Programmatic advertising, the automated process of buying and selling digital advertising space in real-time through an auction-based system, has become incredibly popular in the B2B sector. Case in point: After years of double-digit growth, programmatic ad spending in the U.S. is on track to surpass $200 billion in 2023. The modern advertising approach has become a staple among B2B organizations, chosen for its ability to drive efficiency, targeting, real-time optimization, and much more.
Curious about how it’s developed over time and where it stands today? Here’s some more about the evolution of programmatic advertising and why it’s in an organization’s best interest to understand—and take advantage—of the approach.
HISTORICAL PERSPECTIVE: PROGRAMMATIC’S EARLY DAYS
Although programmatic advertising came about from a variety of sources, Joe Zawadzki (co-founder and chief executive officer of MediaMath) is largely credited with first applying technology to advertising. As his next company, Poindexter, provided tech to agencies, it essentially became a launching pad of website optimization and then programmatic advertising. From there, the concept and technology grew and evolved into what it is today.
Prior to the rise of programmatic options, B2B marketers faced many challenges with traditional advertising. They would unintentionally waste ad spend, having to invest significant budgets in advertising campaigns that reach a lot of irrelevant or uninterested viewers. Much of their transactions were manual, and the entire end-to-end process lacked efficiency and flexibility. There was a lack of integration of advertising technology with other tech tools and overall limitations that prevented B2B advertisers from getting much from their investments.
TECHNOLOGICAL ADVANCEMENTS: DRIVING FORCE BEHIND EVOLUTION
In the early 2000s, Brian O’Kelley was responsible for even more advancement in the world of programmatic ad tech, including creating the online advertising exchange, related technologies like demand-side platforms (DSPs), data exchanges, and real-time bidding (RTB). All of these moved programmatic advertising forward by leaps and bounds.
Here’s a look at how some of these innovations changed the game:
- RTB helps B2B marketers bid in real-time for ad impressions, enabling precise targeting, cost efficiency, and the ability to reach their desired audience with relevant messages at the right moment.
- DSPs have been equally revolutionary, helping B2B marketers by providing a centralized platform from which they can manage and optimize programmatic ad campaigns.
- Data Management Platforms (DMPs) help B2B marketers by collecting, organizing, and analyzing data from various sources to create detailed audience profiles.
- All of these evolutions have contributed toward helping B2B advertisers reach their target audiences more effectively, optimize campaigns in real-time, and achieve better ROI.
Credit: https://www.fastcompany.com/90971010/the-evolution-of-programmatic-advertising-in-the-b2b-landscape