Programmatic advertising concept and working model
The history of Programmatic advertising starts little earlier, in the publishing process of ads are generally handled by Media buying Agencies (MBA), they buy ad impressions from various online ad placement channels, Programmatic advertising act as a glue between publisher and advertiser with the support of a agency, more precisely it can be called Media Buying agency with an Agency Trading desk, just like a share trading company with a share trading platform connecting and helping investors to the trading business. Agency Trading Desk (ATD) helps to identify and track different traffic sources.
Proper application of technology with logic and skill will be able to credit each conversion to a specific traffic source finally into conversion. Analytics will tell us where we should spend for getting right conversion. In this context the advertiser can be called buyer and publisher can be called as the seller.
The working model- Advertiser, Publisher and Agency
If you are running a business and you would like to promote your business through programmatic advertising, your primary goal is to reach your targeted audience and influence them to buy your product or services etc, here you are required to buy ad space through real time bidding.... here your role is as an advertiser. The goal of the Publisher is to build a web space that contained intriguing and relevant content to attract your right prospects, the advertiser utilise this publisher web space to reach their audience. Now the actual significance of agency trading desk comes up, they help advertisers to achieve their marketing goals and communicate with their target audience. It is the job of agency trading desk attached with media buying agencies that create media plans to target the right audiences and subsequently to communicate with the publishers that had access to those audiences.
However, the internet started to grow at an unprecedented rate, and a massive oversupply existed. It resulted in a lot of ad inventory left unsold and not being monetized. Publishers grew at a much quicker rate than advertisers and it was getting harder for advertisers to consume the supply available to them, so fraudulent tactics also start growing with the industry