Keeping Up with Programmatic Trends & DSPs

Programmatic advertising is evolving at breakneck speed. If you’re not keeping up, you’re already behind. The tools, trends, and platforms that define digital ad buying are shifting, making it crucial to stay ahead of the curve. But what does the core of programmatic advertising look like today? Let’s explore what you need to know, how to evaluate demand-side platforms (DSPs), and which trends are shaping the future.

What is Programmatic Advertising?

Programmatic advertising is the automated buying and selling of digital ad space. Instead of traditional negotiations, it uses real-time bidding (RTB) to dynamically purchase inventory based on predefined targeting criteria. Programmatic buying styles extend beyond RTB and include private marketplaces (PMPs) and programmatic guaranteed (PG) deals, which provide additional control over inventory and pricing.

Source: Pathlabs

The key players in this process include:

• Publishers: Website owners offering ad inventory.
• Supply-Side Platforms (SSPs): Platforms that help publishers sell their ad space.
• Demand-Side Platforms (DSPs): Platforms where advertisers buy ad space.
• Ad Exchanges: Marketplaces where transactions between buyers and sellers happen in real-time.
• Data Management Platforms (DMPs): Systems that help advertisers manage and leverage audience data for targeted ad placements.

Each time a user loads a page, a bidding war happens within milliseconds, ensuring the highest bidder places their ad in the best possible spot.

The Different Types of Programmatic Advertising

Understanding the different types of programmatic advertising helps marketers determine which approach best fits their goals:

• Open Exchange: Public marketplace are open to all buyers and have where multiple advertisers bidding on available ad inventory in real-time. The Open Exchanges general has the largest inventory scale but offers the lease amount of control over ad placements.
• Private Marketplace (PMP): Invite-only auction where premium publishers offer ad inventory to select advertisers. With PMP’s advertisers are more likely to win the premium inventory and have better placement control at a slightly higher cost.
• Programmatic Guaranteed (PG): Direct deal where advertisers purchase a fixed amount of impressions at a pre-agreed price. PG ensures guaranteed delivery but lacks bidding flexibility.
• Preferred Deals: One-to-one deals where advertisers receive first-look access to premium inventory before it goes to auction.

Understanding these options lets advertisers make informed decisions about balancing scale, quality, and control in their media buying strategies.

Benefits of Programmatic Advertising

Programmatic advertising isn’t just about automation. It’s about efficiency, targeting, and performance. Here’s why it’s a game-changer:

1. Efficiency & Automation

• Programmatic eliminates the need for manual negotiations, significantly speeding up ad placements.
• Agencies using programmatic guaranteed methods reported 29% time savings compared to traditional reservation methods.

2. Improved Reach & Frequency Management

• Centralized campaign management prevents overexposing users to the same ad too frequently.
• A Google study found that consolidating campaigns with programmatic ads resulted in an 11% improvement in reach efficiency.

3. Precision Targeting

• Programmatic advertising uses real-time data to target specific demographics, interests, and behaviors.
• Advertisers can leverage first-party data securely while supplementing with third-party audience insights from providers like Oracle, BlueKai, and Experian.

Think of it this way. Programmatic advertising allows you to target specific audiences based on some detailed attributes like demographics, interests, purchase behavior, and online activity, ensuring that your ads are seen by the most relevant users. This can be done by piping in your first-party data in a privacy-safe manner.

4. Better Ad Placement Control

• Advertisers can choose from open exchanges, private marketplaces (PMPs), or programmatic guaranteed (PG) deals to balance cost, reach, and ad quality.

5. Cost Transparency & Optimization

• Insights into inventory, audience, device, and ad format performance allow advertisers to make data-driven budget decisions. 
• AI-driven bid strategies optimize ad spend dynamically to meet performance goals.

How to Evaluate a Demand-Side Platform (DSP)

Not all DSPs are created equal. When selecting a DSP, focus on these five key areas:

1. Inventory Access

• Does the DSP provide access to premium inventory like YouTube, OTT, or digital out-of-home (DOOH)?
• How many ad exchanges does it integrate with?
• Does ithave access to exclusive inventory?

2. Audience Targeting Capabilities

• Can the DSP ingest first-party data for advanced targeting and/or suppression?
• Does it offer robust third-party data partnerships?
• Does it provide access to retail media networks or exclusive data sets?

