Evolution of Digital Advertisement Buying- Selling
The main pillars of Traditional Buying:
1. Human Effort and Planning
2. Bulk Buying and Generic Targeting
3. Fixed Pricing
4. Guaranteed Inventory
Programmatic Buying evolved to reduce the human intervention, with the rise of technology.
RTB takes a new step as described:
Problem Statement 1:
If Programmatic / RTB gives higher ROI, why aren’t advertisers shifting all their dollars to Programmatic / RTB?
Industry reaction to Programmatic Buying- Selling of Digital Advertisements:
With the advertising keeping its focus more on the end consumer – tapping into the right needs of the right users at the right time has become the need of the hour. As explained in the …show more content…
Programmatic auction technology provides a marketplace where buyers have a true valuation of sellers’ inventories. It creates a fair and efficient marketplace. It allows advertisers to buy inventories of targeted users instead of targeting all users of a site.
Programmatic started as a way to trade remnant inventory, however it used more and more for trading high value inventory as well. As its importance is increasing, there is a need for more transparency in the trading process. Let’s see how non-transparency appears in the system by analyzing how an ad dollar is distributed between publishers, advertisers and the layers in between. (Source: AOL Networks)
Here, an advertiser thinks that he is buying an inventory worth $1, however he might be getting an actual inventory which publisher values at $.25 - $.45. The inventory at publisher’s end is bundled with extra charges, which are hidden from both publishers and advertisers. The layers in between advertisers and publishers, which include DSPs, SSPs and other agencies charges their own fees which is not visible to any of the participating party in either side. This leads to incorrect valuation of inventory by both publishers and advertisers. This was not the case in direct selling. Both the supplier and buyer have a fair idea of the valuation of the inventory and any fees associated with the transaction. At least this level of transparency is expected from
The main pillars of Traditional Buying:
1. Human Effort and Planning
2. Bulk Buying and Generic Targeting
3. Fixed Pricing
4. Guaranteed Inventory
Programmatic Buying evolved to reduce the human intervention, with the rise of technology.
RTB takes a new step as described:
Problem Statement 1:
If Programmatic / RTB gives higher ROI, why aren’t advertisers shifting all their dollars to Programmatic / RTB?
Industry reaction to Programmatic Buying- Selling of Digital Advertisements:
With the advertising keeping its focus more on the end consumer – tapping into the right needs of the right users at the right time has become the need of the hour. As explained in the …show more content…
Programmatic auction technology provides a marketplace where buyers have a true valuation of sellers’ inventories. It creates a fair and efficient marketplace. It allows advertisers to buy inventories of targeted users instead of targeting all users of a site.
Programmatic started as a way to trade remnant inventory, however it used more and more for trading high value inventory as well. As its importance is increasing, there is a need for more transparency in the trading process. Let’s see how non-transparency appears in the system by analyzing how an ad dollar is distributed between publishers, advertisers and the layers in between. (Source: AOL Networks)
Here, an advertiser thinks that he is buying an inventory worth $1, however he might be getting an actual inventory which publisher values at $.25 - $.45. The inventory at publisher’s end is bundled with extra charges, which are hidden from both publishers and advertisers. The layers in between advertisers and publishers, which include DSPs, SSPs and other agencies charges their own fees which is not visible to any of the participating party in either side. This leads to incorrect valuation of inventory by both publishers and advertisers. This was not the case in direct selling. Both the supplier and buyer have a fair idea of the valuation of the inventory and any fees associated with the transaction. At least this level of transparency is expected from