Programmatic vs Real Time Bidding

Image: all rights reserved to digital clarity.com

Image: all rights reserved to digital clarity.com

Consulting with a plethora of digital media planners, buyers, managers and directors, the confusion between programmatic and real-time bidding (RTB) doesn’t seem to cease. But the differentiation, however, is key to identifying the opportunities that lie within programmatic marketing.

RTB came into existence at the emergence of ad exchanges, an ad tech advancement that allowed for the trading of online media in an auction based environment. The core benefit of this advancement is to provide media buyers with access to real-time inventory. And with the rapid growth of RTB, which is a fundamental feature within the programmatic realm, RTB offers buyers scale across range of publishing brands, verticals and channels.

But when the digital landscape is as dynamic, fluid and deluged with data as it is now, ad techs needed to evolve. As Internet users we now transcend across devices and content channels without thought about the brands. With the rise in crowdsourcing and user-generated-content, consumers have relinquished control from brands. Now, we only care about our experiences with brands.

Programmatic is an amalgamation of systems, processes and machine-learnings that point towards an outcome of centralizing data, producing insightful intelligence against that data and making it actionable in real-time. Media agencies/owners can also leverage on the customer intelligence and advance analytics that’s being produced in line with the manual, human input of a campaign aim.

Programmatic is used in the making of the next-generation demand-side-platforms (DSPs). These platforms are often also referred to as programmatic marketing platforms. There is a combination of three core elements to these ad tech platforms utilising programmatic:

  1. The use of consumer data and business rules (algorithms) to make predictive buying decisions based on a probability model
  2. The adoption of a real-time decisioning platform to transact and deliver the right message to the consumer at the right time
  3. The measurement and tailoring of every interaction to consumers at an impression level to make this data actionable insight

And for most next-generation DSPs, these capabilities are available across digital channels such as display, video, social media and mobile platforms.

So for marketers wanting to leverage from the latest ad tech advancements to reach their forever-growing fragmented audiences, knowing the opportunities that programmatic marketing possesses over RTB is absolutely crucial.

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