Technology Programmatic and RTB have made a big breakthrough in the world of online advertising. With their appearance, advertising start to develop more actively. On the market, there were new advertising platforms and networks with their inventory, and advertisers and agencies had an opportunity to buy impressions for specific audiences.
Previously, advertisers had to negotiate independently with dozens of advertising systems about publishing their ads. Each system had its own interface, settings, rules, working conditions, etc.
The cost of advertising dictated the owners of systems and sites. And advertisers could buy only an advertising space or a banner, and not a display of advertising to the target audience. It was quite problematic to determine on which advertising platforms and when the right target audience is present. All these actions are very difficult for those who want to buy advertising. A solution was invented. Such technologies as Programmatic marketing and RTB would simplify the process of placing advertisements using a single entry point on different stock exchanges and sites.
Now, these technologies are used by almost all large advertising networks: Google, Yahoo, Internet Explorer, and others.
Now more about these technologies.
Programmatic marketing online campaigns is a technology to automate the process of buying and selling advertising equipment, based on knowledge of the preferences of users. Simply put, this is a program that very quickly (for a fraction of milliseconds) decides to display an advertisement to a specific user. Programmatic includes any automated acquisition of advertising equipment through bidding at an auction or directly by agreement with advertising platforms.
It is also often possible to meet the next definition of Programmatic Direct: the same Programmatic, but with direct purchase of advertising displays on sites, past the general auction. Programmatic Direct is the process of purchasing advertising equipment using the Programmatic tools, but the advertiser communicates directly with the site in order to conclude a deal.
RTB (Real Time Bidding) is also the automation of buying and selling advertising, which is based on the real-time auction model.
Unlike the old model of media purchases, in RTB platforms, not an advertising space is put up for auction, but the display of advertising materials is absolutely specific to the visitor. This makes it possible to buy only the target audience. In addition, there is no fixed price for displaying ads in RTB. Advertisers themselves assign bets in increments of one cent. In the auction, the one who offered the highest bidder wins. And the display of advertising is carried out at the rate of the previous competitor in the auction – auction of the second price.
Many often confuse the Programmatic with a real-time auction (RTB). RTB is one of the models of programmable advertising procurement that is part of the Programmatic concept.
In general, remember two rules: if through the Programmatic biddings for advertising go through the auction – it’s RTB, if on a straight line with the site – it’s Programmatic Direct.