The evolution of programmatic advertising from simple automated tasks to the current advanced digital platform that determines how an estimated hundreds of millions per day will be sold in advertisement impressions. Initially, buying advertising impressions included discussions and negotiations between media buyers and sellers. Now, programmatic advertising is redone using algorithmic bidding, real-time data analysis, and highly automated advertising campaign optimization.
Agencies and media companies are looking for change; as the ecosystem has matured, many are re-evaluating their dependence on companies providing third-party platforms for running their programmatic advertising. Companies want to begin to create their own advertising technology environment (as they come to the understanding that it would be more profitable). There is a new trend known as DSP White Label Systems that enables companies to develop their own customized programmatic advertising environment without needing to create the core components of a programmatic system.
As you consider the functionality required by technology vendors, you have likely heard about Gamoshi and their flexible programmatic infrastructure; agencies and ad networks are utilizing technology providers such as Gamoshi to participate more directly within the digital media purchase mechanism.
Why Control Over Advertising Technology Matters
Many years have passed since various advertising agencies were dependent upon very large third-party demand-side platforms as their sole means of executing campaigns. While providing easy access to inventory, these platforms also presented certain limitations with regard to transparency, customization, and the ownership of customer data.
As digital advertising budgets have grown, advertisers feel as though they are not able to see their whole picture (i.e., bidding behavior, cost structure, and quality of inventory). This new perspective has led many organizations (advertising agencies) to begin exploring infrastructure models that provide more control over how they operate.
The ability to run a customized white-label DSP allows the advertising agency the ability to build and manage all facets of running campaigns, generating reports, and managing workflows to meet their unique requirements instead of conforming to the strict design of third-party platforms.
Understanding the White Label DSP Model
The demand-side platform requires a great deal of engineering resources simply to build this type of platform. The demand-side platform that requires a real-time bidding engine has to go through huge numbers of auction requests as well as tie into many ad exchanges and other data suppliers. The time and money that it would take to build a demand-side platform independently would be many years for all agencies and a very large amount of money.
A white-label demand-side platform provides a solution by allowing organizations to have their own brand of the programmatic platform while obtaining the technological backend of the platform developed by a company specializing in that. This model allows for programmatic media buying with no need to build your own complex systems and provides a customizable media buying environment for agencies executing digitally focused media campaigns.
Infrastructure Providers Powering the Programmatic Ecosystem
A network of technology vendors is responsible for managing the infrastructure that supports digital media transactions in a programmatic media environment. These vendors/companies are developing solutions that will allow for a scalable system that can accommodate the high volume of digital media and advertising data, auctions, and campaign-related signals to deliver an effective media buy. The technical foundation for the execution of a programmatic advertising strategy by agencies and advertisers is built on the platform of technology vendors.
Gamoshi provides a platform within this infrastructure layer that enables agencies and/or ad networks to create bespoke ad environments that utilize established programmatic technologies.
Rather than trying to outcompete agencies and advertisers, technology vendors are working to enhance the framework of digital advertising and provide the basis for all parties involved in executing programmatic advertising.
Business Advantages of Running a Branded DSP Environment
Using a white-label DSP platform gives organizations an advantage over exclusively depending upon external systems for their campaigns’ operational capabilities.
Owning the platform allows agencies to improve their understanding of their campaigns by providing them greater access to both the data from each campaign’s purchase and how the campaigns were developed. Analyzing the buying behavior of different suppliers and understanding where the inventory came from and how the campaign performed is now direct and therefore easier.
The flexibility of having a branded DSP environment gives the agency better options for creating custom-built workflows. The development of custom dashboards, reporting models, and workflow design will allow the agency to have access to what best fits its clients and have unique technology items for their clients.
An agency that uses a branded DSP in its market will have an advantage over its competitors. They will be able to differentiate themselves by being known as a “technology partner” instead of “just” another media intermediary.
Key Operational Factors Agencies Should Evaluate
Prior to deploying a DSP white-label solution, many companies check a number of operational considerations to see if the platform meets their long-term goals for their advertising.
Some key elements are:
- Scalability of the platform to allow for large amounts of bids and traffic to be run through the DSP
- The use of exchange partners to secure inventory for advertisers
- Data protection and privacy across jurisdictions
- The ability to fully customize the system to meet the agency’s workflow and UI requirements
- The ability to receive adequate technical support and maintenance from the vendor
Evaluating these factors allows agencies to determine if a white-label DSP strategy supports their long-term programmatic objectives.
The Evolving Future of Programmatic Technology
With the rise of privacy legislation, the growth of streaming services, and the increasing use of machine learning in order to enhance campaign performance, the landscape for digital advertising is changing rapidly.
All brands are now reevaluating how to approach programmatic advertising. As a result of this reevaluation, many brands that previously relied completely on third-party platforms are now testing hybrid solutions consisting of their own proprietary platforms and adaptable tech-enabled solutions.
Ad agencies can take advantage of the technology infrastructure that enables them to function independently from existing market forces. An example of alternate technology infrastructure available to ad agencies is the emergence of white-label DSPs. White-label DSPs enable ad agencies to function independently from traditional ad networks while still providing ad agencies with the tools and resources necessary for success.
Conclusion
Programmatic advertising has gone from simply automating the purchase of media spots to developing an entire technology infrastructure behind automated media purchases as an ecosystem. Demand-side platforms are a major part of that ecosystem, providing advertisers with the inventory they need to run campaigns, allowing them to analyze the performance data of their campaigns, and also enabling advertisers to optimally execute across all digital media channels.
As agencies demand greater operational flexibility and transparency from agencies, there is an increased demand for white-label DSPs and DSPs that offer white-label technology. This is further facilitated by Gamoshi and other infrastructure providers that are creating new tools for organizations to build scalable programmatic advertising capabilities while maintaining ownership of their own ad technology.
