RTB and Programmatic Advertisement can be a little confusing, RTB only represents a part of Programmatic Advertising but these two topics can not be related nor are they interchangeable. For those who are not aware of what, Programmatic Advertising is, we have separate content regarding the whole topic.
What is RTB (Real-Time Bidding)?
So real-time bidding is a form of Programmatic buying and means exactly what the name implies, RTB allows the publishers to monetize their website by running ads on the available area present on their website and then sell it to buyers through an auction system.
Over time the technology developed into a huge system that covers most of the part by minimizing error and maximizing trading scale and performance.
With real-time bidding, your network can receive and review pre-filtered inventory to establish and execute bids.
- Pretargeting inventory delivery specification
The system issues filtered bid requests based on the Pretargeting settings. These requests include targeting details like day parting, language, location, and other factors. The maximum number of requests that your system can handle can be specified.
- You get filtered ad call specifications. Your system receives the pursuing parameters:
- The referral URL in the HTTP header (for branded websites)
- Targeting data, including geographic and vertical
- IP address truncated for the user (IPV4 and IPV6)
- User cookie ID with encryption
- Limits on ad units, including prohibited advertisers, creative genres, or product verticals.
- Your system examines the ad call, adds more targeted information, and then submits your bid.
- If submitted, the bid includes the following compromise.
- CPM bid
- Google hosted creative ID
Why is Real-Time Bidding important?
For advertisers: RTB means more streamlined, efficient, and targeted buying. It provides them with the ability to fine-tune targeting and focus on the most relevant inventory resulting in higher ROI. Ultimately users see more relevant ads.
For publishers: RTB increases revenue and fills rates by opening inventory to a wider variety of buyers in a competitive auction. Finally, publishers gain visibility of who is buying which inventory and can leverage this knowledge to charge more for their premium placements.
Read this Article: What is Header-Bidding?
So what is the Real Difference between RTB and Programmatic Advertising?
Programmatic deals occur one on one between a publisher and an advertiser. However, the platforms outlined above automatically distribute the ads.
RTB on the other hand is accomplished on a much larger scale, with potentially thousands of publishers competing for one publisher ad unit. For that reason, RTB can be affordable and easier to execute but programmatic is direct and yield more high-quality ads.
Programmatic is an informational tool that helps advertisers decide if they are interested in purchasing inventory space. RTB is one way to purchase. It is possible for an advertiser to use programmatic without using RTB, whereas programmatic direct is a term that applies to more traditional buying with the use of programmatic technology.
One minor issue, like all new technology, has to be pulled along the way because programmatic and RTB is a partnership between publisher and advertiser, the buy side and the sell side, the technology has to be in place in order for the exchange to go smoothly. Publishers looking to stay up to speed in this tech industry should investigate the benefits of Programmatic and RTB as a means of selling their ad inventory to advertisers. The goal of every publisher is to increase ad revenues and these two technologies will definitely take you there.