What are RTB, Programmatic Direct and Private Marketplaces?

by | Oct 3, 2016

Programmatic Ad Buying is here to automate and make your life way easier– here are 3 things that’ll up your game, and make your ad buying experience even more fluid.

It’s no secret that Programmatic Ad Buying is the real-time solution to your ad buying woes – automating the entire ad buying, placement, and optimization process for you, leaving you more time to focus-in on the important things.

Things like your Quality Score, how optimized your landing page is, ensuring you’re taking advantage of Extended Text Ads, and optimizing said ads for mobile devices.

If you need any convincing on the matter, know that by 2018, it’s estimated by the IAB that programmatic ad spend will have grown from 28% in 2013 to over 80% of marketing spend.

If you’re not on board yet, then you should definitely hop aboard before it’s too late to take advantage of efficiency with your time and ad budget.

Programmatic Ad Buying – Overview 

Simply put, Programmatic Ad Buying automates the process of choosing what audience you show your advertisements to, and segment accordingly by age, gender, geography, and more. Why?

With your ad budget, you’re optimizing spend in the areas that give the highest ROI, and cutting back in the areas that aren’t doing as much for your business. Sure, it’s different than traditional ad spending; it’s tighter, more efficient, and saves you both time and money.

Based off a series of algorithms that work in real-time, it doesn’t rely on manual insertions and manual trading; the ad space is bought via the bidding system.

Long story short–programmatic ad buying is here to stay, and now’s the best time to get the jump on it. How?

By reading onwards, and getting the jump on 3 things:

  1. Real-Time Bidding (RTB)
  2. Programmatic Direct
  3. Private Marketplaces

These are 3 elements of programmatic ad buying that most people completely overlook, and miss out on. you’ll nail the programmatic ad buying game, guaranteed.

Photo by Clément H on Unsplash

Real-Time Bidding

Real-time bidding consists of computer-run, real-time interactions – where the highest bid wins the impression. It’s hands-down the most cost-effective way of buying with access to the largest audience!

The bidding is blind, and publishers make their inventory for advertisers (you!) to bid on.

You set the parameters for the bid price, network reach, and demographic segments–and away you go; optimization happens at the impression level for the best bid possible on the best end result.

Why RTB? Jeff Green, CEO & Founder of The Trade Desk explains it best:

“Real-Time Bidding means that every online ad impression can be evaluated, bought, and sold, all individually, and all instantaneously. It is the future of all online advertising and enables exchanges and buyers to work together to programmatically sell and place bids on ads.”

Really, it’s a win-win for publishers and advertisers alike. 

For more quotes from top-dogs in the programmatic ad buying space, check out this awesome article.

Programmatic Direct

Directly speaking, Programmatic Direct automates direct ad buys for specific campaigns.

Indirectly speaking, it’s different than Real-Time Bidding, in the sense that it’s a guaranteed ad buy that doesn’t involve an auction–it’s direct, and to the point.

The choice between the two depends on your industry, what your goals are, and how you’d like to go about it. Real-Time Bidding involves a lot more segmentation and control over your bidding choices, while Programmatic Direct is more, well…direct, with less control.

Programmatic Direct encompasses guaranteed and non-guaranteed contacts, and revolves around guaranteed buys.


Private Marketplaces (PMP)

PMP gives the power to the advertiser, as to whether or not you want to choose specific inventory.

Known as a private-auction or “invitation-only,” PMP encompasses unreserved inventory among select buyers, chosen via a Whitelist/Blocklist.

The biggest thing with PMP is transparency; publishers can choose to reveal specific pieces of information on inventory, and which sites ads will run on – in addition to the Deal ID’s issued.

Deal ID: the unique identifier that represents the deal made between publisher and advertiser within the auction environment, allowing the advertiser to reach premium placements, on-demand, through your DSP platform.

The best part? You can apply your first-party data to any and all placements made. Basically, all the success you’ve achieved in Open Exchanges can be applied here, across premium placements.

PMP is premium access at the lowest price, without any time or money wasted. It’s efficient, transparent, and can even replace the need for a direct sales team with tech.

Programmatic Ad Buying: Bottom Line

To reiterate, programmatic ad buying is the future; whether you choose to engage in open-auction, real-time bidding, within a private marketplace for premium access, or programmatic direct for less hassle–you’re on the winning side, with programmatic ad buying.

Let the bidding begin!



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