What is Real Time Bidding, Who Uses This, and Why

Real Time Bidding

Real-time bidding (or RTB) is a technology for selling and buying advertising shows on the Internet on the principle of an auction that occurs in real time. RTB is a new display ad technology implemented by real-time bidding companies. Real-time advertising bidding allows you to maximize advertising revenue by automatically selecting the most profitable advertiser’s offer. RTB advertising (RTB System) means real-time trading. An idea appeared in the United States of America and it took more than ten percent in the online advertising market in a short period of time.

So what is real-time bidding?

This is a kind of exchange that allows an advertiser to purchase clicks and impressions. The difference from other networks is that it is possible to purchase clicks and shows not only in bulk. Real-Time Bidding presents such a possibility as a simultaneous connection to various ad networks with the help of one resource.

This system distributes advertising through numerous channels, thereby covering a huge variety of advertising sites. Another feature of the Real-Time Bidding System is the work strictly in accordance with the so-called targeting set up by the advertiser himself. Real-time bidding system provides this service on its official website.

RTB operation principle

A huge database from RTB users at the expense of targeting can make an advertisement with nearly a 100% probability come to the eyes of those users for whom it will be interesting and useful. When a user visits a resource, the real-time bidding system scans user information, then launches only this advertising on the site that will be as close as possible to the visitor’s interests.

But there is one feature in choosing the appearance of a particular advertisement on the site – the presence of a high bid per click among competitors. The effectiveness of real-time bidding system technology is so high that it is preferred by resources with the highest percentage of attendance than simple ad networks. A feature of the technology is that, along with sales of advertising sites through several advertising networks, the webmaster collaborates in parallel with some company.

Advantages of RTB for the buyer and the seller of advertising

1. The RTB protocol quickly collects the necessary information about a specific user depending on the statistics of his or her requests and transfers the data to the territory of the advertiser’s sites. For users, this is convenient because they see an advertisement that is formed on the basis of their behavioral habits on the Internet. For example, when visiting travel sites, a user will see ads from travel agencies or resources with cheap tickets. Thus, the maximum ad relevance is ensured.

2. RTB technology allows you to adapt online advertising for different media and for each individual segment of the audience.

3. Payment for advertising is no longer on the ‘blind’ principle of CPM (price per 1000 views). RTB technology offers control over the placement of ads by the advertiser. That is, instead of “wholesale” purchases of ad units on a particular resource, the advertiser gets the opportunity to display single ads to those users who are most interested in this commercial, regardless of the resource. This approach completely eliminates the ‘idle’ shows, which, in turn, save the budget.

4. For more efficient work and quick reaction of advertisers, special MBD platforms (Media Buying Desk) have been developed, which automate planning, purchasing, publishing advertising and reporting on campaigns, providing access to advertising auctions. DMP platforms collect and store information about tastes, needs, social status and lifestyle of consumers and display ads through the most convenient channels for them.

5. Maximum profit for sites from advertising: each display is sold at the highest bid price at auction.