Programmatic advertising

Programmatic advertising is a term used in digital marketing that describes the fast-growing computer-based automated buying, selling, placement, and optimization of digital advertising. In contrast with traditional advertising, programmatic ad buying involves the use of non-human software machines to purchase digital ads. Programmatic advertising technology ensures efficiency and reduced advertising cost.

The most common types of programmatic advertising include digital videos, mobile display, social and native ads. In the United States, programmatic accounts for over 75 percent of total digital ad expenditures and display programmatic spending in the country is projected to reach over 45 million U.S. dollars by 2019 compared to the 2016 spending cost of 25.5 million U.S. dollars. Looking closely at specific formats in 2016, programmatic accounted for 56 percent of spending on digital video advertising in the United States. Mobile programmatic display spending is said to grow from 17.99 billion U.S dollars in 2016 to over 36 billion by the end of 2019.

As of March 2016, marketers in the United States were most interested in programmatic purchasing of national cable networks inventory. In a 2016 survey, Californian-based TubeMogul, was considered the leading company in programmatic television. Other serious players in the area of programmatic TV include: Videology, Yume, Google Doubleclick, and Rocketfuel. The leading methods of purchasing ads programmatically are though demand-side platforms, trading desk or via private marketplaces. All the while, fraud and viewability concerns are one of the major barriers to programmatic adoption for buyers and marketers. These concerns are not ungrounded, as it was calculated that U.S. marketers lost 7.95 billion U.S. dollars to ad fraud in 2016 alone. The losses are believed to grow further to 15.09 billion by the end of 2021.



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