What Is Real-Time Bidding?-How Does It Work?  

What Is Real-Time Bidding?

» Nowadays, most  ad networks apply Real-Time Bidding to their platform to create the most profitable transactions between advertisers and publishers. So if you want to explore its operation and benefits, this article will be a useful reference for you.

What is it?

» Real-Time Bidding is the activities of buying and selling advertising inventory for a per-impression in real-time. It happens programmatically through an auction that is also the time it takes a web page to load. Then the ad with the highest bidding is immediately shown on the publisher’s site. These auctions take place on ad exchanges or supply-side platforms. 

  • An ad exchange is a technology platform in which buying and selling media inventory occur.
  • An SSP (supply-side platform) is software that helps publishers manage and sell their advertising inventory to advertisers. Based on SSP, publishers can save expenses for marketing and optimize their revenue.

How does the bidding process work?

» Real-time bidding is triggered when a user clicks a website. When a user clicks a page before the page loads, the inventory of this publisher page is sent to the ad exchange. Then, the ad exchange classifies the user data including the user’s demographic information, browsing history, location. Next, the demand-side platform helps the buyer choose the suitable prices for the ad space based on that information. Finally, the ad exchange receives the bids and picks a winner who has the highest bid. The website loads on their screen the ad of the winner in this auction and the whole process only occurs in page load time (less than 100 milliseconds).

Why Is Real-Time Bidding Important?

»  RTB gives amazing opportunities for both advertisers and publishers to maximize revenue in the long term. There are several of benefits which you can simply release from RTB

For advertisers

»  When ad buyers purchase ad inventory via Real-Time Bidding, they can access a large range of various inventory and pick out the most valuable ones for their ads. Moreover, they don’t need to directly work with media companies or ad networks. Based on the different bid, the ads are displayed to the level of target customers. So advertisers can cut down the wasteful media buying on irrelevant visitors. As a result, advertisers focus on the most relevant inventory and get a higher ROI.

For publishers

»  Real-Time Bidding helps publishers control the minimum price (price floor) for each inventory on their site via exchanges and supply-side platforms. The inventory is filled by the ads with the highest bidding after the competitive auction among ad buyers. Moreover, publishers who have high website traffic, they can take advantage of the auction to create more premium placements on their site and generate more revenue.

Conclusion

»  RTB is a truly exciting tech for publishers and advertisers in the industry of digital advertising to continuously grow and control over their business efficiently.

Author: TopAdNetworks

TopAdNetworks

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