What is RTB (Real Time Bidding)?

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.

How does RTB Work?

Real-time bidding (RTB) is a complex process that involves multiple players and technologies. At its core, RTB is an auction-based advertising model that enables advertisers to bid on ad inventory in real-time. The process works as follows:

A. Real-time Bidding Process

1. A user visits a website or mobile app that has ad space available.

2. The website or app sends a request for an ad to an ad exchange or supply-side platform (SSP).

3. The SSP sends the request to multiple demand-side platforms (DSPs), which are used by advertisers to manage their ad campaigns.

4. Advertisers that are interested in bidding on the ad inventory receive the request from the DSP.

5. Advertisers analyze the request and decide whether or not to place a bid.

6. Advertisers that choose to bid enter a real-time auction where they compete with other advertisers.

7. The highest bidder wins the auction and their ad is served to the user.

B. Players Involved in RTB

RTB involves multiple players, including publishers, ad exchanges, SSPs, DSPs, and data management platforms (DMPs). The following are the key players involved in RTB:

1. Publishers: Websites or mobile apps that have ad space available for purchase.

2. Ad Exchanges: Platforms that connect publishers and advertisers, enabling them to buy and sell ad inventory in real-time.

3. SSPs: Platforms that enable publishers to manage and sell their ad inventory to multiple ad exchanges and DSPs.

4. DSPs: Platforms that enable advertisers to manage their ad campaigns and bid on ad inventory in real-time.

5. DMPs: Platforms that collect, manage, and analyze data to help advertisers make informed decisions about their ad campaigns.

C. Advantages of RTB

RTB offers several advantages over traditional advertising models, including the following:

1. Increased Efficiency: RTB enables advertisers to purchase ad inventory in real-time, resulting in increased efficiency and reduced waste.

2. Transparency: RTB provides greater transparency into the ad buying process, enabling advertisers to see where their ads are being placed and how much they are paying.

3. Targeting: RTB enables advertisers to target specific audiences based on a variety of data points, including demographics, location, and browsing behavior.

4. Cost-Effective: RTB allows advertisers to bid on ad inventory based on their budget, resulting in more cost-effective campaigns.

In summary, RTB is an auction-based advertising model that enables advertisers to bid on ad inventory in real-time. RTB involves multiple players and technologies, including publishers, ad exchanges, SSPs, DSPs, and DMPs. RTB offers several advantages over traditional advertising models, including increased efficiency, transparency, targeting, and cost-effectiveness.

RTB vs. Traditional Advertising

RTB differs significantly from traditional advertising models, such as print, radio, and television advertising. The following are some of the key differences between RTB and traditional advertising:

A. Differences between RTB and Traditional Advertising

1. Targeting: RTB enables advertisers to target specific audiences based on a variety of data points, while traditional advertising relies on broader demographic targeting.

2. Real-time: RTB operates in real-time, enabling advertisers to purchase ad inventory and place ads in a matter of milliseconds. Traditional advertising typically involves longer lead times and less flexibility.

3. Transparency: RTB provides greater transparency into the ad buying process, enabling advertisers to see where their ads are being placed and how much they are paying. Traditional advertising offers less transparency and can be more difficult to measure.

4. Cost-effectiveness: RTB allows advertisers to bid on ad inventory based on their budget, resulting in more cost-effective campaigns. Traditional advertising models often require higher budgets and may involve more waste.

B. Advantages of RTB over Traditional Advertising

RTB offers several advantages over traditional advertising models, including the following:

1. Targeting: RTB enables advertisers to target specific audiences based on a variety of data points, resulting in more relevant and effective ads.

2. Flexibility: RTB operates in real-time, enabling advertisers to adjust their ad campaigns on the fly and optimize their use of resources.

3. Efficiency: RTB allows advertisers to purchase ad inventory in real-time, resulting in increased efficiency and reduced waste.

4. Cost-effectiveness: RTB allows advertisers to bid on ad inventory based on their budget, resulting in more cost-effective campaigns.

In summary, RTB differs significantly from traditional advertising models, offering advantages in targeting, flexibility, efficiency, and cost-effectiveness. By leveraging real-time data and auction-based models, RTB enables advertisers to purchase ad inventory more efficiently, reach specific audiences more effectively, and achieve better returns on investment.

Some Benefits of RTB

RTB provides several benefits to advertisers, including increased efficiency, greater targeting capabilities, improved ROI, and better ad relevancy. The following are some of the key benefits of RTB:

A. Increased Efficiency and Transparency

RTB enables advertisers to purchase ad inventory more efficiently and with greater transparency. The auction-based model of RTB enables advertisers to bid on ad inventory in real-time, resulting in reduced waste and increased efficiency. In addition, RTB provides greater transparency into the ad buying process, enabling advertisers to see where their ads are being placed and how much they are paying.

B. Ability to Target Specific Audiences

RTB provides advertisers with greater targeting capabilities than traditional advertising models. By leveraging real-time data and advanced targeting technologies, advertisers can target specific audiences based on a variety of data points, including demographics, browsing behavior, and location. This results in more relevant and effective ads that are more likely to drive conversions and generate ROI.

