In a recent article on MarketingLand.com, writer Ratko Vidakovic explained the differences between real-time bidding and direct buys for online advertising.

Advertisers must take these purchasing methods into consideration anytime they want to place an ad on a website. Direct buys occur when a marketer purchases impressions in bulk for specific contexts and sites, such as ESPN.com. It involves a lot of manual hours and effort in order to contact a publisher’s sales team and negotiate before an ad launch. Real-time bidding evaluates impressions individually to the highest bidder and can place ads on multiple sites for specific demographs, such as sports fans, instead of one site at a time. The process is automated and almost instantaneous because it utilizes algorithms.

Both purchasing methods contain pros and cons and different processes for online advertisers, which Vidakovic listed below. These categories discuss pricing methods, the reality of getting started to acquire both audiences and revenue. For example, although real-time bidding makes it easier to reach wider audiences, it does not provide a guarantee on return. All of the categories include:

  1. Targeting – Websites Vs. Audiences
  2. Supply – Guaranteed Vs. Non-Guaranteed
  3. Workflow – Manual Vs. Programmatic
  4. Pricing – CPM Vs. eCPM
  5. Accessibility – Barriers To Entry

Altitude Digital is an online video advertisement company that explores traditional and emerging advertising purchasing options. It remains in tune with evolving advertising techniques in order to utilize the best procedures. It recognizes that it is possible to use both methods to complement each other and create a rounded online advertising campaign. However, Vidakovic stated that “it requires a data-driven mindset and a methodical approach to optimization and scaling.”

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