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Real-time bidding (RTB) is the process by which companies buy and place ads online through automated auctions. Real-time bidding takes the work out of advertising by making it possible for advertisers to place hundreds and thousands of ads online, often in less than a second, without needing to individually reach out to online publishers.
Ad Exchanges offer many benefits for both publishers and advertisers. They provide publishers with a way to manage ad position on websites, ad formats, customized styling, such as fonts, colors and other parameters. They also allow them to manage CPMs, apply sophisticated filtering and sell excess ad inventory.
Header bidding is another ad buying method that uses RTB to auction off inventory. It’s sometimes also called pre-bidding or advanced bidding because it improves upon the RTB process.
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RTB advertising is an ad buying method where parties buy and sell ad impressions in real time via automated auctions that occur while here a page or mobile app is loading.
When you arrive at a site, before the page loads, the site’s publisher sends available ad space dimensions to the supply-side platform.
Ad Exchange then reviews the received bids, removing those that are outside of publishers’ criteria. Next, it selects the auction winner and the corresponding advertising content appears on the publisher webpage.
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The latter sends an ad request to DSPs and Ad Networks which, if deciding to bid on ad, send the bids with maximum bid value along with location of advertising content.
Publisher Uses SSP: A publisher integrates their website or digital platform with a supply-side platform (SSP) to manage and offer their ad inventory to potential buyers in real-time.
Programmatic advertising involves buying and selling digital inventory using automated technology. RTB is a specific type of ad inventory buying that uses automated real-time auctions to sell impressions.
On the other side of the process, the advertisers use DSPs to manage their marketing campaigns by connecting with and purchasing ads on Ad Exchanges.
As part of the ad process, DSPs often provide their advertisers with additional data from third-party providers and enable them to complement this data with data from advertisers own systems.