Back in the year 2002 advertisers bought ad spots as if websites were news papers. They bought the top banner for a month on a specific website hoping to catch the eye of their target audience, praying for a few clicks along the way – TLVMedia
This was the sad truth of digital advertising for a long time. Digital advertising was a bulky process made buying and selling digital ad placements a hassle and often resulted in advertisers spending their ad budgets on audiences that were random with no targeting or intent to purchase a product or sign up for a service.
The value proposition of real time bidding is that advertisers only pay for the impressions that they want while publishers yield the highest CPM for all impressions served. RTB creates upward pressure on all advertisers to pay as much as possible as an auction is created in real time every single bid request on a page load where impressions are being sold programmatically.
Programmatic advertising will grow to become a 33 billion dollar industry by the year 2017. Programmatic is being embraced by the advertising industry as the primary form of buying and selling media online. Agency trading desks are specialized trading platforms that spread brand dollars out programmatically.
While programmatic is primarily just lives online, programmatic TV will become the next frontier for the advertising industry.