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REAL TIME BIDDING (RTB)
Real-time bidding (RTB) is a new and dynamic way to buy online media.
Real-time Bidding with Geofencing
Real-time bidding (RTB) is a new and dynamic way to buy online media. Through an automated process, media buyers can evaluate, bid on, and purchase ad inventory on an impression-by-impression basis.
With real-time bidding, media buyers can drive meaningful one-to-one connections to consumers with greater scale and efficiency
RTB is essentially an online auction marketplace for buying and selling impressions in real time. Such auction occurs in the time it takes for a webpage to load — usually around 100 milliseconds. RTB programmatic buying is beneficial for publishers and advertisers. Marketers achieve major efficiencies by showing their ads to the right audiences and decrease wasted impressions, while publishers enhance the value of their ad space and improve direct sales strategy and pricing.
RTB has essential components associated with function. They include:
- Demand Side Platform (DSP): A DSP allows buyers of digital ad inventory to purchase ads through multiple ad exchanges through a single portal.
- Supply Side Platform (SSP): An SSP allows publishers to accept the highest bid for their inventory. Additionally, it allows publishers to have liquidity in the market.
- Ad Exchanges: Ad exchanges are essentially digital marketplaces that facilitate transactions between DSPs (buyers) and SSPs (sellers).
- Ad Networks: Ad networks are aggregators of ad space supply from publishers. They categorize and classify ad inventory, then resell it to advertisers in bulk.
- Agency buying/trading desks (ATD): A media buyer and re-seller that manages programmatic media and acts as an independent working unit.
- Data Management Partner (DMP): A DMP collects, organizes, and activates first-, second-and third-party audience data from any source, including online, offline, mobile, and beyond. It is the backbone of data-driven marketing and allows businesses to gain unique insights into their audience.
- Ad verification and brand protection platforms: A platform that investigates audiences, media destinations, and advertisers to assure that the ads are placed appropriately.