Advertisers determine the price by participating in the bidding process. Additionally, with an ad exchange, advertisers gain visibility regarding where their ads will appear.
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Is programmatic advertising different than real-time bidding? There is some overlap, but the words RTB and programmatic can’t be used interchangeably. Programmatic advertising is a form of purchasing ads that utilize technology to automate and streamline the process. However, programmatic advertising isn’t completely automated, as there needs to be a person to define the parameters of the advertising campaign, such as target audience, geographic area and desired ad format (video, native, display, etc.
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Real-time bidding can be compared to a stock market, where the amount of demand at the moment determines the price of a stock. With real-time bidding, publishers set the floor price for an ad, but the demand still determines the final price.
Brand safety has become an important concern for advertisers in recent years and some participants offer advertisers better brand safety through RTB by using technologies which prevent their advertising content being shown on unsuitable websites or next to inappropriate content.
Because it’s a method and not a tool, RTB can be achieved on platforms including leading ad exchanges, DSPs, and SSPs. Because of this, finding an ideal platform depends on whether you’re acting as an advertiser or publisher. Examples of platforms include:
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Ad fraud happens when scammers (or any parties with ill intent) try to trick digital ad networks by falsifying impressions and clicks using bots. Obviously, bots aren’t real people — so they aren’t potential buyers you can eventually convert into customers.
Demand-side platforms play a similar role for advertisers as SSPs do for publishers. They are automation tools which allow advertisers to effectively manage, analyse, optimize and run their advertising campaigns over many different networks.
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