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Real Time Bidding

Real Time Bidding

  • 11.20.2016

Real Time Bidding (RTB) has added a new dimension to online advertising as a recent type of programmatic advertising. Without a shadow of doubt, almost everybody has heard something about it. Before going into details, let's start with what real time bidding is.

Real time bidding, in a simple way, is defined as “the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a web page to load.” 

The process starts when a user visits a web page. That is followed by a bid request that includes multiple data from browsing history to location information. Then, that request goes from publisher to Ad-Exchange which enables to auction the request until the advertisers are willing to pay the highest price and finally the highest priced ad is shown on the web page. All these actions happen in milliseconds and advertisers are in the control of setting maximum bids and budgets for their ad campaign.

With the advance of RTB, advertisers have had the opportunity to target specific users with their highly targeted ads. In addition, RTB is more efficient in terms of accessing a lot of inventory and picking the most suitable impressions across the world than other types of online advertising. 

Without real time bidding, they had to do everything like negotiating the prices and the ad traffic in an old fashion, which means lose of more time and money. Now, we know what RTB is and why it matters in general. Let’s look into the benefits of RTB for advertisers and publishers respectively, then.

First of all, the benefits of RTB for advertisers basically include highly specific consumer targeting, wide-reaching to consumers in a more cost efficient way, and the elimination of unnecessary impressions and ad money. As for the benefits of RTB for the publishers, it is about delivering higher revenues on inventory through opening that inventory to a buying market designed to maximize the value of each individual impression.

To sum up, real time bidding is a new face of online advertising and offers benefits not only for advertisers but also for publishers. Its process seems to be a little complex but everything happens in milliseconds and enables highly targeted advertising. It is the most efficient and the most cost-effective way of doing online advertising for both advertisers and publishers.