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Programmatic advertising is now being used to sell adspace for CTV, digital radio and digital out of home (DOOH). When a person clicks on a website, the site’s owner uses a Supply-Side Platform (SSP) to notify one or multiple Ad-Exchanges to put the adspace up for auction. How does programmatic advertising work?
According to Statista, global programmatic advertising spending is expected to reach USD 724 billion by 2026. A DMP collects data about a publisher’s visitors, creates audiences, and then syncs them with a DSP, allowing advertisers to target their audiences across different websites. The DSP market exclusively was valued at $20.77
trillion by 2026 from $6.5 And the amount of money companies spend on digital ads is projected to hit almost $680 billion in 2023, a rise of 10.5% An ad exchange is an online marketplace where advertisers buy digital ad inventory from publishers, often through real-time bidding (RTB) auctions. trillion in 2023.
Demand-Side Platforms (DSPs): Advertisers use DSPs to help them decide which ad impressions to purchase and how much to bid on them, based on a variety of factors such as the sites they appear on, the previous behavior of the user, and the context of the site or page. Why is this important for business owners and entrepreneurs to understand?
Rise of Programmatic Advertising (2010-2015) The rise of programmatic advertising marked a paradigm shift in the advertising technology industry, ushering in automation for the buying and selling of ad inventory. Real-time bidding (RTB) emerged as a revolutionary concept, allowing advertisers to bid for adspace in real time.
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