3. Optimization & Automation

• Does it allow for both manual and automated optimizations?
• Can the system auto-optimize towards different KPIs based on your goal (reach, clicks, conversions)?
• Does it offer AI-driven campaign enhancements?

4. Bid Methods

• How flexible is the platform when it comes to bid strategies?
• Can you adjust your bids based on device type?
• Are you able to alter bids for each audience? 

5. Cost & Fees

• Is there transparency in how DSP fees are structured?
• Are there hidden costs that impact efficiency?
• What are the platform fees versus audience data fees?

Once you have a good handle on all of these areas for each DSP you’re evaluating, you can put together a side-by-side comparison to determine which platform is best for you.

A Quick Look at Leading DSPs

We recently analyzed nine DSPs for a client of ours and narrowed them down to four standout platforms based on the client’s needs:

• DV360: Google’s DSP offers seamless integration with the Google ecosystem, making it a solid choice for advertisers looking for deep data connections and transparency.
• Amazon DSP: Strong on first-party shopper data, but limited in third-party data integrations.
• Mountain: A CTV-focused DSP with creative production tools and unique keyword-based audience targeting.
• Ad-Lib: A meta-DSP offering access to multiple DSPs under one roof, but with limited programmatic guaranteed deals.

Key Programmatic Trends Shaping the Industry

1. DSPs & SSPs Are Blurring the Lines

Source: Pathlabs

The traditional distinction between demand-side platforms (DSPs) and supply-side platforms (SSPs) is fading. Major DSPs like The Trade Desk and Yahoo are forging direct relationships with publishers, reducing reliance on SSPs. At the same time, SSPs like Magnite and PubMatic enable advertisers to buy directly without DSPs. The demand for greater transparency, cost efficiency, and more control over inventory access drives this shift. Paid media marketers should evaluate opportunities for direct publisher integrations while optimizing their supply path for efficiency.

2. OTT & CTV’s Continued Rise

With streaming overtaking traditional cable, advertisers must prioritize connected TV (CTV) and over-the-top advertising (OTT). Platforms like Netflix, Hulu, and Disney+ are expanding their programmatic inventory. Marketers should:

• Allocate more budget to OTT advertising as streaming adoption increases.
• Experiment with shoppable CTV ad formats and interactive video.
• Utilize advanced measurement solutions to track CTV ad effectiveness.

3. The Expansion of Retail Media Networks

Retail giants like Walmart, Amazon, and Kroger capitalize on their rich first-party consumer data by creating their own ad networks. Retail media offers precision targeting based on actual purchase behavior, making it a strong alternative to cookie-based targeting. Marketers should:

• Explore retail media partnerships to enhance audience targeting.
• Integrate retail media with omnichannel strategies.
• Track performance with closed-loop attribution models.

4. The Rise of Programmatic Audio

Streaming audio is an underutilized yet growing programmatic channel. Platforms like Spotify, Pandora, and podcast networks offer immersive ad placements. To maximize success, advertisers should:

• Invest in podcast advertising for engaged audiences.
• Test interactive voice ads that encourage listener participation.
• Use dynamic ad insertion (DAI) to personalize messaging based on listener data.

5. The Gaming Boom

Gaming has surpassed music and sports in revenue, making it an essential channel for advertisers. Brands can engage audiences through:

• In-game programmatic ads, such as rewarded video and playable ads.
• Esports sponsorships to tap into highly engaged gaming communities.
• AI-driven creative solutions that personalize gaming ad experiences.

The Future of Programmatic Advertising

Advertisers need to stay agile as data privacy regulations tighten and AI-driven optimizations advance. The following trends will certainly drive significant shifts in strategy for brands and agency partners alike:

• AI & Machine Learning: AI is enhancing real-time bidding, predictive analytics, and ad personalization, making campaigns more effective.
• Privacy-First Advertising: With the deprecation of third-party cookies, advertisers need to lean on first-party data and contextual targeting.
• Omnichannel Strategy: Successful brands will unify display, video, audio, and social into a single, seamless buying strategy.

Final Thoughts

Keeping up with programmatic DSPs and trends isn’t optional—it’s necessary to stay competitive. Regularly evaluating DSP partners, embracing new ad formats, and integrating first-party data are all essential steps to future-proofing your digital advertising strategy.