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The Process of programmatic buying RTB explained

Last Updated On Sunday, Apr 9, 2023 | Written By - Mudit Jain


The Process of programmatic buying RTB explained

Almost every newbie in marketing often refers RTB (Real Time Bidding) with programmatic, but is it absolutely true? Read our article and get clear explanation of all that stuff and why you need to use it asap.

What RTB is about?

It is a technology that allows Advertisers to buy impressions on online auction in real time mode. That is probably a key difference in comparison with traditional process of advertising.

Previous model offered buying a bulk of impressions and a particular place of display. If we don’t talk about specialized portals or forums, the situation can be hardly called convenient as the Advertisers paid for bulk audience where amount of not suitable, non targeted displays could certainly be. Besides, the process itself is quite expensive for Advertisers as networks take some commission and Publishers, in their turn, in fact get less than they could have from direct advertising.

RTB platforms also resolve issues of transparency all business participants see the prices, features of each impression and decide how much they are ready to pay in each particular case.

The process is quick as the wind :-

When a visitor drops into a website, Advertisers are immediately notified who is here: possible location, gender, type of the device he or she uses, approximate age and some other data. Publishers usually state minimum rate for their impressions quite beforehand and the biddings are going. A winner displays his ad. All the process takes less time than a wink as the magic happens when the page is loaded and finished when the ad is displayed. And all the mess is repeated as soon as a new visitor is detected.

As you see, it is not just quickly, it is lightning fast. And all it became possible due to complex technological solutions, as even thousands of humans cannot cope with it in such a pace.

Are there any benefits?

Sure, there are! Here just some of the most remarkable:

  • lower costs on advertising for brand owners.
  • transparency of the process.
  • openness to everyone as there are very moderate requirements about traffic.
  • even 10$ is enough to start your first campaign.
  • focus on target audience only.
  • positive treatment from users as the ads become helpful and related to their interests.

Does RTB mean the same as programmatic?

It would be wrong to see the subject matter from this point. However, the answer is partially true.

Correct vision is that RTB is a part of programmatic advertising, one variant of realization.

Why it is so? Some platforms may use programmatic technology, but have nothing in common with auctions. One of the simplest cases is preferred deal. It means that Publishers sell their impressions for a specially pre-arranged price to a particular Advertiser and all of them are bought in real time mode. No biddings at all, but it is also programmatic.

This method also helps Publishers to cope with their fears about lower incomes in comparison with traditional advertising. The price on biddings could have been higher, of course, but you have a stable flow of money on medium rates that is likely to remain the same sum in average, as sometimes impressions are sold at high prices while there also moments when they are offered almost for nothing.

Are you still thinking?

Yes, we both know that old process was far from perfect, but at least you could guess the rules and new all the pitfalls. New system seems tempting, but too good to be true? There is no shame to use them both and compare. At least, you should try until your competitors haven’t outcompeted yet.

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