All you need to know about Real time bidding

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All you need to know about Real Time Bidding
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Real Time Bidding (RTB) Overview

• The Real Time Bidding (RTB) industry is on the
  rise as programmatic advertising.
• By the research, companies are forecasting more
  than a 20 growth in this particular market in
  United States.
• This will be translated to billions of dollars
  not mentioning to other markets like Asia and
  Europe which have a growing interests in a
  programmatic approach to advertising as well.

There is an another report from Juniper Research,
where it has estimated that the algorithm that
have been used in bidding within RTB networks can
be generate more than 40 billion annually in
2021 from now.
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Real Time Bidding (RTB) Overview

• The people who are in United States have the
  increased usage of internet connected devices.
• This clarifies that the focus on digital
  advertising and the adoption of real time bidding
  becoming more prevalent.
• With the unprecedented growth rates, most of
  the companies are adopting the usage of these
  programmatic advertising techniques.
• It will be very helpful in future that you
  need to clearly understand RTB if you are a
  publisher, advertiser or a marketer who works
  with both the parties.

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Real time bidding

•   It is an auction setting where the ad
  impression will be sold and bought and we cant
  even imagine that the transactions will be done
  in a blink of an eye.
• When the advertisers bid wins the auction,
  their digital ad will be instantly shown on the
  property or website of the publisher.
• The Ad exchanges and the SSP (Supply Side
  Platforms), which acts as a supporting platforms
  are also used within the process.
•  
• RTB auctions put its focus on impression based
  bidding whereas the static auctions tend to group
  the impressions by only allowing the advertisers
  to bid on them in package deals.

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How does RTB work?
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• If the user visits the website, the
  corresponding bid request will be sent to the ad
  exchange.
• This bid request will contain different types
  of information such as location, demographical
  data, information, browser history etc.
• The ad exchange passes the bid requests along
  with the list of advertisers/buyers who bid in
  real time for the ad impression to the website
  user.

• The advertiser who bids the highest amount
  will win the impression and gets its ad served
  before the site user.
• This process will be repeated for every ad
  unit of the website property page. This will take
  only 100 milliseconds for receiving the bid
  request and serving the ad.

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Real time bidding V/s Programmatic advertising
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• It might be easy to get all the terms within
  the digital advertising industry.
• If you wonder why RTB v/s Programmatic
  advertising, let me clarify that both are not the
  same thing.
• You can think that programmatic advertising
  is the king of the technology driven digital ad
  for selling and buying while RTB is a critical
  part of facet thereof.
•  

• Real Time Bidding (RTB) plays a very important
  role within the programmatic kingdom and it can
  be classified as a type of programmatic
  advertising but not the programmatic advertising
  itself.
• Some of the publishers sell their inventory
  even without the user of RTB through the methods
  such as programmatic guaranteed or direct.

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RTB advertising V/s Ad exchanges
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• Ad exchanges play a vital role within the
  programmatic advertising and an important cog in
  the RTB machine.
• The process of ad inventory have bought and
  sold on a per impression basis.
• Publishers and advertisers come together to
  trade the digital ad inventory by having the ad
  exchange as a platform.
• Ad exchange uses the Demand Side Platform to
  assess the ad inventory that is available to the
  advertisers.
• If the impression got a match with the
  advertisers target audience, a bid will be
  placed via the DSP and if the ad got won, then it
  will be delivered to the publishers website.

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Real time bidding v/s Demand Side Platforms

• Demand Side Platform (DSP) is a component of
  RTB which is the most important aspect in
  programmatic advertising.
• DSPs are programs where the digital ad
  inventories bought by the advertisers while the
  RTB acts as a mechanism to purchase that
  inventory.
• It benefits the advertiser and helps gaining
  the access to various RTB exchanges via a single
  access panel for ease of use and has efficiency
  in ad campaign management.
• DSPs buy the impression which is based on
  audience information such as behavioural data
  whereas the bidding technology places the bid as
  per the audience chosen.

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How RTB benefits the publishers?
Increase of remnant inventory value
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Increase of remnant inventory value

• Being a publisher, you want to legalize the
  inventory as much as possible.
• With the RTB, inventory which was previously
  not worthy or non-monetize can be utilized by the
  advertisers whose bid is based on the audience
  data.
• Approximately, there are about 40 of
  publishers have seen the difference in the
  increase of the value of their remnant inventory
  when takes part in RTB auctions.

Controlling through Supply Side Platform (SSP)

• Publishers are required to work through a
  supply side platform in order to take part in RTB
  auctions.
• Publishers can added the control over their
  inventory such as specifying that which
  advertisers can buy their ad inventory and set
  the pricing.

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Understanding the audience

• Being a publisher, it will be hard to know in
  which part of the audience deserves more
  attention.
• By using this technology publishers can
  determine what type of audiences are interested
  on advertisers the most and fetch the best
  prices.
• This will give the publisher a valuable
  insight and help to expand their websites into
  their most profitable segments.
• This would ultimately increase the inventory
  value and increases the demand for advertisers.

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Premium publishers can make use of private market
places
Direct sales can be better performed

• If a publisher would like to sell his
  inventory directly to the advertisers via SSPs,
  then the RTB can give them a most confidential
  and the valuable insights into their most
  profitable inventory segments.
• A publisher could determine on what parts are
  sought after the most, and on what prices
  inventory got sold. With this information,
  inventories can be sold directly to the
  interested parties.

• On private markets, only a particular group of
  advertisers are allowed to bid on the publishers
  ad inventory.
• With the Real Time Bidding and private
  marketplaces, publishers can sell their
  advertising stock with more transparency and
  control.

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Accurate pricing

• With the RTB, publishers receive more value
  for the inventory.
• Each impressions are bid on by the advertisers
  and at last the highest bid amount can deliver
  the impression.
• A publisher is required to use the Supply
  Side Platform (SSP) to make use of Real Time
  Bidding.

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Benefits for advertisers
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Benefits for advertisers
Better performance of campaigns Advertisers can
view and do manage the campaigns in real time
through one dashboard and bids can be adjusted
and targeting can be done as needed. This will
stay on top of the results and improve the
performance.
Deep knowledge When running the campaigns with
RTB, advertisers could transform and improve
their marketing strategies. That will help them
to learn more and grow to understand the
consumers, creative and the strategic approach
with the impression data will be presented to
them through their campaigns.
Protection of brand For an advertiser,
protecting the brand is very important. With the
RTB, advertisers can specify where to promote the
products or services and can use the ad
verification services in order to prevent their
ads from showing on unnecessary websites or
pages.
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• Ad inventory is bought on an impression basis
  through a particular range of variables thats
  what makes the targeting very focussed.
• An advertiser does not want to buy the ad
  inventory in bulk amount and wasting the money in
  untargeted or irrelevant website users.
• The advanced tools and techniques such as bid
  forecasting and frequency capping helps to
  increase the efficiency of each campaign by
  allowing the advertisers to control, test and
  evaluate the campaign variables.

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