What is Real Time Bidding (RTB)?
Real Time Bidding (RTB) is an automated process that allows advertisers to bid on and purchase individual ad impressions on digital media in real-time. It is an auction-based system that allows advertisers to purchase ad space in real-time, allowing them to target specific audiences and maximize the efficiency of their campaigns.
How Does RTB Work?
When a user visits a website, the publisher’s ad server sends out a request for an ad to multiple ad exchanges. The ad exchanges are connected to demand-side platforms, which are operated by the advertiser. The DSPs, in turn, submit bids to the exchange and the highest bidder wins the auction. The ad exchange then delivers the ad to the publisher’s ad server, which displays the ad on the user’s screen.
Benefits of RTB
Real Time Bidding offers several advantages to advertisers, including:
- Increased efficiency: RTB allows advertisers to purchase ad impressions in real-time, eliminating the need for manual negotiations and long-term contracts.
- Better targeting: RTB enables advertisers to target specific audiences with greater precision, allowing them to maximize the efficiency of their campaigns.
- Cost savings: By bidding on individual ad impressions, advertisers can save money by only paying for the impressions they actually win.
Examples of Real Time Bidding
Real Time Bidding is used in a variety of digital advertising contexts, including display ads, mobile ads, video ads, and social media ads. For example, a travel company might use RTB to target users who have recently searched for flights to a certain destination. By targeting these users, the company can increase the efficiency of its ad campaigns and maximize its return on investment.
Conclusion
Real Time Bidding is a powerful tool that can help advertisers target specific audiences and maximize the efficiency of their campaigns. By bidding on individual ad impressions, advertisers can save money and increase the effectiveness of their campaigns.
References
- https://www.semrush.com/blog/what-is-real-time-bidding/
- https://www.adweek.com/digital/what-is-real-time-bidding/
- https://www.optmyzr.com/blog/what-is-real-time-bidding/
- https://www.taboola.com/what-is-real-time-bidding