Real time bidding is technology introduced in the year 2009 to make it easier for the ad networks to buy only the inventory they are interested in. RTB allows display inventory to be purchased through a bidding system by the individual impression that reveals in millisecond before a webpage is loaded by a customer. The targeting and cost efficiency breakthrough offered by RTB are making it an innovative force on the online advertising platform.
There are three noticeable elements in the RTB landscape:
- The Demand Side Platform (DSP): The DSP is a vital tool that systematizes the buying of online advertising on behalf of advertisers. Advertisers use DSPs to set the buying constraints of their campaigns and to monitor campaign performance. DSPs are most often used by pool of advertisers and agencies, it helps them buy mobile, display, video and search ads.
- The Supply Side Platform (SSP): The publisher delivers the inventory. SSPs are most often used by pool of publishers to help them sell video, display and mobile ads. Nowadays, RTB is being progressively used on premium inventory due to advertiser demand and for the higher revenue yielding. There are many publishers who trust the Supply Side Platforms, or SSPs, for better accomplishment and selling their inventories.
- The Ad Exchange: Ad Exchanges are regarded as the stock exchanges in the programmatic world. However, an ad exchange is really a software tool that connects the advertisers with the publishers. For example, DoubleClick Ad Exchange (Google), Microsoft Ad Exchange, AppNexus, their main aim is to facilitate the purchase of display inventory in real-time via auctions that take place in the milliseconds before a page load. It is through these auctions that publishers are able to maximize the price for their inventory and advertisers are able to purchase individual impressions. To provide you with better fill-rate and best CPM’s, Vertoz is proudly working with ADX, OpenX, PubMatic, epom, SpotXchange, VertaMedia, advertising.com and many more.
The way the RTB process unfolds, is like this:
The publisher delivers its inventory to an Ad Exchange, who is answerable and responsible for conducting an auction, during which the demand side platform (DSPs), on behalf of the advertisers, will place a bid on each impression.
The value or charge of the bid is based on the value of that particular impression, as arbitrated by the advertiser’s constraints with the DSP.
The bidding process certifies that each impression is sold at the maximum price, as coded by real time market demand. Once the bidding is done, the winner is selected and the ad is served on the publisher’s website.
The exact difference between RTB and programmatic advertising is:
- Programmatic Advertising is a technology that allows advertisers to automatically target customers based on certain metrics that are obtained through algorithms. An advertiser can target customers on any site by extracting information like what sites the customer has visited in the past, gender, age, fashion, taste and if they have shopped for similar products already.
- Real Time Bidding, on the other hand, is related to the buying and selling of ad impressions which is done in an auction that occurs in the time it takes your webpage to load. As the impression loads in a web browser, information regarding the user gets passed on to the advertisers. Advertisers those who are interested in the potential user will start the bidding process. The highest bidder wins. Programmatic is a method to determine if the advertiser wants to purchase the inventory space. On the other hand, RTB is one way or medium to purchase it.
The real benefits of Real Time Bidding
Real Time Bidding helps to increase the control over campaign performance. It increases the spending competences; plus, better outcomes are delivered for the clients.
- RTB helps advertisers to target their potential customers.
- RTB enhances customer targeting capabilities and it has more cost effective reach and frequency.
- RTB eliminates all missed impressions and ad dollars.
- RTB help publishers to deliver higher revenues on inventory and introducing that inventory to a buying market.
- This process is designed to maximize the value of each individual impression. Click here to learn more.
Real time bidding offers some incredible paybacks for both the buyers and sellers of online advertising industry – are you taking lead with RTB? Join Vertoz.com for getting benefits of RTB, Sign Up here