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RTB Real-Time Bidding & Programmatic: The same?
Signage seems to have its own unique idiom. There are two words from all the technical lingo that have become true catchwords in recent years, and their comprehension is the keys to getting to grips with AdTech and, in the end, to taking advantage of it. Programmatic and Real-Time Bidding (RTB) concepts are tightly linked and often used together, but the two words are not the same.
But before we unravel them and take a look at their difference, let's trace them back to their origin: the purchase of medium. As is the case for online marketing, purchasing is the most potent and frequently used instrument in the repertory of today's marketing companies. Previously, advertisements were based on a system where agents had to place orders, often directly with publishing houses, haggling over prices, sizes and many other smallities.
Prior to the programmatic mediabuying, brand names personally traded agreements with publishing houses. Now, users are moving from the desktops to the smartphones to the tablets and back again, snaking through various web sites, online communities and portable applications, so how on earth are advertiser's supposed to keep up? It'?s a programmatic one. Put in simple terms, programmatic medium purchase is the automatic acquisition of advertising spaces (display advertisements, flags, videos) using special programs and algorithm that automates the entire production for you.
This figure shows how an advertisers can buy ads from a publishers programmatically: So there are many different ways how to buy on-line medias program controlled, including: Programming on an individual base and similar to the way advertisements were bought in the early years of the web, but with the help of computer programs.
Programmatic direkt enables advertising agencies and publishing companies to negotiate the conditions of the advertising medium and then use AdTech platform to automatically deliver and report on the advertising medium. Timely bidding (RTB) enables marketers to buy advertising spaces (also known as inventory) on an impression-by-impression basis through open auctioning, i.e. any marketer can offer and buy advertising spaces on a publisher's website.
PMP is a RTB format, but instead of being available on the open markets, the stock of a PMP is only available to select marketers. Usually this kind of medium purchasing is done on premier websites (e.g. Forbes and the Wall Street Journal) and major brand names (e.g. These automatic procedures have significantly increased efficiencies for both buyer and seller.
The advantages are particularly significant given the high degree of disintegration created by the explosion in the number of available digit ducts and publishing companies. In addition to the improved effectiveness in comparison to previous methodologies of mediabuying, it is also information about consumer behaviour, geographic location, daytime and many other variables that help marketers quickly reach certain audience groups with their advertising spending.
On the basis of the public information available to marketers at the point of the ad call (or offer request), they can select where the images will be delivered in live action, just like when loading a page. Here is a brief summary of what the real-time bidding (RTB) mediabuying procedure looks like every single minute of the way: In a DSP, an ad operator (e.g. a brand) or an ad agent creates ad campaign.
Every and every times an ad serving becomes available on a publisher's website, the publisher's SSP will send a quote inquiry to an adboard. Whereas estimates put the RTB at over 90% of all programmatic purchases and over a third of all total marketing expenditure. RTB vs. Programmatic. One of the possible programmatic procedures for purchasing on-line advertisement mediums is RTL.
Programmatically, the concept is not very peculiar - it simply implicates that the whole thing is automatic and includes a number of different modes of purchasing such as RTB, Privatemarketplace and Programmatic Direkt. Whilst all these procedures are used for purchasing inventories, each of them differs slightly from the others.
To get a deeper insight into how they work together in the programmatic environment and what makes them different, take a look at a more detailled article in our blogs. Having seen exactly how programmatics and RTB match, what does that mean for the time being? As AdTech has developed so rapidly in recent years, and as a result of the growing focus on efficient ad and promotional spend, Program and RTB will keep growing and expanding into new media such as TV and sound.