tipos-programatica

Main types of programmatic advertising.

Let's get to the point: programmatic advertising is not the same as Real Time Bidding.  The main difference is that RTB is one of the ways programmatic advertising can be done. But that difference doesn't explain what's one thing and what's the other, so here you have some definitions that explain both concepts pretty well:

PROGRAMMATIC ADVERTISING

This refers to the automated purchase of ad space.

REAL TIME BIDDING

This referts to the process of buying ad space in real time through a bidding system. 

Once these concepts have been defined, another question comes up: apart from RTB, which ones are the other types of programmatic advertising? So let's take a look at the other ways of doing programmatic advertising.

Types of programmatic advertising.

Programmatic guaranteed.

When it comes to programmatic guaranteed , it's the most similar way to traditional media buying process, since these transactions are made on a one-to-one basis and there are no bids. The publisher sells its ad space directly to the advertiser after the negotiations take place, this is, after determining a fixed CPM and a guaranteed impression volume .

In this case, segmentation is not possible since the ad space is already assigned to a specific advertiser regardless of the user who enters the site. Another thing that can't be done is the optimization of campaigns according to the results obtained.

How does it work?

programmatic-guaranteed

This type of purchase is usually done by advertisers with a considerable budget and that know exactly where they want their ads to appear.

This type is also known as: programmatic direct or automated guaranteed. 

Preferred deals.

With preferred deals, some advertisers (the ones with high priority) have preferred access to the publishers' inventory , but they have to pay a fixed CPM. Advertisers can take a look at the ad inventory, but there is no obligation to buy it. That's why this type of programmatic advertising is also known as programmatic non-guaranteed. 

If the inventory is of the advertiser's interest, they have to bid for it with the rest of advertisers within the group. 

How does it work?

preferred-deals

Private marketplace (PMP).

In this case, publishers set aside some premium inventory for some advertisers. In order to access the ad space from these private marketplaces an invitation is required. They're basically private or closed auctions for some advertisers. 

Digital media segment their ad space according to the type of content offered (for example, a magazine with a section for fitness advice). This way, they can offer their inventory in blocks and reach specific audience segments. 

These packages are offered for a minimum buying price, known as floor price, which advertisers with access to the PMP can bid for. PMPs are usually used by websites with a massive audience.

How does it work?

private-marketplace

Real time bidding.

Also known as open auction or open marketplace, this is the most used programmatic advertising type.

In this case, ad space is available to all advertisers and it's sold to the advertiser with the highest bid. As the name indicates, Real Time Bidding is a process that happens in real time, therefore, the segmentation possibilities here are immense: the advertiser can make the bid in the moment a specific user enters a site.

How does it work?

In RTB, even though the advertiser with the highest bid gets the ad space, it doesn't mean that they'll pay the price they bidded for. This is because RTB works with an auction system called second-price auction - which means that the advertiser with the highest bid pays 0,01 more than the second highest bidder, and the latter pays 0,01 more than the third on and so on. 

In this post we get into more detail about Real Time Bidding.

The advantage of using a platform like RTBMind is that no minimum investment is required, so all businesses can start building and managing their own RTB campaigns without budget being an impediment.

RTBMind is a DSP that allows advertisers to build and manage their own RTB campaigns, with the great advantage of not having a minimum access fee. If you want to know more about RTB, don't hesitate to contact us.