What are the latest trends and innovations in RTB vs programmatic?

The publisher must initiate the setup of first-party data due to the observed decline in third-party data. This shift is poised to have a significant impact on the AdTech industry.

Most of the publishers need to upgrade to the latest open RTB spec. Even some of leading SSP's have not upgraded to RTB 2.6 There is a lot of value for publishers to upgrade to latest open RTB spec Some of the leading publishers are working closely with exchanges to make their data available for buyers to buy via RTB and pmp deals. Publishers are working to increase their inventory on CTV devices. They can see money flowing into CTV pipes

RTB and programmatic advertising are evolving with trends like AI, header bidding, and expanded inventory options. RTB innovations include real-time optimization, increased transparency, and added flexibility. Programmatic advertising is expanding beyond traditional web media to include connected TV, audio, and digital out-of-home. In 2024, programmatic advertising is expected to focus on ROI, with advertisers relying on targeting opportunities, quality media, and supply-path transparency.

RTB and programmatic advertising are revolutionizing digital marketing. RTB is like a lightning-fast auction, targeting each ad impression with precision. Programmatic, on the other hand, is an umbrella that includes RTB, offering a broader strategy for ad placement. Both are key in today's ad tech landscape, shaping how we connect with audiences in real time. Staying updated on these trends is essential for navigating the ever-evolving digital world.

RTB stands for Real Time Bidding. Explaining in layman language here, Lets break it down to : "Real Time" and "Bidding" - Real Time implies that a user opens a webpage or app or any digital content which has an ad space and in the real time while the page is loading , this RTB process starts in the background. - Bidding implies an auction where the buyer ( of adspace ie advertiser / agency ) can place bids which are sent to seller ( of ad space ie publisher) via the auction mediator ( DSP , advertiser server, ad exchange) Highest bidder wins the impression and delivers the ad on the user page.

Programmatic is an Automated way of buying and selling digital inventories, the audience data is enriched with various data layerings ...having SSP's at the publishers side and DSP's at the advertisers side and Ad exchanges in the middle. You can do Programmatic gauranteed deals with individual publishers and publishers can choose to oeprate with selected buyers using PMP(private market places) or you can choose to sell your invetories in open exchange or open market. Programmatic selling/buying brings efficiences & scale for both advertisers and publishers.Most buying in times to come would be either programmatic or via header bidding

Programmatic advertising automates ad buying using algorithms and machine learning. In OTT, it goes beyond real-time auctions. A streaming service might use programmatic to manage its entire ad inventory across shows, times, and viewer segments. It can automatically adjust ad frequency, ensure brand safety, and optimize campaigns. For example, it might limit how often a user sees the same ad across different shows to prevent ad fatigue.

The most important difference between the RTB and the umbrella term of Programmatic ( ie PMPs, guaranteed deals) lies in the manual ground operations required and involved. This might lead to limited inventory access for players who would not have the budget for private deals.

Programmatic advertising automates the buying and selling of online ad space using data and algorithms to target the right audience at the right time. It includes methods like Real-Time Bidding (RTB), private marketplaces (PMPs), preferred deals, and guaranteed deals. PMPs are exclusive auctions for selected advertisers, while guaranteed deals are fixed-price agreements for a set number of ad impressions.

Programmatic advertising is the umbrella term for the entire automated buying process. RTB is a specific tool within that process, where the actual bidding on ad space happens in real-time. Together, they offer a more efficient, targeted, and data-driven approach to online advertising for both advertisers and publishers. Benefits for Publishers: 1. Sell ad inventory efficiently through automation. 2. Earn more revenue by reaching a wider pool of advertisers. 3. Gain insights into advertiser demand for their audience. 4. Reduce reliance on direct sales efforts. 5. Optimize ad pricing based on real-time bidding.

The primary benefits include increased efficiency, better targeting, and improved ROI. These methods offer real-time insights and the ability to adjust campaigns on the fly, ensuring advertisers can optimize their ads to reach the right audience at the right time, thereby reducing wasted impressions.

