Programmatic Ad Supply Chain and Adtech Taxes: This Company Believes Its Platform Offers the Solution

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Programmatic ads have significantly disrupted the way ads are bought and sold these days. It used to be that buying ads meant going through a salesperson and human negotiation process, but now, with the inception of programmatic ad technology, ads can simply be bought at the click of a button — making buying ads in today's landscape superficially easy.

It seems advertisers are willing to spend more on programmatic ads, which is evident from the surge in the programmatic ad market from more than $120 billion in 2020 to $155 billion in 2021, according to Statistica. While the industry is thriving, underneath it lies the ad supply chain comprising quite a list of ad vendors. Each dollar spent on an ad has to travel through this list before it gets to the publisher who will distribute it to the target audience.

For ads that are bought programmatically, a certain percentage of the budget is spent on platform fees like demand-side platforms (DSP), sell-side platforms (SSP), ad serving fees and verification vendors as they go down through the supply chain. The long and complex nature of the supply chain makes it difficult for advertisers to quantify how much money is sent to the publisher. The fees spent on each vendor down the supply chain is what is called an adtech tax, and it is estimated that this accounts for almost 55% of the budget spent on programmatic ads.

What’s the Solution?

One of the ways is for advertisers to develop a direct rapport with the publishers. By having a direct relationship with the publishers, advertisers would get a clear picture of how many vendors are in their ad supply chain and be able to find direct routes to the publishers and lower their adtech taxes. However, this process eliminates the whole purpose of programmatic ads, which is to remove human negotiations.

The more ideal way would be to replace the fragmented, multi vendor adtech supply chain ecosystem with one integrated system. Mobiquity Technologies Inc. MOBQ seeks to offer this solution through its Advangelists platform.

The Advangelists Platform

Advangelists is a media buying platform that brings together all the great features needed for programmatic ads into one system. The platform removes all the complexities associated with buying programmatic ads that require many vendors. The company believes an automated programmatic system reduces costs and is time efficient.

The platform has the following capabilities:

•         Demand-side platform (DSP) plus adserver
•         Fraud protection feature called Adcop™
•         Customizable analytics and reporting
•         Machine learning optimization
•         Rich media and ad serving
•         Data-management platform
•         Location targeting and attribution

For the location feature, Advangelists merged with the data intelligence company Mobiquity Networks to build what the company believes is the most sophisticated hyper-location-aware targeting system available to programmatic markers. According to its website, Advangelists has more than 5.5 million points of interest consisting of commercial, industrial and public locations.

Mobiquity has been in the ad space since 1998, and it faces competition with other adtech companies such as Magnite Inc. MGNI, PubMatic Inc. PUBM, The Trade Desk Inc. TTD and AcuityAds ACUIF.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.