The essence of programmatic advertising flows through the automatic progression of ad transactions taking place in the milliseconds that it takes for any page to load; this process is called real-time bidding. RTB is the practice of buying and selling ads by the supply-side platform or an ad exchange.
Real-time bidding ( RTB) is a subcategory of programmatic media buying. It refers to the practice of buying and selling ads on a real-time, per-impression basis in an instant auction. This is usually facilitated by a supply-side platform (SSP) or an ad exchange.
SSP is the software that lets publishers sell display, mobile, and video ad impressions to potential buyers – automatically and in real-time. This includes ad exchanges, networks, and demand-side platforms (DSPs), giving publishers greater control of their inventory and CPMs. An ad exchange is how the supply-side feed inventory into the ad exchange.
Real-time Bidding has changed the course of online advertising with the efficient and timely influx of ad management techniques that values accuracy over experience.
How does it work?
The process begins when the ad impression loads on a web browser. Within milliseconds, the information of the page is passed on to an ad exchange, which later auctions it off to an advertiser paying the highest price. This finishes when the winner’s bid is loaded into the webpage.
Advertisers organize their ad demands through Demand-Side Platforms which help them in purchasing the ad. The bulk depends on a variety of factors, including purchase behaviour and user impression. AdvertiCe helps in recognizing the purchase pattern of users.
Real-time Bidding is relevant to the business. Here’s why:
RTB targets the ads to specific users and eliminates the need for contingent ad buying. This elevates the revenue model, as targeted ads generate a higher CPM.
Real-time Bidding is a boon for advertisers too. Here’s why:
With efficiency and expertise working hand in hand, Real-time Bidding liberates ad buyers to negotiate attractive ad prices without being beholden to the circus of publishers and their antics. Through RTB, a huge range of inventory can be accessed by the buyers, helping them make the best choice for their limited resources. This entire automation dramatically cuts down the impressions wasted on wrong ad placements carried out by unreliable human ad buyers. RTB is also cost-efficient, as it enables advertisers to pay them less for their inventory
Here’s how it serves both parties:
For advertisers: RTB means more streamlined, efficient, and targeted buying. It provides them with the ability to fine-tune targeting and focus on the most relevant inventory results in higher ROI. Ultimately, users see more relevant ads.
For publishers: RTB increases revenue and fills rates by opening inventory to a wider variety of buyers in a competitive auction. Finally, publishers gain visibility of who is buying which inventory and can leverage this knowledge to charge more for their premium placements.
It improves and manages inventory pricing, modifies ad units and improves the overall user experience, which reduces costs and eliminates the traditional practice of trial and error. Through its transformational service to all parties involved, it is the present and future of digital advertising.