Programmatic advertising is defined as the use of an automated online ad buying system, i.e. it is the type of advertising that offers users ads tailored to their tastes and needs. Now we'll tell you much more!
The purchase of programmatic advertising is carried out through an automatic procedure of buying/selling in auctions or bids in real time (called real time bidding or RTB) and the use of the well-known Big Data. In this process, advertising space is not bought as it would normally be done in the traditional way, but people are bought.
By means of the famous cookies, browsing data is collected that help companies to segment the audience and predict user behaviour.
-Real-time bidding (RTB) - Also known as open auction or open market, real-time bidding (RTB) has become synonymous with programmatic media buying mainly due to its widespread use. Advertising space is open to all in RTB and is sold through a type of open auction. The highest bidder gets the spot. The entire process takes place in real time and advertisers can choose advertising space as it becomes available.
-Private Marketplace (PMP): The private marketplace works similarly to RTB, except that it is available to advertisers by invitation only. In private or closed auctions, publishers typically reserve premium ad inventory reserved only for selected advertisers. Many DSPs have their own PMPs that are accessible exclusively to DSP users/clients.
-Preferred bidding: In preferred bidding, advertisers can choose ad inventory at a fixed price even before it becomes available in private markets and then in open auctions. Also known as spot buying, negotiating preferred deals takes a refined approach, as both parties agree on price, targeting, etc. in advance. In addition, the advertiser receives an advance on the publisher's ad inventory and is not obligated to make any purchase. Advertisers can use a DSP to understand their audience and determine whether to buy the ad impression.
-Guaranteed programmatic - Guaranteed programmatic, also known as direct programmatic or automated guaranteed programmatic, follows the traditional media buying approach. Here, the advertiser and publisher negotiate terms on a one-to-one basis. Guaranteed programmatic gives advertisers choice in terms of ad inventory, pricing, audience targeting and frequency capping.