Programmatic media buying or programmatic advertising is understood as the use of automated technology needed for media buying. This is different from the usual methods of digital marketing and advertising. Programmatic media also uses special data insights as well as algorithms in order to target the right users at the right price, right place, and time. In order to understand what programmatic media buying is, you have to understand its various terminologies that are related to the process.
Programmatic Media Buying Is Of Three Different Types
Real-time bidding: Also known as RTB, this occurs when inventory prices are decided through auctions in real time. Just like the name suggests, it could be open to all kinds of publishers and advertisers. RTB is considered to be a cost-effective method to connect with a larger audience.
Private marketplace: This is also known as PMP and it is similar to other open auctions. However, PMP also has its own set of restrictions in terms of who can participate. Very few selected advertisers are given access. But, in some cases, publishers could also have a selection process that allows your advertiser to apply for the invitation as well.
Programmatic direct: This happens when your publisher bypasses any auction and sells the media inventory at a specific price at a specific CPM to the advertiser.
What Are The Three Main Components Of A Programmatic Ecosystem?
Sell Side Platform: This special software allows publishers to display and sell mobile, video ad impressions, etc to potential buyers in real-time. It also includes ad exchanges, DSPs, networks, etc. It also gives publishers great access and control of the CPM and inventories.
Demand-side platform: This is software that enables agencies and advertisers to buy ad inventory cross-platform.
Ad Exchanger: This is how the supply side feeds the inventory into the ad exchanges. It connects to the ad exchanges, networks, and agencies which enable advertisers to publish, sell and buy prices within the ad space. Inventory prices may also be agreed upon with the help of a bidding process.
