The programmatic digital advertising market

State of the advertising market and its evolution

The global market for programmatic advertising is growing steadily and already represents 89% of advertising investments and should grow over 2020 according to a study by the SRI observatory.

On the other hand, the advent of the “all programmatic” – i.e. the advent of fully automated digital advertising – has contributed to the growth of a whole ecosystem of intermediary players between the advertiser and the Internet user targeted by its advertising.

To understand the entire distribution chain of a programmatic advertisement, the Interactive Advertising Bureau has created a diagram representing all the actors involved in the process.

Understanding in a few words what “programmatic” advertising is

Programmatic is the act of automating a decision. Applied to the advertising market, programmatic advertising should be considered as a form of advertising purchase that allows brands to dynamically manage their advertising purchases, the implementation of their advertising campaigns and their automated delivery. 

Advertisers are increasingly confronted with certain perverse effects of programmatic advertising, in particular raising questions about the transparency of the media/sites on which the brand’s advertising is displayed. These issues of brand safety and fraud, which are fuelled by the number of intermediaries and the opacity of the eco-system, are now prompting some large advertisers such as Unilever and Procter & Gamble to rethink their digital advertising investment strategy, in particular by creating a network of certified publishers or even cutting certain budgets.

The problems of Brand Safety in programming for e-merchants

The term Brand Safety refers to practices that ensure that a brand does not appear in an environment that could be detrimental to its brand image. Programmatic advertising purchases are partly “blind buy” and only partially allow individual advertisers to control the location on which their advertising appears. 

The proven fraud in programming and its consequences on the advertising budget of e-merchants

The second perverse effect of programming is proven fraud, as 50% of advertising traffic is said to be of fraudulent origin, i.e. generated by robots. This constitutes a dead loss for e-commerce advertisers who invest part of their budget in programming on a CPM model (at Cost Per Thousand.) They do not reach their targets or potential prospects, it is a loss-making investment that directly impacts the performance and return on investment of the brands and contributes to degrading the image of programming, which remains however a notable evolution in the digital advertising sector.

The rise of the Adblocks

In addition to all this, the use of AdBlockers is also in the. Internet users are saturated with ads and are installing more and more ad blocking software. It is estimated that a third of French Internet users have an AdBlocker, filtering out advertising. It is estimated today that about 30% of your audience will never see your ad.

All these cumulative issues are pushing advertisers to vary their advertising distribution sources and find new, less intrusive communication levers where they can have 100% control over their brand image and spending, and in a more transparent way. 

Web Push Notification: an innovative and non-intrusive format for e-commerce

The Web Push Notification is positioned as a medium that can serve the interests of advertisers and Internet users. It provides a solution to all above mentioned problems and allows advertisers to regain control of their audience.

Web Push Notification is a message pushed directly by the user’s browser to their mobile or desktop; without the need for a delivery medium (site). It is an “GDPR Compliant” format, because the user has agreed to be contacted via notification. The collection of the Internet user is done directly by the browser, acting as a trusted third party. The Internet user alone can choose whether or not to subscribe and manages his or her own unsubscription.

The problem of Brand Safety disappears, because the e-commerce advertiser can choose the sites on which to appear, in total transparency. And with Web Push Notification, there is no risk of fraud, because it is the browser itself that pushes the notification to the user’s device in real time. 

Web Push Notification also helps to counter the rise of AdBlockers, as it is not affected by ad blocking software. The browser pushes the notification directly to the Internet user when he is connected to the web. In other words, an Internet user who decides to block ads during his web browsing but wishes to receive your communications will be able to do so!

At Adrenalead, we are convinced that the interests of brands, users and publishers must be realigned. We have launched the first Web Push Notifications customer activation platform offering an audience extension. Our solution allows e-retailers to regain control of their ad delivery by quickly building a network of web users who subscribe to web notifications.

What if you took back control of your digital strategy and took control of your audience and your advertising expenses? Let’s talk about it !