Advertising sales could transform as programmatic trading takes off

Computer auction-based system is set to go beyond its roots in display sector but questions remain on transparencyProgrammatic trading of advertising has been around for a decade or so, but advocates believe 2014 could be the year it breaks out beyond its online display roots and takes hold in other media sectors. A highly complex, computer auction-based system of buying ads – with transactions taking fractions of a second – programmatic trading is similar to how stocks and share are traded in the City. The trading, which takes the form of automated real-time bidding based on complicated algorithms, matches ads with audiences.Long-established methods of buying and selling advertising, involving transactions between media buying agencies and media companies' in-house sales teams, are under threat as publishers, broadcasters and outdoor advertising companies eye up the cost-saving opportunities of programmatic trading.Jay Stevens, international general manager at automated advertising seller Rubicon Project, which last year struck a strategic deal with News Corp to sell its inventory programmatically, says: "We are seeing entire markets moving en masse. Publishers are watching print revenue decline and looking at digital to make up the [revenue] they are losing in print. They have to move to automated trading or they will die."Programmatic trading is forecast to grow from a $12bn industry in 2013 to $32.5bn in 2017, across the UK and eight other countries where it is best... Continue reading at 'The Guardian'

[ The Guardian | 2014-02-10 00:00:00 UTC ]
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