Programmatic advertising, as opposed to conventional (often manual) methods of digital advertising, uses automated technology for media buying (the process of purchasing advertising space). To serve the right user with the right ad at the right time at the right price, programmatic media buying makes use of data insights and algorithms.
Programmatic Media Buying Categorized Into Three Different Types
- Real-time bidding (RTB)– also referred to as an open auction, is the process by which inventory prices are selected through a live auction. This is available to any advertiser or publisher, as the name implies. RTB is regarded as a financially advantageous method of purchasing media with a large audience.
- Private marketplace (PMP)- These are comparable to open auctions, but participation in PMPs is constrained. PMPs are only accessible to chosen advertisers by invitation. Publishers may, however, occasionally use a selection procedure that enables advertisers to request an invitation.
- Programmatic direct:- This is when a publisher bypasses auctions, selling media inventory at a fixed cost per mille (CPM) to an advertiser (or multiple advertisers).
Why Is Programmatic Media Buying Important?
The traditional media buying process is labor-intensive and slow because it typically involves numerous requests for proposals (RFPs), human negotiations, and manual insertion of orders (IOs). Additionally, advertisers have little control over the inventory and placement because ads are bought in bulk.
Check out my other blog for more informationhttps://lynndrea.com/programmatic-targeting-display-ads-for-relevant-traffic/