Hi there! So, with this you can wave goodbye to all those hassles caused by just trying to decode the nitty-gritties of programmatic advertising. In a nutshell you will learn how programmatic advertising differs in concept from Real-Time Bidding (RTB).
I’ve dealt with this and totally get it. Like deciphering the concept of these two were not enough, the journey of confusion afterwards can be quite a challenge. With the similarity in too many ways, many find it hard to actually comprehend their differences.
The only difference is, “RTB is Programmatic but Programmatic advertising is not completely RTB”. Let us digest what the statement means with a brief overview of the two concepts and the subtle difference lying in between!
What’s the difference between programmatic ads and RTB?
Before we move onto the differences, let’s all make sure we understand the concept of the two.
Programmatic advertising is a technology enabled system that is methodical and process oriented which delivers efficient results. In programmatic, advertisers are armored with defining the metrics like demographics, user behaviour, etc., so that they can reach the right audience at the right time. This in turn results in better connection boosting conversions. On the other hand publishers get their desired price for their ad inventory.
However with real-time bidding, it is a computer aided real-time auction of ad inventories through an ad exchange from which the advertisers buy the media. If the listed ad inventory at the exchange fits with the defined criteria of advertisers, they buy the media to reach the right audience at a price within their budget.
Evolution of the programmatic ecosystem
Wait a minute! Don’t both concepts sound similar? Yes it does. The variations in user behaviour and the multi-channel buying trends require advertisers to act swiftly and cater to the target market across audience’s user devices like smartphone, tablets and PCs. This envisaged a different set of needs that gave rise to other types of programmatic buying namely, guaranteed buying and private marketplaces. So it is clear that programmatic advertising encompasses not only RTB as a means, but also other ways of media buying mentioned.
And the subtle difference is…
The subtlety of difference lies in the fact that all RTB transactions are programmatic but not all programmatic ads go through RTB transactions. Apart from RTB, there are other ways to buy ad space such as traditional guaranteed buying of inventory from a particular website for a period of time or a number of impressions. Concepts demystified? If the subtleties are still too strong, fret not, the below illustration can help.
From this you can tell that RTB is just one of the ways to buy media in programmatic advertising in addition to other types of media buying channels.
Irrespective of you being a publisher, advertiser or ad tech enthusiast, the concepts of RTB vs programmatic advertising is simple but understanding those may not be all that easy. But investing some time, by exploring the system and its concepts can make implementation effortless.
In analyzing future opportunities of programmatic and RTB, we see programmatic is not limited to RTB transactions being just an ad inventory exchange provider. It’s only a matter of time that programmatic advertising takes on the world by it’s a full-fledged effective automated targeting system. Keep exploring.
Great days ahead!