According to Business Insider, in the last several years, programmatic advertising has quickly grown to a $15BN industry today. This represents over 53% of all digital advertising in 2015.
At the center of the ecosystem are the ad exchanges (like DoubleClick, App Nexus, Rubicon, PubMatic, OpenX, Mopub, Smaato and AdTech). These are platforms where advertisers can set up ad campaigns to buy impressions and publishers can offer up inventory to be sold. This computer-driven system replaces the need for human driven ad networks or sales teams.
Wrapping around the ad exchanges are three key players: (i) the data management platforms, or DMPs (like Adobe, X Plus One, Blue Kai, Aggregate Knowledge Knotice, Core Audience and nPario), who collect and store all the internet user data in one central database; (ii) the Demand Side Platforms, or DSPs (like DoubleClick, MediaMath, DataXu, Rocketfuel, App Nexus and Marin Software), who enable marketers to bid on and buy ads from ad exchanges, including all campaign analytics; and (iii) the Supply Side Platforms, or SSPs (like OpenX, PubMatic, Rubicon Project, App Nexus, and Right Media), who enable publishers to offer inventry for sale through the ad exchanges, including all revenue analytics. In addition, the huge sites like Google, Yahoo, AOL, Microsoft and Facebook have set up their own programmatic ecosystems, as well.
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On average, assume CPMs (cost per 1,000 impressions) in the $0.50 to $2 CPM range via programmatic. Which is material savings vs. the $10 or higher CPMs that are typically in the human-driven, non-programmatic world.
http://www.latechwatch.com/2016/02/basics-programmatic-advertising/
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