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What is Real Time Bidding?

Real Time Bidding is an auction procedure in which advertisers place bids for a specific advertising space. In this procedure, an available advertising space is provided with advertising material from the highest bidder in real time. This method from online marketing is also called real time advertising
  • Automated bidding according to defined rules on advertising spaces
  • Currency is the thousand contact price
  • Customers have several set screws at their disposal

How Real Time Bidding works

Real time bids have changed the face of online advertising. Real Time Bidding refers to the buying and selling of online ad impressions via real time auctions, which take place during the time a website needs to load. These auctions are often facilitated by ad exchanges or bidding platforms. When an ad impression is loaded into a users browser, information about the page it is on and the user displaying it is passed to an ad exchange, which auctions it to the advertiser who is willing to pay the highest price for it. The bidders ad is then loaded onto the website almost immediately. The whole process takes only a few milliseconds. Advertisers typically use demand-side platforms to decide what ad impressions to buy and how much to bid. This depends on a number of factors, such as the sites they appear on and the previous behavior of the users who load them. The price of impressions is determined in real time based on the buyers willingness to pay, hence the name Real Time Bidding. In the past, advertisers used websites as a proxy for their ads. For example, if they wanted to reach sports fans, they would buy ads on a sports-related website. With the advent of real time bidding, they could target their ads to specific users instead. RTB is a type of programmatic advertising, but not all programmatic advertising uses real time bidding. Some “programmatic” or technology-driven ad platforms allow publishers to sell their inventory in advance at a fixed price rather than auctioning it. This is sometimes referred to as programmatically direct or programmatically guaranteed

The pros and cons of real time bidding

Why are real-time bids so good for advertisers? The simple answer: efficiency. With real-time bidding, ad buyers no longer need to work directly with publishers or ad networks to negotiate ad prices and serve ads. Using exchanges and other advertising technologies, they can access a wide variety of sites from a variety of inventories and select only the impressions they think are most valuable. This reduces the number of impressions wasted on the wrong users, but also minimizes the need for expensive and unreliable human ad buyers. Some major publishers are wary of real time bidding because they believe it allows advertisers to pay less for their inventory. However, they are increasingly comfortable with it, as exchanges and supply-side platforms allow them to control the minimum prices at which their inventory is sold (often referred to as the price floor). In this way, publishers can open their ads for auction, but set a reserve price that must be met for a transaction to occur. Real Time Bidding takes advantage of the fact that despite increasing bandwidth, pages typically take at least a few seconds to load completely. In the meantime, the real-time auctioning of the relevant advertising spaces can take place without any problems. The auctioning of advertising spaces in real time is of course accompanied by a certain amount of technical effort, which can result in considerable costs. However, due to the auction character of real time bidding, the advertising spaces are more expensive than “normally” purchased advertising spaces. Real time bidding offers advertisers completely new possibilities to control marketing campaigns and advertising in a targeted manner. For example, it is conceivable and feasible to only place ads on websites with good SEO or to address potential customers with their own ads exclusively at predefined times. Real time bidding is also advantageous for publishers, as all ad impressions are sold at the highest price currently available

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