What Is Real Time Bidding and How Do You Do It?

Are you looking to understand what real time bidding (RTB) is, and how you can do it? Well, you’re in the right place.

In premise, RTB is an auction setting in which ad impressions are bought and sold, meaning transactions occur right then and there.

In this article, we will cover everything you need to know. 

So keep reading to learn more.

Real Time Bidding – What Is It?

Before we cover the comparisons of RTB against other forms of advertisement purchasing, we need to cover the basics. As they will provide you with a complete understanding of the platforms and processes that are mentioned in this article.

As mentioned earlier, RTB is a type of auction setting in which ad impressions are bought and sold, meaning transactions take place right there and then. Once the advertiser and their bid win, the digital ad is shown on the property of the publisher in that instant.

There are Supply Side Platforms and Ad Exchanges which are used often in unison with RTB. These auctions place a focus on impression-based bidding, which is unlike static auctions that compile impressions in a package that is available to advertisers.

So how does RTB work? Well, when a user chooses to visit a website, a bid request is sent to the Ad Exchange. This request has various information, such as location information, browser history, demographical data, and much more. 

The Ad Exchange then passes the request to the list of advertisers who choose to bid in real-time for that impression as it would get presented to the user. The advertiser who bids the largest amount to win the impression will get his ad served in front of the user.

This process happens to occur time after time for each ad unit for the property. This procedure occurs in a matter of menial milliseconds, including the request and ad serve. That’s called instant in many worlds.

RTB vs Programmatic Advertising

It’s quite easy to get confused in the world of digital advertising. If you’ve been wondering if RTB and Programmatic Advertising are the same things, don’t look any further.

They are definitely not. Think of Programmatic Advertising as the leader in tech-driven ad selling, and practically buying the digital world. Whereas, RTV is a critical component of it.

RTB plays its own role within the realm of Programmatic Advertising and can be at times classified as a substrate of PA, but not PA itself. Some publishers can choose to sell the property without the implications of RTB, through methods of Programmatic Direct/Guaranteed.

RTB vs Demand Side Platforms

A Demand Side Platform is part of RTB, which also makes it a part of Programmatic Advertising. In premise, a Demand Side Platform is a program that allows the transaction of digital ad inventory between a publisher and advertises, whereas RTB is the mechanism behind this transaction.

DSPs allow the advertisers to gain access to the various RTB exchanges via a single panel of access, which makes it very efficient and easy to use when it comes to ad campaign management.

DSPs purchase impressions in consideration of the behavioral data, alongside other user information. And RTB places the bid per the audience that was chosen for its certain pertinent criteria.

This means that you get to choose who you want to target, how and with what you want to approach them, and how much it will cost, based on the traffic, environment, and circumstances.

RTB vs Ad Exchange

Once again, RTB and Ad Exchanges are not the same things. Ad Exchanges are also a critical facet of Programmatic Advertising, and thus a vital part of the mechanism for RTB. 

The mechanism of action behind the purchasing/selling of ad inventory per impression criteria is determined by the Ad Exchange which allows the advertiser and publisher to meet for the transaction to occur.

The Ad Exchange uses Demand Side Platforms to analyze the ad inventory, and provide access to the advertisers. If the impression was found to match the target the audience, the bid would be placed via the DSP, and if successfully captured will get delivered to the website of the publisher.

There are many Ad Exchanges, and all of them are different, so it’s important to consult with somebody who knows the difference between them all.

So Why Is RTB Good for Advertisers?

It’s all about efficiency. Thanks to RTB, an advertiser no longer has to work directly with ad networks or publishers to accommodate pricing for traffic ads.

Using the various tech-driven advertising platforms, they have access to a wide range of inventory across a variety of websites and can choose to capture the impressions that they deem to be most valuable.

This cuts down on wasted impressions that have been targeted on useless users but also decreases the necessity for unreliable and costly human advertisement buyers. Decreased costs, increased revenue – what else does a business need?

In order to start bidding on the digital property as an advertiser, you need to make sure that your ads have passed the safety protocols from the Demand Side Platform, as well as have made adequate efforts to outline the specific requirements for your impression targeting.

The Benefits of RTB for Publishers

RTB is great for publishers for many reasons, but there are three that stand out the most. And they are:

  • Streamline Efficacy

Real time bidding has completely changed the entire outlook for the process behind sorting and placing ad impressions. It basically automated the entire trade for the publisher.  

The platforms will check the relevance of an ad, and then match with the necessary criteria parameters in an instant; thereby developing the streamlined process

  • Improved Ad Revenue + Output

Because of the nature of real-time market demand, a publisher can choose to set minimum pricing for the incoming impressions. The impressions in an RTB setting are accurately matched with the necessary parameters.

This makes the entire advertising workflow seamless, fast, flexible, and efficient, which leads to improvements in revenue.

  • Optimization

RTB allows you to track earnings in real-time, and optimize your impressions as you want to make sure that you increasing your ad revenue. Unlike a regular ad network, RTB provides you with the steering wheel. You what is happening and how it is happening, as long as you’re going with the header bidding.

How Can A Publisher Start With RTB?

Beginning a publisher’s journey with RTB might sound like a whole ordeal, but it’s quite simple. As mentioned earlier, the RTB processed involves the Ad Exchange, the Demand Side Platform, the Supple Side Platform, the advertisers & publishers. 

The SSP helps the publisher access the Ad Exchange, and then place all of their inventory for sale. So the job of a publisher is to find an adequate SSP to assist in selling the impressions.

However, that’s not all. There are some basic fundamentals that must be met to ensure that your ad space is available for sale. Once these requirements have been met, a publisher can immediately choose to place their inventory upon the Ad Exchange.

Page Views: A publisher with a minimum quantity of page views is allowed to register for Programmatic Advertising. The page view requirements will vary based on the SSP.

Target Audience: Even though having an audience is not critical, SSPs often prefer to accept publishers who have built specific demography for their content. IT might be niched-based, location-based, behavioral-based. But it really does improve your sales if your audience is segmented.

Avoid Fraudulent Content: Even though this is quite simply the most noted requirement, some publishers disregard it. As long as your content is safe and does not harm the partner identity in any way, then you’re fine.

Traffic Referrals: As an RTB publisher, you will be getting traffic from many sources, such as Social Media, Google, other search engines. However, f for direct referrals and search engine traffic. An SSP might choose to reject if your traffic is primarily from social media.

Also, when choosing an SSP for yourself, make sure that they provide adequate service and support. And that the optimization and analytics dashboard allows you to control and track your inventory.

RTB Solution for You

Now that you know what real time bidding is and how it works, you are well on your way to making use of it to improve your business results. However, it might seem infuriatingly daunting to learn how to use and even find a quality platform to participate in RTB.

So that’s where we come in. At GoFloridaSEO, we can take care of your RTB, and make sure that you get the possible impressions. If you’re interested in working with us, get in touch and we will happily accommodate your needs.

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