Home Marketing A simple guide in English to real-time bidding

A simple guide in English to real-time bidding


Since its inception in 2009, real-time bidding (RTB) has become one of the most popular ways to buy inventory online.

But even for the experienced marketers, sort of advertising programmed maybe a very confusing concept. I am, for one person, intimidated only by reading the word “programmatically”.

So let’s break down what RTB is, how it works, and the pros and cons of using it – all while keeping it jargon free.

Before diving into RTB, let’s cover a few basics.

Impression, when the ad is displayed on the user’s screen, is the currency used in the RTB. Publishers – that is, the owner of the websites and mobile apps where the ad is shown – typically charge a fee for every 1,000 impressions the ad receives. Advertisers know this is cost per mille (CPM) and set their bids based on the value of each impression.

How do you determine that value? By rating users based on your targeting parameters (learn more about that later).

Is there a real time bidding platform?

There’s no RTB platform because real-time bidding is a method of buying impressions, not a funnel. Are you still confused? Imagine a real auction.

Imagine you want to auction a car. You hire someone to bid for you – it’s your bridge side platform (DSP). The person who put the car up for auction is the publisher and the location is the market. Raising your hand to represent your bid is your real-time bidding process.

To purchase inventory through RTB, you’ll have to use DSP, which is an advertiser-side media purchase platform that facilitates ad campaign purchases and monitors campaign performance. there. Find out more about that here.

How real-time bidding works

To understand how the algorithm works, you need to first understand the platforms involved in the process.

On the advertiser’s side, marketers use DSP to set up their ad campaign and track its performance. On the other hand, publishers use supply-side platforms (SSPs) to list their ad slots (also known as inventory) and the prices they charge. They then met in the middle at the ad exchange, the market where real-time bidding actually takes place.

To determine which inventory to bid, advertisers set the targeting parameters. For example, a brand might just want to appeal to users in a specific area or have recently visited their website.

So advertisers, or in particular their DSPs, evaluate their advertising potential in real time and decide whether to bid and how much to bid.

So now that we’ve covered the key essentials of real-time bidding, let’s go through an example of how it works.

Let’s say Silk is a UK-based beauty brand that just launched a new line of eyebrow products and is running a campaign. They set up their campaign on DSP and targeted users who regularly shop for makeup products, who live in the Manchester area and are between 18 and 30 years old. The brand also wants its ads to show up on beauty and lifestyle websites only.

The user visits the publisher’s website. The publisher SSP will send a bid request to the ad exchange, where Silk’s DSP will evaluate the value of the impression. DSP will then determine if the user meets the parameters outlined in the campaign. If so, DSP sends a bid.

If Silk has the winning bid, the user will see the ad after the page loads. This process happened thousands of times on different websites during the period of Silk’s advertising campaign.

Silk’s Paid advertising Managers will also monitor their ad performance on DSP to see if the ads are reaching the desired audience, or whether the parameters should be adjusted.

Real-Time Bidding Benefits

Better tracking

With RTB, advertisers can track their campaigns easily without depending on providers. No need to contact multiple publishers and request reporting, you can get reports on your DSP yourself.

This also gives marketers the agility to turn around quickly if their campaigns aren’t performing as expected. For example, you may find that moving from one keyword to another can increase your campaign’s performance and be more relevant to the audience you want to reach.

Better targeting

When you buy ads through RTB, you buy one impression at a time. This means that each time a website visitor or mobile app user visits the publisher’s website, you can review that person’s specific profile and see if that profile is available. is suitable for your target audience or not.

It helps with targeting more precisely because you can make sure your ads reach only the right people at the right time.

Cost effective saving

Real-time bidding algorithm accuracy allows marketers to spend their advertising dollars on high-value impressions.

Often times, brands launch marketing campaigns that only reach a portion of their target market, leaving the rest of the budget wasted on users who don’t fit on a profile.

Additionally, RTB employs a lot of manual labor in the online advertising process, allowing marketers to focus on other efforts.

Real Time Bidding Challenge

Brand safety

Where Your ad’s display is just as important WHO See it. This is because consumers value the brand’s ads based on the content around them.

Survey on Advertising Colonies 2019 Report that 60% of consumers have negative perceptions of brands whose advertisements appear near inappropriate, hateful, or offensive content. This could be anything from websites that host pirated movies to sites promoting hate speech.

Due to the nature of RTB, there is a risk that your ad might appear on a website with content that you don’t want your brand associated with. However, brands can counteract this by including certain keywords and websites on the disavow list. This protects brands from showing up on websites or mobile apps that don’t match their identities.

Advertising fraud

Cheq estimated that by 2020, ad fraud will cost digital advertisers $ 35 billion, with 10.5% of digital advertisers reaching bots.

In addition to the cost, the growing complexity of bots can also cause brands to collect inaccurate data about their campaigns.

Some fraudulent publishers generate impressions to steal from advertisers. One way to combat this is to use DSP or an ad network with fraud detection software.

Real-time bidding makes the online advertising process quick and easy. Marketers can skip back to the past regarding ad buying and focus on tracking results.

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