Programmatic advertising and real-time bidding are important terms of the online advertising ecosystem and although they are sometimes used interchangeably, they are not identical.
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The main advantage that RTB offers to both publishers and advertisers is efficiency — as an automated process, RTB eliminates the negotiations involved in traditional ad deals and significantly reduces the time it takes to buy and sell inventory.
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Brand safety: Due to the randomized nature of RTB, there is a chance your content could appear next to content that doesn’t align with your brand.
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RTB auction is similar to the functioning of financial markets and their exchanges, except that ad impressions are being traded instead of stocks or fixed income securities.
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The ad exchange then sends queries to the demand side platforms (DSP), asking for advertisers’ bids. Demand side platform bids on impression based on its perceived value for the advertiser.
User privacy: RTB allows advertisers to home in on specific users, which has created concerns over the security of sensitive user data. Anonymous audience segmentation solutions like Emodo Audiences strengthen respect for user privacy without sacrificing targeting accuracy.