With RTB, the marketing departments can avoid spending marketing resources on purchases of block ad inventory with non-targeted and thus often irrelevant users. Frequency capping enables advertisers to limit the number of times a user is exposed to the same ad.
The whole process, from an app user triggering an ad request to the bidding process to the placement of the ad, happens in just 200 milliseconds.
Is programmatic advertising different than real-time bidding? There is some overlap, but the words RTB and programmatic can’t be used interchangeably. Programmatic advertising is a form of purchasing ads that utilize technology to automate and streamline the process. However, programmatic advertising isn’t completely automated, as there needs to be a person to define the parameters of the advertising campaign, such as target audience, geographic area and desired ad format (video, native, display, etc.
The publisher accepts your ad only if you place the highest bid. But remember: real-time bidding automatically does all the bidding. You don’t have to take any additional steps.
Real time bidding facilitated through an SSP can help publishers find the right demand sources to work with, based on factors like latency, unique demand, bid rates, and ad space availability.
RTB ecosystem consists of several types of parties that typically participate in the RTB process (see Figure 1):
Real-time bidding can be compared to a stock market, where the amount of demand at the moment determines the price of a stock. With real-time bidding, publishers set the floor price for an ad, but the demand still determines the final price.
Programmatic guaranteed means you take part in private, invite-only auctions. RTB programmatic implies that you buy impressions on open auctions. For a deeper dive into the difference between the three types of automated media buying, check out our programmatic vs. direct advertising comparison. How Real-Time Bidding Works
Payment Processed: The advertiser pays the agreed bid price through the DSP. The SSP then collects the payment, deducts its fee, and remits the remainder to the publisher.
As a result, header bidding allows publishers to maximize revenue by increasing competition for ad space, which raises the average bid price. If an advertiser wishes to buy high-priority impressions, they will need to pay more for it.
What is an ad server and how does ad serving work? Find out answers to these questions as here well as ad server benefits for ad networks.
These auctions take place in milliseconds, dramatically cutting the time it takes to buy ad space. RTB auctions replace traditional ad buying processes, allowing advertisers to place hundreds or even thousands of ads almost instantly.
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Increasing ad space value: As real-time auctions are triggered, previously unwanted inventory increases in value for publishers, helping them to clear inventory faster.