ReDrew Innovations

If you are planning on building a career in the world of marketing, advertising, or digital publishing, understanding the basics of ad tech and programmatic advertising will have an advantageous impact on your career!

What Is Programmatic Advertising & AdTech

According to Clearcode a globally recognized AdTech software company, programmatic advertising is the process of automating the purchase, sale, delivery, and measurement of digital advertising campaigns via advertising technology (AdTech) platforms.

In layman’s terms, programmatic advertising is the automation of digital advertising campaigns through the use of technology (algorithms).

The technological platforms or software that are used to automate digital advertising campaigns are known as AdTech.

The main AdTech platforms or software according to Clearcode include:

Define “SSP” & “DSP”

As mentioned above, supply-side platforms (SSP) is an advertising technology platforms used by publishers to manage, sell and optimize their inventory (ad space). It is known as a supply-side platform because the publishers are the suppliers of the ad space.

On the other hand, a demand-side platform is an advertising technology platform that allows advertisers and ad agencies to buy different types of inventories (ad space). Yet again it is known as demand-side platforms because the advertisers are the ones who are looking to buy or “demand” advertising space.

Brands That Use Programmatic Advertising

To make a confusing topic clear, when I refer to a brand that uses programmatic advertising, I am referring to brands that automate the purchase of ad space to advertisers.

Netflix

On November 3, Netflix launched its new ad-supported plan. It will allow advertisers to run 15 to 30-second videos before and during programs, with a cap of four to five ads per hour according to Insider.

Netflix will allow advertisers to buy ad space through Xandr’s demand-side platform. Which is an AdTech platform that buys programmatic ads for advertisers or marketers.

Netflix partners, like Microsoft, will also be able to use data collected by the ad-supported plan for targeting within Netflix.  

StubHub

StubHub is a ticket marketplace and in 2014 StubHub decided to handle its programmatic advertising in-house as mentioned by DigiDay.

According to Lee Engel, StubHub’s head of programmatic advertising “As a business owner, we want to be in direct control of the marketing levers, to adapt as quickly as possible to changing business requirements. We can be really nimble because we’re not working through an intermediary”.

Since Engel joined the team in 2012, buying advertising from exchanges has proved much cheaper than through ad networks. In-house programmatic advertising has also been more cost-efficient through his small team.

However, it is to be noted that in-house programmatic advertising is not best for every brand. For Netflix and StubHub, it works well because those brands are strongly rooted in data and technology.  

Challenges & Opportunities For Programmatic Advertisers In 2022?

Challenges

The biggest barrier to programmatic advertising in 2022 is the lack of knowledge and visibility around it.

According to Bannerflow, a creative management platform, nearly 50% of the people who use programmatic advertising don’t think they understand it. So, if there is a lack of confidence in this field even among the people who use it, then there is going to be a significant divide among newcomers.

Opportunity

In 2022 Google announced that it will be retiring its Google Universal Analytics Platform along with cookies. This will stop marketers from using third-party cookies on Chrome browsers, making GA4 The Future of Web Analytics.

The removal of cookies will push brands to bridge the gap in analytics and in-house programmatic could be the answer. As specified by Claravine a data platform, if brands shift to in-house programmatic advertising they will have greater control over cost, data, and intellectual property.

The removal of cookies on Chrome browsers also allows for the opportunity to shrink the knowledge gap in programmatic advertising as brands will be looking for other ways to bridge the analytics lost from third-party cookies.

Conclusion

Programmatic advertising has been around for 15 years and will continue to expand at a strong rate. As evident by big brands like Netflix and StubHub creating in-house departments. Gaining basic knowledge of programmatic advertising and AdTech will provide great differentiation between you and other entry-level marketers.