technologies that enable advertisers to buy impressions and select audiences across many publisher sites. Now, ad tech enables advertisers and agencies to manage integrated campaigns effectively. It also allows brands to make the best use of their budget and help maximize their return on investment (ROI) in digital advertising. In conclusion, ad tech uses many tools and resources to decipher how effective a specific advertisement is on a specific audience and how to improve it to increase the return on investment.?
What is SSP?
A supply-side platform (SSP) is a software system that allows publishers to offer their available inventory to ad exchanges and demand-side platforms (DSP)s. In this context, the supply side refers to the supply of advertising space, which is what the publisher is offering. The publisher is typically a website owner but could also be an app developer.
Publift defines an SSP as a supply-side platform (SSP), or sell-side platform, which is a form of an ad tech platform used to coordinate and manage the supply and distribution of ad inventories. SSPs help digital media owners and publishers sell ad space.
What is a DSP?
DSP is defined by Mountains as an advertising tool used on the buying side, also known as the advertiser’s side, of the transaction when buying advertising impressions. This software allows advertisers to buy media placements across mediums. Some of the more common ways these are purchased are through the use of display, video, and mobile.?
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How does programmatic advertising support website publishers?
Programmatic advertising helps support website publishers in many ways. The first one is that programmatic advertising helps save time for website publishers. Since it’s optimizing the overall process to be as efficient and effective as possible it saves time for the publishers. Programmatic advertising also helps target the right users for increased ad effectiveness. When people are targeted for the advertisements that they want to see or are in the target market of a specific advertisement it will help the publishers be more effective. Finally, it increases the return on investment for the publisher's advertisements that they are sending out. Since the advertisements are more effective, it is bound to increase the overall return on investment of the advertisement.
What are the biggest challenges for advertisers that use programmatic advertising?
One of the biggest challenges for advertisers is ad fraud. Bannerflow defines ad fraud as when these clicks and impressions come from a bot, rather than a human. This is the biggest problem programmatic advertising faces. It’s responsible for huge chunks of the advertising budget resulting in no real results to show for it.
Another challenge that advertisers face is inventory quality. Bannerflow talks about how eMarketer predicts that programmatic ads will account for 83% of all display buys, which is a staggering figure. This brings its own issues into the mix though. We’ve already discovered that in spite of the sheer amount spent, half of those using it don’t understand it. Meaning advertisers in the future will have to be more creative in their ideas on how to target their market and make sure it is up to standards of quality with all of their competitors.?
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