Real time bidding is an auction for online advertising spaces in real-time.
Features of real time bidding and the use of impressions in programmatic advertisement
The fundamental concept to understand what real time bidding is and how it works (literally bids in real time) is the impression.
In online auctions, an impression is the number of times that content is displayed to end users.
The real time bidding, which is part of so-called programmatic advertisement, is a negotiation on the impressions of online advertising.
In fact, the banners of ads will load the content of whoever has paid more for that impression (AdSense is based on this logic). The buyer purchases impressions through the Ad exchange, the system that allows them to monitor the auction.
Obviously, the user doesn't notice anything, as the process takes just a few moments.
Like all digital advertisement tools, these new forms of advertising are automated and aim to target an increasingly profiled audience through more and more complex software and platforms, known as DSP (demand-side platform).
The players in real time bidding
The figures in real time bidding are mainly two:
- The advertiser: who will place the banner content in the selling space if they win the auction
- The publisher: who will sell the online advertising space
The advantages of real time bidding for advertisers
As mentioned, the benefits for the auction winner are related to user profiling:
- The impressions that are bought are highly targeted
- Identify the target audience for the banner meticulously
- Allows for fully scalable campaigns (improvable over time)
The RTB is an excellent opportunity for both small and large companies to maximize online investments and plan their strategies accurately.
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