As online advertising technology seeks development, new approaches are continuously being tested to create abilities around the buying of ad space. Lately, media buyers are moving towards the programmatic buying and attaching their online advertising tool strap to it. Many agencies are leveraging tech partners with access to ad exchanges, while others are choosing their own improved trading desks which will allow them to buy media for themselves.
What Is Real Time Bidding (RTB)
Real Time Bidding (RTB) signifies the method of bidding and valuing online for an ad impression in real time. It is an online process through which the online media marketplaces works, where exchanges are made between an online publisher, i.e. the seller and the advertiser, i.e. the buyer. A popular similarity underlines between the stock market and media marketplace: in the stock market how shares become available for the buyers and they have to compete with each other, with the stock being sold to the highest bidder, same applies to the media marketplace as well.
Programmatic buying is very influential for advertisers because it automates all of the processes that used to give them headaches. With RTB, a buyer can set parameters such as network reach and bid price easily. A programmatic buy will layer these parameters with geographical, behavioral or audience data all within the same platform.
How Is The Quality Of Programmatic Advertising Improving?
Many recent articles and blogs have described programmatic advertising as being in the middle of a malicious cycle, where an ambush of non-human traffic and non-viewable inventory has a latent feature to scare away advertisers and quality publishers and prevent its growth.
However, the industry is responding fast and turning a possibly malicious cycle into a righteous one. Instead of solving the mere problems and doing damage control, the move to human, viewable inventory is building the base for programmatic advertising’s next big leap of growth, which should take the industry towards the next stage of improvement and far beyond.
The quality of real time bidding or RTB traffic and inventory is improving swiftly. And, as it does, we are going to witness the green sprouts of a righteous cycle, which will reinforce the programmatic advertising’s base with the hefty budgets of brand marketers.
Current Trend In Programmatic Industry
There is a huge amount of revenue involved and the expenses on digital advertising has amplified year on year. In 2016, the programmatic outlay has increased even further. A rise in expenses will also mean an increase in the competition. Automated media planning via ad exchanges and DSPs provides enormous assistances to both direct response and brand advertisers. Buyers can influence third party data to automatically pick impressions and optimize at the basic level.
Header bidding is one of the most unconventional and technically urbane examples of programmatic advertising that started to get popular among the publishers in the year 2015. Header bidding still faces a lot of trials, mostly regarding usability. But, in the year 2016 to overcome these problems advertisers, as well as publishers realized the betterment of this technology. Due to improvements in marketing technology, marketers are concentrating their efforts of the ROI generated. Marketers are moving their focus towards display advertising campaigns away from awareness and towards ROI.
Future Of RTB
As the technology advances, buyer approach towards programmatic buying will become more polished. Lately, an advanced ecosystem has formed around it with dedicated providers leading the way and some superior agencies building internal platforms. In the future programmatic buying will ultimately have a dominant market share of online display buying. With the addition of RTB to social networks like Facebook, Twitter, LinkedIn new strategies will present themselves that weren’t formerly possible. Like many digital advertising trends, it has evolved rapidly to become an essential tool. If you want to learn more about it, click here for further information.