Digital marketing services are evolving day by day. Earlier, people assumed that programmatic advertising was accessible only for larger budgets and media agencies. Now, over eighty percent of US marketers do digital display marketing via programmatic advertising.
What is Programmatic Advertising?
Programmatic advertising is the automated bidding of an online ad inventory in real-time. Some other terms for it are programmatic media or programmatic marketing. Publishers and advertisers can sell and buy ad impressions via an automated bidding process. Programmatic advertising is an evolved and sophisticated ad network system. It evolved from traditional ad pooling where publishers would manage premium ad inventory manually. A manual process is time-consuming and would leave out many potential buyers. Programmatic advertising is an amalgamation of machine learning and AI to automate an ad buying process. RTB is one of the ways to achieve the bidding. Digital marketing service providers are now taking it to a commercial level. Now, programmatic advertising spans across digital out-of-home (DOOH), online streaming, video, and voice ads. A programmatic advertising ecosystem has the following components:- Demand Side Platform (DSP)
- Supply Side Platform (SSP)
- Data Management Platform (DMP)
- Ad Exchange
- Servers
- Ad Network
Types of Programmatic Advertising Under Digital marketing services
In 2017, Programmatic advertising attained a transaction of $32.56 billion, with four out every five digital ads resulting from it. But brands and advertisers can carry out this ad transaction in many different ways. Every method has a set of ad delivery rules that dictates the overall buying and selling process.Real-time Bidding (RTB)
Real-time bidding is the most common type of bidding where publishers open ad slots out of their inventory for bidding. A buyer with the highest bid wins the slot. Publishers can use their remnant inventory to generate income out of them. Real-time in this bidding process means that a publisher provides ad slots to the advertisers as they get available. Although advertisers can change their bid willingly, they cannot predetermine the quality of ad inventory. Some other terms for RTB are open auction or open marketplace. Private Marketplace (PMP)
PMP is a closed auction where only invited advertisers can bid in real-time for ad slots. Publishers set aside their premium ad slot for these types of auctions. Many DSPs run private auctions exclusively for their customers. Since it is a premium auction, advertisers have access to the ad slot information. For an advertiser’s access, a Deal ID is required that contains several information pieces for defining things like transparency, priority, and price floor. Publishers and buyers can negotiate the terms and conditions of a deal. This ensures trust and better relations. Preferred Deals
Preferred deals are one-to-one deals. A buyer has a priority access to view the slots before buying before they are made available for auctions. Buyers indulging in these auctions tend to make better buying decisions for ad slots. Publishers can review the quality of ad creative and buyers can cancel their slot subscription anytime. All the terms are pre-negotiated. Programmatic Direct
It is also called Programmatic Guaranteed. Under this, an advertiser buys a reserved inventory presented by a publisher at a fixed price. Publishers can retain either a portion or an entire ad inventory for one or more buyers. This inventory is not for open auctions or other ad deals. A third-party company conducts the transaction process. This includes ensuring ad-space guarantee and regulating terms and conditions for this deal. The rapid rise of self-service tools has opened access for even small brands. Some popular ad exchange platforms include Appnexus, Microsoft Ad Exchange, AOL’s marketplace, and DoubleClick. 
