Programmatic Ad Buying Dominates the Market

Technology experts have devised automated systems in which advertisers specify the type of ad, types of page locations and price they are willing to pay for an ad. The ads are then placed by a third party (an “exchange”) into vacant slots that match the advertiser’s criteria. The practice, which is also referred to as programmatic buying, utilizes a set of complicated algorithms running during the milliseconds it takes for a web page to load. Omnicom Group reports that it can bid for up to 10 million online ads every second. The practice already places ads on smartphones, tablets and desktops, but will exponentially grow as televisions and billboards increasingly become connected to the internet.

Sophisticated online ad management systems make it relatively simple for advertisers, agencies and web site owners to track ad space inventories and advertising campaigns. This ability for advertisers and their agencies to tightly control their advertising spending creates new cost-effectiveness and is a powerful boost to overall online ad spending.

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