![Programmatic Buying: [DSP (Demand side platform) or RTB (Real time bidding)]](https://rankernotes.com/wp-content/uploads/2025/08/a-generated-image-5.jpeg)
IV. Programmatic Buying: [DSP (Demand-side platform) or RTB (Real-time bidding)]
Programmatic buying is an automated method for purchasing digital ad space using technology platforms, which streamlines and optimizes the process by leveraging data for targeting. Two important components of programmatic buying are DSP (Demand Side Platform) and RTB (Real Time Bidding).
DSP (Demand Side Platform)
- A DSP is a software platform advertisers use to set up, manage, and optimize their digital ad campaigns.
- It allows advertisers to buy ad inventory across multiple publishers automatically, connecting to ad exchanges and SSPs (supply-side platforms).
- Advertisers set campaign parameters (budget, audience, targeting, creative), and the DSP executes the buys.
- DSPs can access multiple buying methods: RTB auctions, private marketplaces, and programmatic direct deals.
RTB (Real-Time Bidding)
- RTB is a subset of programmatic buying, where individual ad impressions are auctioned in real time (milliseconds) as users load web pages.
- The DSP analyzes the impressions and bids in real-time against other advertisers, and the highest bidder’s ad is served.
- RTB is open and auction-based—multiple advertisers can participate, enabling dynamic pricing.
- It maximizes reach and campaign effectiveness but also automates ad placement with minimal manual intervention.
Key Differences
| Aspect | Programmatic Buying (DSP) | RTB (Real-Time Bidding) |
| Scope | Umbrella of digital ad buying methods | A type of programmatic buying (open auction) |
| Process | Includes RTB, PMPs, direct programmatic | Focuses only on auction model |
| Negotiation | Can include pre-negotiated deals, PMPs | No negotiation, only automated bidding |
| Speed | Automated, sometimes includes negotiation | Transactions happen in milliseconds |
| Control | Advertisers choose strategy and method | Least control, bids per impression |
| Targeting | Wide targeting options, audience lists | Per-impression, granular targeting |
- RTB is always executed through a DSP, but not all programmatic buying uses RTB auctions.
- Programmatic can use direct deals (fixed price) or private marketplaces for premium inventory, while RTB usually deals with open inventory.
Summary
- DSP is the platform; RTB is one buying model within programmatic.
- RTB is swift, dynamic, auction-driven, and most common for large-scale, cost-effective campaigns.
- Programmatic buying enables automated, data-driven, and multi-channel ad purchasing—RTB is the real-time auction component within it.
