{"id":18199,"date":"2019-10-03T09:55:17","date_gmt":"2019-10-03T07:55:17","guid":{"rendered":"https:\/\/yieldbird.com\/?p=18199"},"modified":"2024-07-22T19:27:14","modified_gmt":"2024-07-22T17:27:14","slug":"rtb-or-direct-sale-future-of-online-advertising","status":"publish","type":"post","link":"https:\/\/yieldbird.com\/research-hub\/rtb-or-direct-sale-future-of-online-advertising\/","title":{"rendered":"RTB or Direct Sales \u2013 What Is the Future of Online Advertising?"},"content":{"rendered":"\n

The use of both the RTB model and direct sales allows to achieve a similar end result \u2013 an ad is displayed on the website, and, after reaching a specific user, it allows the advertiser to build a relationship with him or her. <\/p>\n\n\n\n

It is worth noting, however, that all the forecasts suggest that in 2019<\/strong><\/a> the global expenditure on advertising purchased in the programmatic model will account for 65% of the total expenditure on online advertising. The total value of expenditure on programmatic advertising is supposed to be $84 billion, compared to $70 billion in 2018. Why is the disparity between the two models so wide, and will such a division of the market become a constant trend?<\/p>\n\n\n\n

In order to understand the basic differences in the functioning of both solutions, we must look at them \u2018from the inside\u2019. Such an analysis will allow identifying the basic elements that are crucial for every marketer, as well as show why programmatic<\/strong><\/a> is gaining more and more users. <\/p>\n\n\n\n

Traditional buying<\/strong> <\/td>Programmatic<\/strong><\/td><\/tr>
Manual work <\/td>Speeding up the purchasing processes \u2013 automation of work <\/td><\/tr>
Limited optimization possibilities <\/td>Huge optimization possibilities <\/td><\/tr>
Campaign management individually for each publisher <\/td>Central campaign management <\/td><\/tr>
Many technical specifications <\/td>Wide possibility of using data in the campaign (1st, 2nd, 3rd) <\/td><\/tr>
Distribution of advertising materials individually for each publisher <\/td>Management of the materials from a single place in all the spaces <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Workflow\/method of buying<\/strong><\/h2>\n\n\n\n
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Direct sales are based on a manual, very meticulous process of campaign execution that may require many hours, or sometimes days, of analyses. These are necessary not only to understand the needs of the customer but also to negotiate the terms and conditions of orders with the publishers. <\/p>\n<\/div><\/div>\n\n\n\n

Only at the \u2018de facto stage\u2019 does the work for the customer begin, i.e., execution of the campaign, control, and optimization of results, and final reporting. Obviously, all this requires a lot of both time and effort, and, at the same time, poses a risk of there being misunderstandings or mistakes between the advertiser and the publisher. <\/p>\n\n\n\n

If you choose direct sales, on the one hand, you guarantee the price and availability to the customer, and, on the other, you buy a specific package of impressions with minimal influence on their selection or quality. And this is exactly where the customer starts having doubts. <\/p>\n\n\n\n

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This is also where the programmatic<\/strong><\/a> model \u2018comes to the rescue\u2019 since it\u2019s based on automatic execution and algorithms rather than human work. It allows excluding manual work and the complicated process of communication between the two sides. Of course, it can\u2019t be said that the use of the RTB model allows to completely eliminate the human factor because it is still necessary to manually enter data, provide technical support, and evaluate the inventory quality and targeting possibilities. <\/p>\n\n\n\n

Nonetheless, thanks to the automation of a part of the process in programmatic, most campaign components \u2013 such as reporting and optimization \u2013 can be handled in real-time. So, the first major advantage of a programmatic buy is, simply, the speed and efficiency of acting. <\/p>\n\n\n\n

Targeting\/personalization<\/strong><\/h2>\n\n\n\n


It\u2019s worth keeping in mind that the model of a campaign\u2019s execution affects the way of its targeting. The main difference between direct sales and RTB is the precision in reaching a specific user \u2013 programmatic allows the marketer to switch from mass purchasing of ad impressions to individual impressions.<\/p>\n\n\n\n

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The use of RTB creates opportunities for targeting a campaign with the use of data collected during the campaign<\/strong><\/a> as well as data available on platforms (e.g. Google) about demographics, interests, or purchase intentions. This is a complete opposite of direct purchasing, where you can choose from predefined options that have been dictated by the publisher and that depend on the parameters available on ad servers. <\/p>\n<\/div><\/div>\n\n\n\n

Classic targeting can be boiled down to the following points:<\/strong><\/h2>\n\n\n\n