Understanding Programmatic Advertising – IAB

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The Interactive Advertising Bureau, more commonly known in the industry as the IAB delivers the most concise definitions of digital advertising concepts. Learn what programmatic is from industry professionals.

What  is Programmatic Advertising? Quotes

Carl Kalapesi, the Senior Director of Industry Initiates of the IAB defines drogrammatic as:

Programmatic is really just a way of using technology to buy and sell media. It’s used in a lot of different ways, it gets associated with a lot of different things. People think it’s only real time bidding, RTB as it’s called or the open auction or it is associated with remnant inventory.

Alanna Gombert, the CEO & Founder, Gombert Consulting and Co-Chair of the IAB Programmatic Council:

For us, it is a booking mechanism to sell inventory to advertisers be it the exchange or programmatic direct or anything in between.

Paul Rostkowski, President, Varick Media Management:

It’s media that is delivered with a set of tools or software and RTB is a component of it which means real time biddable media. Programmatic specifically has a tremendous growth rates. We talk about 70-80% growth rate for Programmatic, we see that easily. Our business has seen that and we expect that to continue. As marketers embrace these new formats, there becomes a lot more opportunity for the industry to become smarter about it and have the dollars available to implement and deploy media along those lines. The technology is also moving at a much faster rate then it has in the past.

Defining Programmatic

According to the IAB. Traditionally, when you bought and sold digital media you bought and sold fixed blocks of impressions by the thousands. You would buy an ad on a homepage and that ad would be shown to everyone regardless of their age, gender or interests. This greatly diluted the value of each impression and made it very hard measure results. RTB creates an auction environment where a multitude of marketers can bid to buy impressions impressions on specific users based on data about those users.

RTB = Right Ad + Right User + Right time.