The secret behind a new industry -- Pros and Cons of Programmatic Advertising

by Ruoyi Zhou, from AdPlus one-step service team

Advantage:

Programmatic advertising can avoid some of the problems in advertising, and it is good for media owners and advertisers:

From the perspective of the media owner:

Improve the efficiency of advertising transactions and expand the scale of transactions.

It can increase the filling rate of long-tail traffic and sell the differentiated pricing of advertisements to advertisers. Essentially, it can sell the advertising space more fully and get more advertising income.

The top 30 media owners in the world: https://www.marketing-interactive.com/the-top-30-media-owners-in-the-world

From the advertiser's perspective:

Precise marketing: based on the purchase of the audience, the DSP platform will have a lot of tags or the underlying docking DMP, on the DMP can set a lot of targeted delivery tags, advertisers can choose the corresponding tags for delivery.

Automated advertising delivery to improve efficiency: Programmatic advertising is the automation of digital advertising delivery, which can greatly improve the efficiency of advertising transactions and save labor costs. Cross-media/terminal delivery: this is compared with the traditional. Traditionally, if you sign a contract with a media, then your ad will only appear on A media, C media does not sign, and your ad will not appear, but Programmatic advertising, as long as you sign the contract with the demand side, that is, the DSP, your ads may appear on the websites of A and B, which can be placed across media and also across terminals. Those who used to sign contracts with the media owners one by one are not required now, which is also an improvement in efficiency.

Timely optimization of advertising effects: Traditionally, data is only available to media owners. Data after programmatic advertising is fed back in time. Advertisers can optimize ads at any time during the process of advertising. Therefore, it's beneficial to advertisers, but this is not a unique advantage of programmatic advertising, it can be said that all online advertising has.

Disadvantages:

From the development process of programmatic advertising, we can know that programmatic advertising is currently in a shuffling period, and development is difficult. There are many problems in this way, mainly in these aspects:

Industry chain becomes longer

Ad Exchange has a lot of remaining traffic

The reason for the emergence of Ad Exchange is because of the various problems brought about by the increased complexity of the Ad Network ecosystem, which in turn prompted the emergence of Ad Exchange, but the traffic providers and media owners have not changed, which is now open the transaction market is mainly the traffic of small and medium-sized website owners, and there are various gray areas or residual traffic of large media.

It can be seen that the public trading market is all residual traffic. There is a sentence: programmatic advertising is to pick up the baby in the trash, and the discount strength given by this part can be as high as 60%.

The media owners follow the principle of selling as much as possible. Because there are many small and medium-sized media, there is a lot of traffic, but the quality is worrying, and even some Ad Networks have higher traffic quality than DSP, so you should be cautious when choosing this method.

7 Winning Tips to Make your Ad Inventory Attractive to Ad Exchange Buyers: https://www.monetizemore.com/blog/7-winning-tips-make-ad-inventory-attractive-ad-exchange-buyers/

Overall, although programmatic advertising has various problems, and these problems are unsolvable in the short term and it is difficult to develop, it still benefit a lot.

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Contact Information: zhou.ruoyi@hotmail.com

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