In recent years, there has been a renewed emphasis on optimizing the collaboration and synergy among various programmatic elements and market players in the advertising landscape. This discussion includes publishers, advertisers, DSPs, SSPs, and middlemen. The overarching aim is to enhance the quality of interaction, leading to increased efficiency and profitability.

As a result, we are witnessing notable trends such as the convergence of SSP and DSP platforms, the rise of supply path optimization (SPO), and the introduction of innovative products by industry leaders that leverage these advancements. Open Path and Clear Line are examples of such innovations. However, there is another less fashionable and debated approach to solving the problem of optimizing programmatic advertising. It consists of building ecosystems that combine several elements within them. Creating such ecosystems allows for the integration and deployment of additional optimization technologies, further enhancing the overall effectiveness of the advertising ecosystem.

To begin with, we need to define what we call a programmatic ecosystem. It is the interconnected network of components and technologies involved in programmatic advertising. It encompasses various entities such as ad exchanges, demand-side platforms (DSPs), supply-side platforms (SSPs), data management platforms (DMPs), and other intermediaries. Companies tend to create programmatic ecosystems to enhance the efficiency, transparency, and speed of interaction among all elements within the system, resulting in improved outcomes in every aspect.

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How Does It Work?

We can bring together various elements in a programmatic ecosystem to enhance performance. Let’s explore a few examples to gain a better understanding.

By integrating Demand-Side Platform and Data Management Platform technologies into a unified system, we streamline operations, accelerate processes, and provide greater transparency in utilizing valuable data. This approach ultimately results in improved ad optimization for advertisers.

When we merge DSP, SSP, and Ad Exchange technologies into a comprehensive system, we create a full-stack technology that optimizes all aspects of the advertising process. This combination can potentially empower the whole ecosystem to achieve maximum speed, transparency, and efficiency in every unique advertising auction, benefitting all participants.

How Can It Benefit Ad Tech Market Players?

Programmatic ecosystems are imperceptibly revolutionizing digital advertising, providing various benefits to publishers, advertisers, and ad tech companies. These advantages optimize performance, drive efficiency, and foster collaboration, ultimately shaping the industry’s future.

How Can It Benefit Publishers?

One of the key benefits is the significant increase in fill rate. This increased fill rate creates more opportunities for publishers to monetize their content and maximize their ad revenue.

Utilizing the SSPs within the ecosystem can enhance publishers’ eCPM (effective cost per thousand impressions), amplifying every impression’s worth. As a result, publishers can command higher prices for their ad inventory, leading to improved monetization of their digital assets. Another advantage is direct access to high-quality demand within the programmatic ecosystem of the particular SSP to which the publisher is connected. They can tap into a pool of premium advertisers and valuable ad inventory, ensuring their ads reach the most relevant and engaged audiences.

Furthermore, programmatic ecosystems actively reduce discrepancies, minimizing the differences between ad impressions and recorded interactions. This leads to more accurate and reliable reporting, allowing publishers to make informed decisions based on trustworthy data. 

Finally, transparency and clarity are critical aspects of programmatic ecosystems. Publishers benefit from a clear understanding of the ad-serving process, including the auction dynamics, pricing, and real-time performance metrics. This transparency empowers publishers to have greater control over their monetization strategies.

How Can It Benefit Advertisers?

Using the DSPs that are part of the ecosystem can help advertisers significantly improve their results compared to classic DSPs. Expanded reach allows them to connect to diverse audiences and increase the effectiveness of their messaging.

Furthermore, programmatic ecosystems enable advertisers to collect better audience data. Advertisers gain deeper insights into their target audience’s preferences, behaviors, and demographics through advanced targeting capabilities and comprehensive analytics. This valuable data empowers them to refine their strategies and deliver more personalized and relevant ad experiences. Advertisers can optimize performance within programmatic ecosystems. By leveraging sophisticated algorithms and real-time optimization, they can continuously refine their campaigns, improve targeting precision, and maximize their return on investment.

Working with programmatic ecosystems provides advertisers access to the best private marketplace and programmatic direct bidding opportunities. This is particularly crucial for ensuring brand safety. Advertisers can secure their ad inventory through controlled and transparent transactions inside a reliable ecosystem, mitigating the risk of associating their brand with inappropriate or harmful content.

How Can It Benefit Ad Tech Companies?

For ad tech companies, building programmatic ecosystems presents a strategic development opportunity. It enables them to diversify their activities and offer partners unique conditions by implementing a robust internal optimization of the ecosystem’s elements. This approach has already proven successful in the market, as demonstrated by leading companies such as Opera, IndexExchange, Verve Group, Bidscube, and many other ad tech players.

Small and medium-sized ad tech companies can create closed private ecosystems utilizing it as a competitive advantage. These self-contained and secure walled gardens provide various benefits to participants without imposing limitations on their capabilities as the original definition of walled gardens does, benefiting all parties with open internet opportunities. It creates an environment where ad tech companies can effectively collaborate, rapidly exchange valuable data between programmatic elements, and foster tech innovation, moving an industry forward. 

