Real Time Bidding (RTB) is a term used in online marketing . It is a new method by which advertisers in the delivery of online advertising automatically, and in real time (real time) on ad space and ad impressions can offer on the internet. Per ad impression the advertising medium of the respective highest bidder will be delivered. Real Time Bidding has its origin in the auction model for text ads from Google. In the U.S., real-time bidding has long been one of the rapidly growing trends of online advertising market. Forrester Research reported a turnover of $353 million over RTB in a study for the year 2010. In 2011, revenue is expected to double and by 2016 it is expected to grow by $692 million.
Through the collaboration that real time bidding creates, among other things, the advantage that advertisers win with, is the support of optimization and flexible reporting technologies. This gives more control over your campaigns. Publishers, on the other hand, try to achieve generally higher prices for their ad space when gaining the highest bid for each ad impression. Through the combination of real-time bidding and methods of targeting offers several other advantages:
Businesses can use for example in real-time bidding their site visitors and their search queries cookies "Mark" and achieve again when they visit other sites (retargeting ). In real time, the company can now offer advertising space to the corresponding webpage about the visitor such as applying a second time specifically appealing and the product previously looking for this.
Let us explain with a simple real time example, a user heads to a page on a publisher’s website, causing it to start loading. In the same instant the publisher sends out a “bid request” to thousands of potential advertisers saying, “We’ve got this user who is 30, Indian, male and based in New Jersey, US, and recently searched for return air tickets to Delhi, opening a page on our site. How much are you willing to bid for being the only ad on this page?” Within about 100 milliseconds the publisher gets bids from different advertisers, which then analyses to figure out the highest bidder and the brands being advertised. The winner is alerted by the publisher and allowed to place its ad on the page. The remarkable thing about this entire process is how fast and how often it takes place. The entire series of to-and-from communication between publisher and advertisers takes place in 300-500 milliseconds, causing no visible delay to the user. This process is repeated for every ad slot on a page.
Why Real-Time Bidding?
Real-time bidding is a new display ad solution that is revolutionizing the advertising industry, allowing advertisers to:
- Bid in real-time on available ad inventory
- Maximize results within shorter timelines
- Improve budget flexibility
- Set price based on site content relevance
Display advertising traditionally required advertisers to pay a fixed rate for a certain number of impressions, even though some of those impressions might be less effective at certain times of the day. RTB allows larger advertisers to set their price based on a publisher’s relevance to their campaign and smaller advertisers to advertise whenever the current bid meets their budget.
Online publishers auction off their available ad inventory as an individual impression in real time via the ad exchange. RTB allows advertisers to decide in real-time the value of an ad impression and decide whether or not to bid for that impression based on its value to their campaign.