Real-Time Bidding (RTB) is a dynamic and automated process in digital advertising where ad impressions are auctioned in real time.
Real-Time Bidding (RTB) is a type of digital advertising that involves an instantaneous auction, occurring within milliseconds, where advertisers bid to serve their ads to specific users on specific websites. This process is automated and takes place in the time it takes a webpage to load.
In the context of digital marketing, RTB is used in programmatic buying where the price of an ad impression is determined in real time. It involves three main components: a demand-side platform (DSP), a supply-side platform (SSP), and an ad exchange. The DSP represents the advertiser, the SSP represents the publisher, and the ad exchange hosts the auction.
Real-Time Bidding allows advertisers to manage and optimize ads in real time, giving them the ability to target specific audiences and adjust their bidding strategies based on performance.
When a user visits a website, information about the user and the webpage is sent from the SSP to the ad exchange. Advertisers on the DSP can then evaluate this information and place bids accordingly.
There are several software and platforms that support Real-Time Bidding, including Google's DoubleClick, MediaMath, and DataXu.
The main benefits of Real-Time Bidding include cost efficiency, precise targeting, real-time insights, and scalability.
In conclusion, Real-Time Bidding is a dynamic and efficient way of buying and selling online ad impressions. It allows for precise targeting and real-time optimization, making it a powerful tool for advertisers.