THE DIGITAL ADVERTISING ECOSYSTEM – STATUS QUO, CHALLENGES AND TRENDS

Abstract

Programmatic advertising comprises complex and dynamic processes that use algorithms to display advertising in an efficient and targeted manner. Since the introduction of real-time bidding in 2009, various authors have tried to describe and visualize a digital advertising ecosystem. These developed models differ in the number of elements, size, direction, shapes and colors. Due to the different visualizations, it is necessary to develop a standardised model that includes all necessary elements of the digital advertising ecosystem. The authors Stallone and Klaas have developed such a standardised model of the digital adverting ecosystem in a previous paper. This paper focuses on the visualization of the digital advertising ecosystem and its acceptance and applicability as a standardised model in practice. By doing so, the authors were able to identify challenges and future trends of programmatic advertising. In a first step, the authors show all actors and technical elements of the ecosystem by means of literature research. In the empirical part of the work, the focus lied on qualitative expert interviews to find out whether all elements in the visualization are relevant and, if necessary, which adjustments the authors would have to do. The evaluation of the expert interviews showed that there have already been initial changes in the digital ecosystem and further adjustments will follow. As a result, a division into a short-term and a long-term ecosystem development made sense. According to experts, companies can apply the model in practice if the adaptions are incorporated. Moreover, the players in the industry agree when it comes to the challenges of programmatic advertising. The greatest challenges include in particular the lack of expertise, the lack of transparency and lack of brand safety. The standardised model is a significant approach to providing an overview and understanding of this highly complex and dynamic ecosystem in both literature and practice.