06-15-2017

Glossary: Programmatic Advertising

RTB, DMP, SSP!? These aren’t just buzzwords, they’re central terms in the world of programmatic advertising. Our glossary explains these terms and concepts, helping marketers understand the ecosystem that is set to transform their industry and professions into the future.

Glossary: Programmatic Advertising

Glossary: Programmatic Advertising

Download the programmatic advertising glossary here

Programmatic advertising allows marketers to reach their target groups across various channels and platforms using relevant ad inventory. In this process, messages are tailored to users and the purchase of ad spots is optimized in real time. This increases efficiency and allows for better targeting and more conversions.

A quick glance at the numbers demonstrates how important this topic is for advertisers: according to the Interactive Advertising Bureau (IAB) Switzerland, programmatic advertising made up 5–10% of digital advertising in Switzerland in 2015. Since then, this percentage has increased dramatically: the IAB and the Bundesverband Digitale Wirtschaft (BVDW) expect that 40% of the display and mobile ad inventory and 45% of the video inventory in 2017 will be processed programmatically in Switzerland.

In Germany, the proportion of net ad sales represented by programmatic advertising on the total market for digital display advertising is set to amount to 45% in 2017. In the UK, budgets for programmatic advertising are expected to grow to 75% of total spending for display ads in 2017, and to 78% in the US.

These figures highlight that if you ignore programmatic advertising, you are ignoring the reality of online advertising. In order to stay relevant, marketers need to be able to understand the language and central concepts of programmatic advertising. That’s why we've written a glossary explaining the most important terms in a simple and easy to understand way – a useful guide to help you get acquainted with the topic or refresh your knowledge.

Enjoy!

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