An Unproblematic Guide to Programmatic Advertising

More things are getting digitized with the passing of each day. New technologies are arriving and the old ones are reborn. In this era, digital advertising has taken to another level and is called Programmatic Advertising. Programmatic Advertising is an automated method of digital advertising. The purchase of ad spaces and the placement of the ads is automated and facilitated by programs. This novel technique is a massive time saver as everything from bidding to purchasing takes place within seconds. In order to understand the aspects of programmatic advertising it is crucial to get familiar with some jargon.


What is RTB?

Real-Time Bidding, also known as open auction, is a digital space where the inventory price is decided through an auction. As the name suggests, it happens in real-time and any advertiser or publisher can bid in this space. It is considered to be one of the most cost-effective ways in which you can gain a large audience to buy your inventory slot or have multiple options to choose from if you are a buyer.


What is DSP?

A demand-Side Platform is software that enables agencies or advertisers to buy inventory slots. It is in this software, that actual buying takes place. After the bidding in RTB, the transactions take place through DSP software.



Understanding the process of Programmatic Advertising is made easier now that an idea about RTB and DSP is gained.  The initial stage is the placement of ads through RTB. The advertisers announce their inventory space for auction in the RTB. There are also other ways in which the slots can be sold, like PMP and PD. An advantage gained by using RTB is the management of transactions between the supply side and the demand side. In the next stage, the seller sets certain criteria for buying through DSP. After the suitable buyer and the seller is matched, the automated process of purchasing and placing (ads) takes place. This time taken to finish this whole process is the time taken for a requested webpage to load in the browser.


Programmatic Advertising is the modern branch of digital marketing. This is a technique constructed with the complete understanding that time is money. A manual time-consuming process is now an automated superfast digital market. In a way, for saving time and money from being wasted on the search for appropriate inventory spaces, Programmatic Advertising is the key.

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