How Programmatic Advertising is Transforming Mobile

Sep 29, 2016
By: Marissa Camilli

Mobile ads are now primarily served on digital devices using algorithmic-driven media buying and specialized software. This is a significant evolution from the first banner ad on mobile and from traditional advertising mediums, such as print, radio, and television. The speed at which digital advertising has evolved is astounding.

Programmatic advertising for mobile has taken off and is a frequent topic in advertising trade journals and on social media. According to a study by eMarketer, programmatic ad spending will reach $25.23 billion this year and will represent 73% of all display ad spending. Programmatic advertising offers the promise of maximizing value by using data science to make intelligent media buying decisions in microseconds.

What is Programmatic Advertising?

Mobile programmatic advertising uses software to enable the automatic buying and selling of desired mobile ad inventory. Previous to programmatic advertising automation, marketers needed to place a request for proposal process (RFP), have an in-person negotiation, and use the insertion order system.

Mobile advertisers have now gained access to a broad selection of advertising inventory accessed through Demand Side Platforms, or DSP’s.  DSP’s are platforms designed for advertisers that give access to vast amounts of inventory through their connection with Ad Exchanges, or large networks of mobile publishers that have opened up their content to programmatic media buying.

Programmatic advertising makes it easy to:

Target and buy media for specific geographies and audience segments;

Buy directly from a single publisher or buy across a selection of publishers

Make intelligent media buying decisions on an impression-by-impression basis

Programmatic advertising manages to save money and reduce spend as automation has replaced many manual processes. In addition, it reduces implementation costs and makes it easy to find the best price in mobile ad inventory over a wide range of publishers.

How Does Programmatic Advertising Work?

Marketers in businesses large and small can find a mobile programmatic advertising solution that works for their needs and automate much of the tedious and costly processes previously required in this area of digital display advertising. Those interested in programmatic advertising benefit from a tool that can select the best purchasing opportunities from millions of ads for sale every second.

The easiest way to begin using programmatic advertising is to sign up with a DSP such as Digital Turbine.  These platforms will allow you to select targeting criteria, monitor and manage your budgets, and keep track of your ad placement configurations.

Why Has Programmatic Advertising Become Popular?

Programmatic Advertising grew in popularity in 2015 and is set to flourish with marketers and companies as part of their digital marketing efforts in 2016. It has the potential to reduce spend and offers an innovative approach for engaging target markets. The UK is currently considered the most advanced market when it comes to programmatic buying and programmatic spend in 2016 and is expected to contribute to over 50 percent of display advertising spending.

From all that is being seen in the US and abroad, it appears that programmatic advertising has yet to reach its peak and organizations are eager to learn more about this trend that not only reduces spend but can show a measurable increase of ROI. Follow us at Digital Turbine to keep up with the latest developments on programmatic advertising and digital marketing on mobile.

Marissa Camilli
By Marissa Camilli
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