To
most people in the online advertising space, hearing these two terms has
become an almost everyday occurrence. However, for those who do not possess an
in-depth knowledge and experience in the buying and selling of digital media, they’re
mostly meaningless.
So what is Real Time Bidding
(RTB)? RTB essentially refers to the buying and selling of online ad
impressions through real time auctions that occur in the time that it takes a webpage
to load. These auctions are often facilitated by ad exchanges or Supply-Side
Platforms (SSPs). In essence, different advertisers can bid on a single piece
of ad inventory on a website with the resulting ad displayed belonging to the
advertiser with the highest bid.
How RTB works |
So how does this work, you
ask? A website with an available ad slot to sell (ad inventory) lists it on an
ad exchange. The exchange sorts and classifies the inventory according to the
audience it is being served to. When the webpage is loaded and the ad server
requests for an ad, the exchange looks into its system to see which advertisers
have placed bids on that particular inventory. Assuming two or three competing
brands all bid on the same inventory, the ad exchange selects the brand with
the highest bid (could be CPM or CPC) and displays that ad on the website in the
available slot.
With the purchase of online
ad inventory being streamlined in this manner, it is easy to see the benefits
of this flow. A few of the most obvious ones are:
- Efficiency – Using exchanges and other ad tech, buyers have access to a huge range of ad inventory and they can pick the impressions they deem the most valuable to them.
- Higher Rates for Publishers – The programmatic auction effectively matches buyers and sellers of ad impressions or audiences and this boosts prices for publishers.
- Better Audience Data – Due to the classification of the ad inventory into audiences and user profiles, both the buyers and sellers know specifically the interests of their visitors and this makes targeting a lot easier.
There are a number of
platforms and services that offer these RTB services as the adoption of this
type of programmatic ad buying is gaining popularity especially among leading
brands worldwide. Some of these are DoubleClick Bid Manager, AppNexus and
MediaMath.
Some RTB platforms |
Have you had any experience
using RTB or any one of these platforms? Leave your answers in the comments.
No i have not had any experience (RTB) but i will love to use this program.
ReplyDeleteDo you work in the digital marketing industry?
DeleteSo great work for informing us of the possibilities and following a certain path.
ReplyDeleteI really appreciate your hard work an giving us some information and inspiring others to follow.
Thanks so much.
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