C. Better ROI

RTB can help advertisers achieve better returns on investment by enabling them to purchase ad inventory more efficiently and target specific audiences more effectively. This results in campaigns that are more cost-effective and generate higher returns. In addition, RTB provides advertisers with greater visibility into their ad campaigns, enabling them to optimize their use of resources and achieve better results.

Improved Ad Relevancy

By leveraging real-time data and advanced targeting technologies, RTB enables advertisers to serve more relevant ads to their target audiences. This results in improved ad relevancy and increased engagement, as users are more likely to interact with ads that are relevant to their interests and needs. This can help advertisers drive conversions and build stronger relationships with their customers.

In summary, RTB provides several benefits to advertisers, including increased efficiency and transparency, greater targeting capabilities, improved ROI, and better ad relevancy. By leveraging real-time data and advanced targeting technologies, advertisers can purchase ad inventory more efficiently, reach specific audiences more effectively, and achieve better returns on investment.

Limitations and Challenges of RTB

Despite the many benefits of RTB, there are also several challenges that advertisers must be aware of. These challenges include privacy concerns, ad fraud and brand safety issues, and the complexity of the RTB ecosystem.

A. Privacy Concerns

RTB relies heavily on user data to target ads effectively. However, this data can also raise privacy concerns, particularly in light of recent data breaches and concerns over online privacy. Advertisers must be careful to handle user data responsibly and comply with relevant regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States.

B. Ad Fraud and Brand Safety Issues

RTB can also be susceptible to ad fraud and brand safety issues. Ad fraud involves fraudulent activity designed to generate ad revenue, while brand safety issues involve ads being placed next to inappropriate or harmful content. Advertisers must take steps to prevent ad fraud and ensure that their ads are placed in safe and appropriate environments.

C. Complexity of the RTB Ecosystem

Finally, the RTB ecosystem can be complex and challenging to navigate. The many players involved in RTB, including publishers, ad exchanges, SSPs, DSPs, and DMPs, can make it difficult for advertisers to manage their campaigns effectively. Advertisers must carefully select their partners and platforms and invest in the resources and technologies needed to manage their campaigns effectively.

In summary, RTB presents several challenges for advertisers, including privacy concerns, ad fraud and brand safety issues, and the complexity of the RTB ecosystem. Advertisers must be aware of these challenges and take steps to mitigate their impact by handling user data responsibly, preventing ad fraud and ensuring brand safety, and investing in the resources and technologies needed to manage their campaigns effectively. By addressing these challenges, advertisers can take full advantage of the many benefits of RTB and achieve better returns on investment.

Best Practices for RTB

To ensure that RTB campaigns are effective and successful, advertisers should follow best practices that include using reputable partners and platforms, setting clear campaign objectives, using data and analytics to optimize campaigns, and monitoring and optimizing for brand safety and ad fraud.

A. Use Reputable Partners and Platforms

The success of RTB campaigns depends on the quality of the partners and platforms used to manage them. Advertisers should carefully select their partners and platforms based on factors such as reputation, performance, and reliability. This can help ensure that campaigns are managed effectively and that ad inventory is purchased and placed in safe and appropriate environments.

B. Set Clear Campaign Objectives

To achieve the best results from RTB campaigns, advertisers should set clear campaign objectives that align with their overall business goals. This can include objectives such as increasing brand awareness, driving conversions, or generating leads. By setting clear objectives, advertisers can develop campaigns that are tailored to their specific needs and are more likely to achieve their desired outcomes.

C. Use Data and Analytics to Optimize Campaigns

RTB campaigns rely heavily on data and analytics to optimize performance and drive better results. Advertisers should use data and analytics to track key metrics such as click-through rates, conversion rates, and cost per acquisition. This can help advertisers identify areas for improvement and optimize their campaigns for better performance.

D. Monitor and Optimize for Brand Safety and Ad Fraud

RTB can be susceptible to brand safety issues and ad fraud. Advertisers should take steps to prevent these issues by monitoring their campaigns closely and investing in technologies that can detect and prevent fraudulent activity. Advertisers should also work with partners and platforms that have strong brand safety measures in place to ensure that their ads are placed in safe and appropriate environments.

In summary, following best practices is essential for the success of RTB campaigns. Advertisers should use reputable partners and platforms, set clear campaign objectives, use data and analytics to optimize campaigns, and monitor and optimize for brand safety and ad fraud. By following these best practices, advertisers can achieve better results from their RTB campaigns and drive greater returns on investment.

Real-Time Bidding: The Future of Advertising Success

Real-time bidding (RTB) is a powerful advertising model that enables advertisers to purchase ad inventory in real-time and target specific audiences more effectively. RTB offers several advantages over traditional advertising models, including increased efficiency and transparency, greater targeting capabilities, improved ROI, and better ad relevancy.

However, RTB also presents several challenges, including privacy concerns, ad fraud and brand safety issues, and the complexity of the RTB ecosystem. To ensure the success of RTB campaigns, advertisers should follow best practices that include using reputable partners and platforms, setting clear campaign objectives, using data and analytics to optimize campaigns, and monitoring and optimizing for brand safety and ad fraud.

By addressing these challenges and following best practices, advertisers can take full advantage of the many benefits of RTB and achieve better returns on investment.