Programmatic Advertising and RTB are not the same thing – don’t confuse them

For beginning businessmen there are many confusing things in business. One of them is difference between Real-Time Bidding and programmatic advertising. They think that these are similar things, but they are not. This is a text that will help them to find a difference between them.

Programmatic is an automated process of buying advertising, inventory. Inventory is a digital space like banners, videos. All you need is to set up settings in the interface of advertising system and then the process will do everything, according to your selected options. This is a platform for interacting between advertiser and advertising buyer. Programmatic is an alternative to manual buying and selling of advertising when advertiser and buyer have to communicate with each other and talk about price, time of placing an ad and other stipulations. Still, with the development of internet marketing and business, it becomes more and more uncomfortable for a manual work. There are many young and new small beginning businesses that begin to work in internet and contacting all of them is quite difficult.

Characteristics of programmatic:

  • They fully automate the process of buying media content and advertisements for placing them on digital platforms.
  • Because of the automated technologies there is no need in humans. That means that it can’t make a mistake or struggle with human factor.
  • The process loses all the annoying routine.

RTB is an auction for advertisers where they are making stakes against one another on the platforms like DSP(Demand-side platform) and with help from these platforms they are deciding, do they want to place an advertising on the proposed platforms or not. RTB is one of the components of Programmatic.

Characteristics of RTB

  • The auction begins right after you enter the website.
  • The highest stake wins
  • The auction is automated

RTB consists three main elements:

  • Advertisers, who are using RTB to make the process of selling and buying ads easier and to control the efficiency of their advertising campaign
  • Ad exchange is a platform for cooperation and interactions between users.
  • Owners of advertising space, who are using SSP(Supply-side platform) for controlling their ad space and maximizing the price of it.

With the help of cookies, it is much easier for SSP to create a portrait of potential client that becomes a product for an auction.

Many popular companies keep a part of the advertising space on a open market, so that you can buy for solid money an advertisement there and make your brand much more recognizable.

So, now you know the difference between the programmatic and RTB. Basically, they both are two sides of one coin. Also, they are a perfect way to minimize your budget in advertising sphere. And it will make your work a lot easier without the loss of efficiency.

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