July 20, 2017 | Mobile Advertising | by Alexian Chiavegato

Programmatic advertising: what’s next for the technology?

Programmatic advertising is one of the fastest growing formats for buying and selling digital media, and for good reason: the streamlined approach digests huge amounts of data to determine where ads should be placed, at what time, and to which audiences. The automated format optimizes data in a highly targeted way, leading to improved results for brands and publishers. Programmatic cuts down on time and mitigates human error, making advertisements more effective and relevant to users.

Gone are the days when people would purchase ads from an online auction; automation has proven to be in high demand in the advertising industry with sales expected to reach $32 billion this year. The current state of programmatic advertising shows promise for the future, as long as the technology continues to improve and the industry adapts alongside it.

Challenges facing programmatic advertising

eMarketer estimates that four out of five digital ads will be programmatic this year. With this growth comes the need to improve upon the technology because programmatic advertising, while efficient, is not perfect. Issues like the inability to truly monitor where ads are being placed causes concern for brand safety, so brands will want more control over their content, which means creating algorithms that will allow advertisers to monitor the locations of their ads.

Programmatic advertising definitely simplifies the advertising process for brands and publishers, but it also needs to work for the consumer. Delivering faster load speeds on digital devices is key to offering a user-friendly experience and server-side header bidding will diminish load times by placing the heavy lifting on a remote server. Not only will this create a better overall user experience, but the improved page speed will help to optimize monetization by increasing the viewability of advertisements.

Better viewability of ads leads to more reliable data, so programmatic advertising must evolve to provide better metrics to measure campaign success and increase monetization. Understanding and monitoring the right KPIs is vital to assessing the results of a programmatic campaign, meaning that the automated technology should provide transparent metrics highlighting measures such as conversion and revenue.

A maturing technology

Programmatic advertising is still new in the grand scheme of advertising technology. Automation is working, but the details need to be worked out in order to address the issues and meet the needs of publishers and brands. Getting a firm grasp on programmatic advertising and the forecasted trends for the technology is vital to staying relevant and successful.