GUIDES
by Roman Vrublivskyi
Posted on Apr 5, 2024
From RTBs to PMPs: A Guide to Types of Programmatic Advertising
by Roman Vrublivskyi
by Roman Vrublivskyi
Programmatic technology allows for automating the process of buying and selling ad space, which makes it preferable for both marketers and publishers. However, real-time bidding, which is most often associated with programmatic, is not the only option available. In this guide, we will review different types of programmatic advertising and explore their benefits and challenges.
So, here are four programmatic advertising types that are important to be aware of.
Being the most common form of programmatic, RTB implies purchasing and selling ad inventory via a real-time auction. When an impression opportunity arises, advertisers compete for the ad space, and the winning advertisement is then delivered to a publisher and displayed to users.
PMP also operates on an auction basis, but only selected marketers can participate. Such a marketplace can be invite-only, which implies access to the premium ad inventory. Alternatively, it can be available to all the advertisers who meet publishers’ requirements. This ensures a wider range of inventory, but its quality may vary.
Programmatic guaranteed removes the ad exchange from the process of buying and selling ad inventory as the fundament of a programmatic advertising ecosystem. Advertisers purchase it directly from publishers. Thus, a marketer agrees to buy a certain number of impressions, while a publisher agrees to deliver the specified number of impressions for a fixed price.
This model implies a publisher providing a buyer with preferential access to their ad inventory during an auction (after negotiating pricing and other conditions). This means that a selected advertiser will be the first in the line when the auction starts.
As the programmatic landscape keeps evolving, it is crucial to stay on top of trends. Here they are.
Header bidding means offering ad inventory to multiple advertisers at once instead of offering it first to the top-tier buyers, then to the next tier, and so on. Publishers benefit from increased competition and the maximum value of inventory, while advertisers have equal opportunities.
SPO is about identifying the number of intermediaries between a demand-side platform (DSP) and a publisher and optimizing this path to make it as short and profitable as possible. For instance, this can involve establishing direct connections with publishers, working only with a selected number of supply-side platforms, etc. Adopting SPO also allows advertisers to avoid duplicated auctions during header bidding.
The operation of programmatic advertising heavily relies on AI, but there are many more applications entering the stage. For instance, AI in programmatic can be used for content generation, improved precision targeting and personalization, more effective quality assurance, and even programmatic campaign planning. It is important to keep an eye on its rapid advancements that bring benefits both to marketers and publishers.
For ad exchange owners, it is crucial to meet the needs of advertisers and publishers to keep their platforms profitable. Using white-label solutions like SmartHub can significantly simplify this task.
SmartHub already supports the following integration options:
Besides, it offers multiple programmatic targeting options, as well as different types of programmatic ads, including banner, video, audio, native, push, pop, and CTV ads.
With SmartHub, you do not have to build an ad exchange platform from scratch. Instead, you can start earning on media trading after a week or a bit more if you have custom requirements. And since the platform is regularly updated with new functionalities, you can rest assured that your ad exchange will remain competitive.
Does SmartHub seem to be the right solution? Let’s get in touch!
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