‘By 2020, programmatic ad spend is expected to reach $68.87 billion. That is a growth rate of nearly 4x in just a few years.’
Programmatic advertising exists in a wide range of digital channels, including display, mobile, video and social. This brought on the birth of Real-Time Bidding (RTB), which became the first instance of programmatic advertising. RTB is a way of buying and selling ads through a real-time auction, meaning a transaction is made during the time it takes a webpage to load; around 100 ms. Real-Time Bidding allows for better and quicker targeting, enabling ads to be bought and sold on a per-case basis, meaning only visitors who are in your target audiences will be subjected to the ad.
Programmatic Advertising- the future of ad buying
Automated tools and technologies currently control most by far of social advertising. They control direct transactions and ensures that use automation to improve audience targeting. They grant buyers access to premium video and in-app inventory. Programmatic consistently infer the use of multi-sourced data including real-time systems, formulas, and algorithms to automate the delivery of data-driven, personally-tailored and relevant experiences to customers as they connect with the brand over numerous touchpoints. Such experiences include targeted offerings, messages and content across paid, owned and earned channels.
Programmatic is, in a word, powerful.
It is the process of buying digital ads through automated platforms. It helps advertisers and publishers manage ad buying through an auction rather than negotiations.
Programmatic is a broader term that encompasses RTB. Programmatic technology automates the buying of digital ads, while an RTB auction is one of the programmatic buying methods. Apart from RTB auction, there are also programmatic guaranteed and preferred deals.
It includes the following adtech platforms: ad server, agency trading desk, demand-side platform (DSP), supply-side platform (SSP), data management platform (DMP), ad network, ad exchange, user tracking.
There are 4 main buying methods: open auction RTB, private marketplace, preferred deals, and programmatic guaranteed.