Real-Time Bidding (RTB) is a digital advertising concept where advertising inventory is bought and sold on a per-impression basis, in real time. It happens within an instant, as a page loads, making decisions on which ads to load based on a variety of factors such as the user's browsing history, location, and more.
RTB is used extensively in programmatic buying, where software is used to purchase digital advertising, as opposed to traditional processes that involve RFPs, negotiations and manual insertion orders. It's a way to optimize the efficiency and effectiveness of online advertising.
The primary purpose of RTB is to allow advertisers to manage and optimize ads in real time, providing the ability to adjust on the fly and make the most of their advertising spend.
In RTB, an auction takes place in the milliseconds it takes for a webpage to load. Advertisers bid on the impression and the highest bidder wins, their ad is then loaded onto the webpage.
Some related software includes programmatic platforms like Google Ad Manager, MediaMath, and AppNexus that facilitate RTB.
The benefits of RTB include efficiency, as it's all done in real time, allowing for adjustments to be made instantaneously. It also allows for greater targeting capabilities, as ads can be served based on a variety of factors.
In conclusion, Real-Time Bidding is a vital part of online advertising, allowing for greater efficiency and precision in ad serving.