RTB and Programmatic involves Auction algorithms that companies build based on performance, bidding, contextual information of the page. This goes beyond the human intelligence that can be applied for an optimized bidding auction. The issues will call out the ethical considerations of user data, but algorithms can definitely be built without it.

RTB provides cost efficiency by allowing advertisers to bid for impressions in real-time, reducing wasteful spending. Programmatic offers precision targeting, enabling personalized ad experiences for users. In OTT ads, this means delivering relevant ads based on user preferences and viewing habits, increasing engagement.

Programmatic & RTB has a clear edge as compared to traditional forms of media buying: 1) Scale- It surely brings sclae in buying and as an advertiser you can choose to buy from 100's of relevant platforms/websites and you can include/exclude platforms basis performance 2) Efficiency - The performance would be quite better since you are going contextual and targeting the most relevant audience sets. It delivers your bottom funnel KPI's 3)Agility- you can launch this in a flick of a second 4)Reporting- consolidated and almost real time reporting for optimisation and course correction

Key challenges include complexity, transparency issues, ad fraud, and privacy concerns. The complexity of the ad tech ecosystem can make it difficult for advertisers to track where their ads appear and assess the quality of traffic, while privacy regulations like GDPR and CCPA present compliance hurdles.

The complexity of the system and infrastructure becomes a deterrent for smaller players without budget and support for technological advancements.

Both RTB and programmatic face issues such as fraud and brand safety. Advertisers may face difficulties ensuring their ads appear in appropriate content. In OTT advertising, ads could end up being shown on platforms or content that doesn’t align with the brand's values, causing reputational damage.

We're seeing some game-changing trends in the ever-evolving RTB and programmatic market. Here are the ones I am keeping an eye on:  Privacy-centric advertising is becoming a big deal. With cookies on their way out, the industry is leaning into first-party data and context-based targeting. The rise of CTV and audio programmatic buying is opening up new channels for brands to engage with audiences.  AI & ML are helping create new approaches to bidding and ad placement, making processes more efficient and smarter.  Push towards greater transparency and fraud prevention. The focus on building leaner supply chains also remains unwavering. I believe that staying ahead of the curve makes adapting to a fast pace of change in AdTech/ MarTech easier.

Curation is a growing trend where data and inventory are packaged together and pre-optimized for specific audiences or metrics. This typically happens on the sell-side (SSP) but can also happen on the buy-side (DSP). Common players you'll see in this space include Audigent, Xandr Curate, Index Exchange, OpenX and others.

- AI and ML Integration: Enhancing targeting, optimizing bids, and personalizing ads. - Privacy-Centric Advertising: Shift towards privacy-focused solutions due to increased user privacy concerns. - Programmatic Direct and PMPs: More controlled buying through direct deals for transparency and brand safety. - CTV and OTT Growth: Expanding opportunities in Connected TV and Over-the-Top advertising. - Dynamic Creative Optimization: Real-time adjustment of ads based on user behavior and context. - Supply Path Optimization: Improving efficiency in programmatic buying. - First-Party Data Focus: Valuing first-party data with the decline of third-party cookies. - Voice and Audio Advertising: Emerging trends in voice-activated device advertising.

I believe that one of the notable trends currently is the deprecation of cookies, as many industry players still rely on cookies to run their campaigns. However, Google has already initiated the process of phasing out cookies, presenting a challenge for many companies to choose from a variety of alternatives such as identity solutions, which can be complex. Another significant trend is the use of AI for campaign optimization. Equally important is the evolution of contextual targeting solutions that can help DSPs monetize supply that might otherwise remain unfilled.

Contextual advertising will become more important in the programmatic environment with cookies going away and focus on AI/ML technologies. Players like Verity , Double Verify are constantly working on signals that advertisers can optimize for, while building the DSP campaigns. DCO is something else that I am closely tracking and I feel, can change the dynamics of programmatic intelligence.