Wednesday, January 4, 2023

Programmatic Real-Time Bidding vs PG Deal

Real-time bidding (RTB) and programmatic guaranteed (PG) deals are two of the most popular programmatic advertising methods used by marketers today. They both offer advantages and disadvantages, so understanding the differences between them can help marketers choose the best method for their campaigns.

Real-time bidding is an auction-style system that allows buyers to bid on and purchase digital advertising space in real-time. The process involves buyers and sellers bidding on ad space in a blind auction, with the highest bidder winning the placement. The benefit of RTB is that it allows buyers to target specific audiences and adjust their bids based on the value of the impressions they are buying. It also allows for greater control over campaign budgets, as the bids can be adjusted on-the-fly.

Programmatic guaranteed deals, on the other hand, are pre-negotiated agreements between buyers and sellers for the purchase of a set number of impressions. The benefit of PG deals is that they guarantee the delivery of impressions and provide buyers with more control over their campaigns. Buyers can negotiate for specific inventory, such as high-value placements, and can often secure more favorable pricing than in an RTB auction.

When deciding between RTB and PG deals, there are several factors to consider. Firstly, RTB is more suitable for campaigns with short-term goals, such as driving immediate conversions. PG deals, on the other hand, are better for campaigns with long-term goals, such as building brand awareness. Secondly, RTB auctions are more competitive and require more active management, whereas PG deals are simpler and require less effort from buyers. Lastly, RTB can provide more targeted buying opportunities, whereas PG deals often require buyers to purchase a set number of impressions, regardless of targeting.

Ultimately, the choice between RTB and PG deals depends on the goals and budget of the campaign. The key is to evaluate each option and decide which one is best suited for the buyer’s needs. Understanding the differences between RTB and PG deals can help marketers make the right decision for their campaigns and maximize their return on investment.

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