Could you imagine a scenario where the content we frequently browse on the internet correlates with the relevant advertisements we encounter the following day? There are groups of data experts who examine the “most searched data” from all across the regions of the world. Based on this data, the data experts recommend the type of advertisement to create on a specific channel and present similar ads to the user. In the digital advertising industry, real-time bidding and programmatic bidding are two terms that remain most popular because they determine the nature of the audience and their demands. In this blog, we will discuss the differences between real-time bidding and programmatic bidding.
What are real-time bidding and programmatic bidding?
Real-time bidding
In digital advertising, the term "real-time bidding" refers to the process of buying and selling advertising space based on real-time user data. RTB is the most effective and highly efficient method in the digital advertising space because it cuts costs, requires no human intervention, is scalable, and ensures information transparency between users and publishers.
How does real-time bidding work?
Simply put, when a user clicks on an ad on a website, it generates an impression and notifies the publisher. The advertiser then sends an auction notification to the viewer, who has already reviewed the page. Once they respond to the auction, the bids with the highest number secure the space to display ads.
Programmatic advertising
On the other hand, programmatic advertising, as the name suggests, utilized AI and machine learning for buying and selling in the digital advertising space. This advertising method is also highly efficient; it automatically examines demographics, reaches a wide range of audiences, offers transparency, and, if required, allows you to monitor or optimize the ads accordingly.
How does programmatic advertising work?
Once you set up the campaign, then the programmatic advertising automatically creates the demographic data required. The ad will then be placed across a variety of channels, websites, social media platforms, and more. Programmatic advertising employs various methods such as real-time bidding (RTB), programmatic marketing agreements, and marketplaces to facilitate auction transactions. As long as you don't stop the ads, you will continue to receive data from them.
What are the advantages and disadvantages of real-time bidding or programmatic advertising?
Real-time bidding: pros
- Real-time bidding allows bidding in real time and makes the process highly efficient and effective.
- Real-time bidding is highly cost-effective because you will get exact pricing due to purchasing in real-time.
- Real-time targets the relevant audience on the website.
- This offers transparency and facilitates scaling the overall performance across multiple channels.
Real-time bidding: Cons
- Sometimes, real-time bidding can seem complex to users and advertisers, making it difficult to understand specific requirements.
- In the online world, it is crucial to keep yourself protected from frauds.
Programmatic advertising: pros
- The best advantage of using programmatic advertising is that it leverages the power of machine learning and AI to automate the overall ad campaigns.
- The system is highly efficient, faster, and targets a wider audience.
- The programmatic advertising is data-driven and suggests relevant data based on the real-time insights.
- Programmatic advertising uses a variety of methods or techniques to gather word-of-mouth attention. Programmatic advertising includes RTB, programmatic advertising, and marketplaces.
Programmatic advertising: Cons
- Address privacy concerns and safeguard yourself against online scams or frauds.
Conclusion
Real-time bidding and programmatic advertising are two bidding techniques that you can use to improve your campaign's performance. Choose the right type of bidding technique for your next ad campaign. Both methods serve different purposes, allowing the user to reap the benefits. Stay connected with us to learn more about the hottest topics in digital marketing.