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Real-time Bidding

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REAL-TIME BIDDING

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What is Real-Time Bidding?

The RTB or Real Time Bidding industry is on the rise as programmatic advertising continues to gain steam. Research companies are forecasting more than a 20% growth for this market in the United States between now and 2020.

This translates to billions of dollars, not even to mention other markets like Europe and Asia which have growing interests in a programmatic approach to advertising as well.

REAL TIME BIDDING EXPLAINED – HOW DOES IT WORK?

Real Time Bidding is an auction setting where ad impressions are sold and bought, and transactions take place in a blink of an eye. Once an advertiser’s bid wins the auction, their digital ad is instantaneously shown on the website or property of the publisher. Supporting platforms such as Ad Exchanges and Supply Side Platforms are also used within the process. RTB auctions put the focus on impression-based bidding whereas static auctions tend to group impressions only allowing advertisers to bid on them in package deals.

How does Real-Time Bidding work: When a user visits a website, a corresponding bid request is being sent to an Ad Exchange.

This bid request then contains different types information such as demographical data, location information, browser history, etc. The Ad exchange then passes the bid requests along to its list of advertisers/buyers who bid in real time for the ad impression as it gets presented to the website user. The advertiser that bids the highest amount wins the impression and gets its ad served in front of the site user.

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