To better understand what programmatic ecosystems stand for, let’s take a closer look at the example of Bidscube.

How is Bidscube’s Programmatic Ecosystem Built?

The project’s initial idea was to create an ecosystem to make digital advertising accessible to everyone. The company is on the way to an extraordinary journey, surging beyond conventional limits to redefine industry norms. With an unwavering commitment to innovation and a steadfast resolve to push the boundaries of what’s achievable, the team at Bidscube is dedicated to perpetual advancement. In our request to create an example of technological sophistication, the team desires to keep up with the future and shape it.

Bidscube has harnessed the power of the ecosystem to provide comprehensive solutions that optimize ad serving, improve targeting precision, and enhance overall performance for its partners. Through our ecosystem, Bidscube offers a secure and controlled environment where advertisers, publishers, white-label partners, and ad tech companies can collaborate and achieve mutually beneficial outcomes. Let’s take a closer look at what specific achievements have allowed us to make the ecosystem of our products perfectly interconnected.

Creating Bidscube Community

Bidscube has leveraged its ecosystem to establish a tightly-knit community that consistently delivers exceptional outcomes. For example, Bidscube’s ecosystem solutions can speed up bid response time several times. Such remarkable speed significantly influences the performance and achievements of all participants involved. It may seem that Bidscube operates within a self-contained environment, often called a “walled garden”. However, it does not impose restrictions on our community members. This approach enables members to fully explore their potential within the secure community of proven-only partners. Bidscube offers publishers the advantage of discovering the most profitable demand for their inventory. On the other hand, advertisers benefit from gaining access to the premium supply they are actively seeking. This dual-sided approach creates a symbiotic ecosystem where publishers and advertisers can thrive.

Unlocking Optimization Capabilities

In addition to fostering a cohesive community, Bidscube’s ecosystem serves as a ground for innovative technologies to enhance the interaction between programmatic elements. 

In a special Cannes episode of VideoWeek’s podcast, BidsCube CEO Dmytro Chebakov revealed the problem that the industry still needs to be sufficiently standardized and optimized in many aspects. 

“I see the main challenges in solving measurement issues and coming up with non-standard, but we all need consistency in measurement, viewability verification, and addressability. We don’t have all this stuff, like a general understanding of what parties are looking for and want. It’s always good for everyone to be on the same page when we move in the same direction in this challenge.”

Building BidsCube’s ecosystem has allowed the company to uncover additional opportunities for such optimizations and improvements in innovative technologies. 

A notable advancement within this realm is the introduction of the Traffic Bridge, a recent development by Bidscube. This cutting-edge feature revolutionizes and streamlines the labor-intensive tasks associated with AdOps, leading to significant communication improvements between key programmatic ecosystem components, namely SSP, DSP, and Ad Exchange. Implementing Traffic Bridge has yielded remarkable results, allowing us to decrease inefficient traffic inside the ecosystem up to four times, which means a massive performance improvement for all our partners. 

Making Digital Advertising Accessible to Everyone

Bidscube has accomplished its primary objective by developing a well-rounded and efficient full-stack programmatic ecosystem. This comprehensive approach has allowed us to cater to the diverse needs of various market players.

First, Bidscube’s approach suits large advertisers seeking brand safety and direct solutions. With Bidscube’s full-stack programmatic ecosystem, these advertisers can confidently engage in advertising campaigns, knowing that their brands are protected and their messages reach the intended audience effectively.

Furthermore, Bidscube’s solution benefits independent and enterprise publishers eager to monetize their content using a comprehensive ecosystem. With just half an hour of setup time in their Bidscube SSP account, these publishers can start generating revenue from their online assets. This streamlined process empowers independent publishers with an efficient and user-friendly monetization solution that operates real-time data.

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By adopting Bidscube’s solution, businesses can leverage the power of programmatic advertising while maintaining seamless integration with its existing business framework. Our solutions are suitable for most companies in the ad tech industry as a near-perfect solution that is easily scalable and will satisfy any advertising needs. This approach enables them to strengthen their brand identity and provide a cohesive user experience to their customers.

What’s next? 

Programmatic ecosystems can become a game-changing trend in the advertising industry. As the sector prioritizes optimizing collaboration and efficiency among programmatic elements, ad tech companies are constructing robust ecosystems. They enhance the overall effectiveness and benefit publishers, advertisers, and ad tech companies.

For publishers, programmatic ecosystems lead to increased fill rates, higher eCPM, access to high-quality demand, reduced discrepancies, and enhanced transparency. Conversely, advertisers benefit from expanded reach, efficient data management, and optimized performance. Bidscube, for instance, has developed a programmatic ecosystem that facilitates comprehensive solutions, a swift bid response time, and innovative features like the Traffic Bridge, resulting in exceptional outcomes for its community members.

Considering the industry’s direction, programmatic ecosystems have the potential to shape the future of digital advertising.

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