Programmatic advertising is the use of software to intelligently purchase online ad inventory. Since the advertising inventory (the volume of advertising space available) is increasing day by day, the programmatic is designed to eliminate the human element involved in the purchase of multimedia spaces. It can work alongside traditional media buying, or it can eliminate this practice altogether. Programmatic allows advertisers to automatically purchase ad inventory based on their particular goals, the audiences they want to attract, and when they want to attract them.
The RTB, originally designed to help publishers sell remaining inventory to advertisers, is now used to sell all types of inventory, including premium inventory. Automatic assurance can be considered a fifth type of offer, although modern descriptions of programmatic advertising offers often overlook this type of offer or group its functionalities with programmatically guaranteed offers. In modern digital advertising, both programmatic and non-programmatic ad buying methods are used to take advantage of different advantages and achieve different objectives. Another key difference between manual buying and programmatic media buying is the speed with which we can start and modify the campaign when it's running.
Visibility is a crucial element when it comes to bundling additional segmentation across all programmatic activity, and is often overlooked by advertisers. In addition, when it comes to buying multimedia content manually and without using programmatic platforms, every change made to the campaign has to go through the publisher's ADoPS team, which can take a few days to implement. The key takeaway from this example is that “bid” is not a term exclusive to programmatic advertising “auctions”; a “bid” is simply the maximum amount an advertiser is willing to pay for an impression, regardless of whether or not it takes place in an auction environment. While some companies use the full range of programmatic ads, others maintain a simple strategy and use only the components they need.
By analyzing the account structure and comparing it with your historical source data, you can identify the correct bidding method for each of the individual segments. In its simplistic form, there are two ways to classify any programmatic activity: the remarketing activity and the prospecting activity. In the context of programmatic advertising, RTB is associated with open and private markets, in which advertisers compete for impressions by bidding for them. This means that buying advertising space is now much easier to manage, as programmatic minimizes the level of human intervention needed.
If an advertiser bids above the minimum price for the printing of an ad, that advertiser's offer is accepted as a liquidation price and the auction closes before it reaches an open market to which the publisher can be connected. While programmatically guaranteed offers are a form of “bulk buying” of premium ad impressions in a kind of “bundle”, once the publisher and the advertiser reach an agreement, the ads are not immediately placed throughout the publisher's content. Direct programmatic advertising is very similar to the way media was bought and sold before the Internet and even at the beginning of online advertising, but it offers more scalability thanks to the use of advertising technology. Programmatic advertising and real-time bidding are designed to make it easier and more effective to purchase that inventory.