American Express’s recent RFP asking the ad tech industry for strategies to shift 100% of their $128.5M online advertising budget to programmatic channels caught our attention. $128.5M you say – I think we could work with that!
AMEX’s strategic shift propels programmatic further into the forefront of digital media buying. It is a hot topic that is getting hotter. Programmatic, aka RTB is transitioning from bleeding edge to cutting edge to best practice. It won’t be long until acronyms like DSP, RTB, DMP and SSP spread beyond the advertising technology crowd and enter the lexicon of traditional advertising executives.
What is a DSP? A demand-side platform is a piece of software used to purchase advertising in an automated fashion. DSPs are most often used by advertisers and agencies to help them buy display, video, mobile and search ads.
What is Programmatic? “Programmatic” ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders. It’s using machines to buy ads, basically.
What is a DMP? In simple terms, a data management platform is a data warehouse. It’s a piece of software that sucks up, sorts and houses information, and spits it out in a way that’s useful for marketers, publishers and other businesses.
What is a SSP? A supply-side platform is a piece of software used to sell advertising in an automated fashion. SSPs are most often used by online publishers to help them sell display, video and mobile ads.
While it may not be realistic (yet) for a company like AMEX to shift 100% of their budget to programmatic, it is exciting to see an international financial juggernaut embrace the strategy with gusto. American Express sends a signal to other brands that programmatic has a solid place in today’s media buying landscape.