What is Programmatic Advertising? How it is different from Real Time Bidding?

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FAQs About Programmatic Media Buying

Programmatic Media buying has tremendously changed the way online advertising used to work. But, there’s still confusion around what it is. Here are some Frequently Asked Questions about Programmatic Media Trading and my answers in plain English:


What is programmatic Media Buying?

Programmatic” media buying typically refers to software or programme, that helps in purchasing digital media for advertising. Opposing to the traditional process that used to involve RFPs, human negotiations for ad space and manual ad insertion orders, it’s using machines and code, a predefined algorithm, to buy and sell ad space online.


Why does programmatic advertising matter?

Operational Efficiency and Increased Reach. Prior to programmatic media buying solutions, digital ads were bought and sold by individual ad buyers and salesperson, which was at low scale, expensive and unreliable at times.

Programmatic advertising technology revolutionise media buying system and made it more efficient in terms of money and operations.


Is Programmatic Media Buying same as Real-Time Bidding?


What is the Difference between Programmatic Media Buying and Real Time Bidding?

No, Real-time bidding is a type of Programmatic Media Buying, but it isn’t the only one. RTB refers to the purchase of ads through real-time auctions, but in addition, programmatic platform also allows advertisers to buy guaranteed ad impressions in advance from specific publisher sites. This method of buying is often referred to as “programmatic direct”.


Is programmatic “the future of ad buying”?

Indeed, yes. – according to a study by online marketing giant Publics Media, about 67% of Digital Display ads will be traded programmatically. The US is by far the largest programmatic market, valued at US$32.6bn followed by China at US$5.3bn.


Does Programmatic Advertising require any Human interaction?

Yes. Technology is created to handle some menial tasks efficiently and productively. It always needs Human interaction and monitoring for ensure the process is going smoothly. Programmatic technology will probably mean there are fewer ad buyers in the world, but it also allows both marketers and sellers to spend more of their time planning sophisticated and customized campaigns, instead of getting bogged down in bureaucracy.

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