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What is RTB (Real Time Bidding)?

By Scott Max

RTB or Real Time Bidding is a method of buying digital advertising online through bidding for different ad spaces. All this happens in a very short time (about 200 milliseconds) and is only possible thanks to the good use of the combo "technology" and "user data": the wonderful Big Data.

This video will help illustrate the concept:

Display advertising helps to build a brand and consolidate in the market. Of course, it is essential when it comes to attracting new customers and closing sales, but not everything is rosy. But it's not all roses. Have you ever thought that there are many people who are not interested in your services and therefore don't notice your ads? The fact is that you are still going to have to pay for those impressions.

This is one of the best ways to reach the right audience through video display, social media and mobile advertising. And all this thanks to the information collected by cookies.

Little by little step (softly, softly): the process that makes Real Time Bidding possible.

As soon as you enter a website, cookies collect user data and create a visitor profile. Advertisers and companies, who are interested in that profile, will receive an offer for which they can bid. Mostly they use DSP (Demand Side Platform) platforms. There, advertisers set buying parameters for their campaigns and place bids according to agreed data. Finally, they monitor the performance of the campaign.

On the other hand, there are the publishers, which offer the media where you can advertise. These spaces are brought together in a Sell Side Platform (SSP) that aims to optimize and maximize the revenues of the different publishers.

On the AD Exchange platforms, supply and demand meet. Here the "sellers" and "buyers" carry out the transaction in real time. On this platform, on the one hand, the various advertising spaces are collected (sent by the SSP) and, on the other hand, the auctions are created (sent to the DSPs).

Advertisers will bid for their ad to appear on the page. They can bid per single advertiser, per banner format, per floating ad, etc.

After receiving the bids, publishers will select the bid that suits them best. Finally, the ad will be placed on the winning bidder's website and at the same time they will be informed of its publication.

Benefits of RTB

With Real Time Bidding you ensure that your ad will appear in front of a potential customer profile which means a high probability of buying your services or products. Your message will not be published in front of just any user. And, of course, you are the one who chooses on which website it will appear and at what time. In addition, you have the advantage of being able to customize the message according to the type of audience in order to considerably increase the user's attention. With RTB you play it safe. You hit the center of the target. You gain in efficiency and effectiveness, that is, you improve results.

Finally, it should be made clear that this system is NOT in competition with Google Adwords. It is simply an alternative to reach a more specific and detailed audience: yours.

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