Real Time Bidding: How It Works And Why You Should Use It
Real time bidding (RTB) is a form of programmatic advertising that allows advertisers to buy and sell online ad space in real time. RTB is one of the most efficient and effective ways to reach your target audience and optimize your ad performance.
The term “Programmatic Advertising” is often used interchangeably with Real Time Bidding, but RTB refers specifically to the real time auction process that is the backbone of programmatic advertising. In this article, we will explain what RTB is, how it works, and why you should use it for your online marketing campaigns.
What is Real Time Bidding?
Real time bidding (RTB) is a process of buying and selling online ad space through an automated auction that happens in milliseconds. RTB is part of the programmatic advertising ecosystem, which involves different platforms that connect advertisers and publishers.
The main platforms involved in RTB are:
Demand-side platforms (DSPs): These are software tools that allow advertisers to manage their ad campaigns, set their bidding strategies, and target their desired audience. DSPs also communicate with ad exchanges to place bids on ad space.
Ad exchanges: These are marketplaces that facilitate the RTB auctions between DSPs and SSPs. Ad exchanges collect information about the available ad space and the user who is visiting the website or app, and send it to the DSPs for bidding.
Supply-side platforms (SSPs): These are software tools that allow publishers to sell their ad space to advertisers. SSPs also communicate with ad exchanges to offer their inventory and accept bids from DSPs.
How Real Time Bidding (RTB) Works
The Real Time Bidding (RTB) process starts when a user visits a website or app that has ad space available. The publisher sends information about the ad space, such as its size, location, and format, to the SSP. The SSP then sends this information, along with the user’s data, such as their cookies, location, device, and interests, to the ad exchange.
The ad exchange then broadcasts this information to multiple DSPs that are interested in buying the ad space. The DSPs analyze the information and decide whether to bid on the ad space or not, based on their own criteria and budget. The DSPs then send their bids back to the ad exchange.
The ad exchange then selects the highest bidder and notifies the SSP. The SSP then sends the winning ad to the publisher, who displays it on the website or app. The whole process takes place in less than a second, before the page loads.
Why Use Real Time Bidding?
Real time bidding (RTB) offers many benefits for both advertisers and publishers, such as:
Efficiency: RTB eliminates the need for manual negotiations and contracts between advertisers and publishers, saving time and resources. RTB also allows advertisers to buy only the impressions that match their target audience and goals, reducing waste and increasing return on investment (ROI).
Transparency: Real Time Bidding provides advertisers with detailed data and insights about their ad performance, such as impressions, clicks, conversions, cost per mille (CPM), cost per click (CPC), click-through rate (CTR), etc. RTB also allows publishers to control their inventory and pricing, and monitor their revenue and fill rate.
Relevance: Real Time Bidding enables advertisers to deliver personalized and relevant ads to users based on their behavior, preferences, location, device, etc. RTB also allows publishers to offer more value to their users by showing them ads that match their interests and needs.
Scale: Real Time Bidding gives advertisers access to a large and diverse pool of inventory across different websites, apps, formats, and devices. RTB also gives publishers access to a large and diverse pool of advertisers across different industries, niches, and budgets.
How to Get Started with Real Time Bidding?
To get started with Real Time Bidding (RTB), you need to choose a platform that suits your needs and goals. There are many platforms available in the market, each with its own features and benefits.
Some of the factors you should consider when choosing a platform are:
Budget: Different platforms have different pricing models and minimum spend requirements. You should choose a platform that fits your budget and offers you the best value for your money.
Targeting: Different platforms have different targeting options and capabilities. You should choose a platform that allows you to reach your ideal audience based on various criteria such as demographics, interests, behavior, location, device, etc.
Inventory: Different platforms have different inventory sources and quality. You should choose a platform that gives you access to premium inventory across different websites, apps, formats, and devices.
Support: Different platforms have different levels of customer service and support. You should choose a platform that provides you with adequate guidance, training, troubleshooting, and optimization.
Some Examples Of Popular Platforms For RTB
Google Ads: Google Ads is one of the most widely used platforms for online advertising. It allows you to create and manage your campaigns across Google’s network of websites and apps, as well as other third-party websites and apps that partner with Google.
Google Ads offers various features such as smart bidding, responsive ads, dynamic remarketing, etc.
SmartyAds: SmartyAds is a full-stack programmatic platform that offers solutions for both advertisers and publishers. It allows you to create and manage your campaigns across various channels and formats, such as display, video, native, mobile, etc.
SmartyAds also offers features such as fraud prevention, data management, analytics, etc.
Publift: Publift is a platform that helps publishers to monetize their inventory and optimize their revenue. It allows you to sell your inventory to multiple advertisers and networks through RTB and other methods. Publift also offers features such as header bidding, ad layout optimization, ad quality control, etc.
Conclusion
Real time bidding (RTB) is a powerful and innovative way to buy and sell online ad space in real time. RTB offers many benefits for both advertisers and publishers, such as efficiency, transparency, relevance, and scale.
To get started with real time bidding, you need to choose a platform that suits your needs and goals.
