A typical transaction begins with a user visiting a website. This triggers a bid request that can include various pieces of data such as the user's demographic information, browsing history, location, and the page being loaded. The request goes from the publisher to an ad exchange, which submits it and the accompanying data to multiple advertisers who automatically submit bids in real time to place their ads.
Here’s how they differ. In traditional RTB, the program evaluates bid requests from advertisers sequentially — if Buyer 1 doesn’t meet the floor price, the request moves on to Buyer 2, and so on, until the floor price is met.
Each tier of the auction possesses specific settings like the size of the ad spot and its exact platform attribution (a streaming service, website etc).
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.
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Publishers provide inventory to an ad exchange. Therefore, an ad exchange (the marketplace itself) holds the inventory while a Demand-Side Platform, which acts on behalf of advertisers, is the place where the buyers bid for the inventory depending on the impressions they have. Everything is rather forthright here: it’s the highest bidder’s ad that will be displayed.
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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This enables advertisers to bid in real-time for the opportunity to show an ad to a specific user, based on their demographic or behavioral profile, maximizing the relevance and efficiency of ad placements.
Again, real-time bidding revolutionizes the way digital ad spaces are bought and sold, leveraging technology for instantaneous auctions. get more info Here’s a breakdown of the process:
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Real-time bidding is beneficial for publishers and advertisers alike. Although RTB does play a compelling role within the programmatic niche, programmatic technology extends far beyond just RTB.
Cost-effective for advertisers: When advertisers save money, publishers benefit too. Brands that feel they’re choosing the more cost-effective solution will be more likely to put their trust in publishers using RTB, resulting in less unused ad inventory and increased ad revenue.