Paid Media

Mark the Difference Between Programmatic Media Buying and Real-time Bidding

Real-Time Bidding and Programmatic Progress - AquGen

These two concepts, Programmatic Media Buying and Real-time buying seem to confuse many investors and traders. Even though they may appear similar, there is a difference between them. To know better, each of them must be considered individually

Programmatic Media Buying

It is an automatic running program that is based on an algorithm or schedule. In terms of digital advertising, programmatic buying is a buying method accomplished via machine technology to enhance and optimize ad buying. This entire process is data-driven and digitalized ad space at a large scale with the help of automated software which is based on complex algorithms. It allows hyper-personalized targeting with agile messaging across all paid advertising. It not only replaces the manual process of media buying with technology-based solutions but also eliminates the risks associated with human error.

Main Features of Programmatic Media Buying

  1. Based on Artificial Intelligence (AI) technologies.

Artificial Intelligence Technologies such as machine learning and deep learning are used. Both of these techniques use algorithms to inspect data, learn from it and then make a prediction or a judgment over the success of the given advertising campaign or estimating ROI or user engagement. The main objective is to enhance the performance of the campaign and to evolve based on ever-changing market dynamics.

  1. Deep Learning Algorithms

Computers can track everything and analyze a much faster pace. It also helps in building more accurate online consumer profiles and make scrupulous predictions based on the actual use rather than proposed usage.

  1. Valuable insights

These conclusions help in providing valuable data and also deliver important insights. Advertisers receive feedback on how the audience engaged with the ad and what factors affected the ad’s success.

  1. Precise targeting

You can easily select your target audience based on certain metrics obtained through algorithms. Programmatic progress is simply based on placing an ad in the right context to the right people regardless of the place.

Real-time Bidding

Real-time bidding is a form of programmatic buying. Many people have a misconception that RTB is the only way to buy media programmatically, but that’s not true at all. Advertisers might use programmatic as direct or fixed-price programmatic methods which are traditional forms of buying ad space using programmatic technology and it doesn’t involve RTB at all. Instead as per this model, digital ad inventory is sold directly to advertisers with some prior negotiation with a publisher but there isn’t any bidding. Therefore, programmatic methodology vastly surpasses the limitations of RTB.

It must be noted that programmatic is a certain technology and RTB is just one method to implement this technology.

Main Features of Real-Time Bidding

  1. It is an online auction marketplace for buying and selling impressions in real-time. And these auctions take place in milliseconds.
  2. Real-time bidding programmatic buying is beneficial for both publishers and advertisers. Marketers achieve efficiency by showing their ads to the right audiences and it leads to a decrease in the number of wasted impressions. On the other hand, publishers enhance the value of their ad space and improve direct sales strategy and pricing.

Real-Time Bidding ecosystem is multi-layered and consists of the following components:

  1. Demand Side Platform
  2. Supply Side Platform
  3. Ad Exchanges
  4. Ad Networks
  5. Agency Buying/Trading Desks
  6. Data Partners/Data Providers
  7. Dynamic Creative Optimization Tool
  8. Ad Verification And Brand Protection Platforms

RTB is just a bigger fish in the pond. And the pond is programmatic buying. In a nutshell, RTB is programmatic, but not everything programmatic is RTB.

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