Short Essay2_LI Jiayuan (1155222162)

Programmatic advertising is obviously the trend of new era. Benefited from the development of artificial intelligence, machine learning and big data, publishers and advertisers can save costs of distributing advertisements manually. This technology enables publishers to utilize every space they have to make profits and makes advertisers target their key consumers more efficiently. It makes it possible that relatively small publishers and advertisers can also have a place in the market, with effectuating the niche market strategy. This development promotes the birth of new types of platforms and systems, like DSP, DMP, ADX and SSP, which play a critical role in the process of programmatic advertising. With the importance of these platforms growing, the competition within publishers and advertisers become fiercer. The mechanism of RTB presents new challenges. For publishers, the advantages of channels are weakened because it is easier to find substitutes. For advertisers, programmatic advertising shows them all the potential competitors, some of which may be neglected in the past, and advertisers have relatively equal starting point faced with specific audience and digital advertising space. Generally speaking, to a certain extent, programmatic advertising may impair the monopoly feature of advertising industry in the old times.

As a result, publishers and advertisers may find that attractive contents and good audience relationship can become the core competitiveness. The former needs to catch users' attention to raise its worth (the type of users it attracts also matters). The latter needs to grasp precious and critical resources and make an effect by maximizing the utilization of limited space, getting valuable interactions and making enough conversions. In addition to contents, time and media form also play a part.

At the same time, better utilization of programmatic advertising can also bring new opportunities. The key is transformation to adapt to the new situation. Programmatic advertising has amazing power to explore what the consumers want to see and alter its contents to attract the target person. It appears so customized and individualized, like a friend that knows through and through. We can easily find the figure of programmatic advertising in our daily life. Once someone buy a new category commodity, he may be targeted as a potential customer for some industries and brands. Then soon he will find that when he opens his app, browses websites or searches information in the Internet, he comes across much information about similar products he just bought. L’Oréal once expanded its market in Canada and America using Google Analytics Premium and Google’s DoubleClick Bid Manager, finding potential customers, identifying the phrase of purchasing of these customers, and launching corresponding advertisement contents. The programmatic advertising doesn’t cease after first launch of advertisement. It is a dynamic ongoing process of keeping tracking, evaluating performances, altering strategies and remarketing. Doing so, brands can continuously maintain organic connections with consumers to get long-term return.

One critical thing that needs to be considered is the privacy concern towards programmatic advertising. Consumers become more concerned about the privacy issues. New regulations worldwide are issued to protect the information of consumers, such as The American Privacy Rights Act (APRA), which allows consumers to opt out. Though there are more limitations, the trend of programmatic advertising is not prevented. Machine learning and automation may help to bridge the gap in data. New data sources are being researched. People working in related industries may need to be trained to gain new skills to adapt to the new development. Considering the great profits and flexibility of programmatic advertising and its conformity with the new media era, going forward is always better than recession.