Articles on: Ad Formats

What is Real Time Bidding?

Real-time bidding (RTB)

Real-Time Bidding is an auction setting where ad impressions are sold and bought, and transactions take place in a blink of an eye. Once an advertiser’s bid wins the auction, their digital ad is instantaneously shown on the website or property of the publisher. RTB auctions put the focus on impression-based bidding whereas static auctions tend to group impressions only allowing advertisers to bid on them in package deals.

How does Real-Time Bidding work: When a user visits a website, a corresponding bid request is being sent to the platform the supply source is connected with via RTB endpoint.

This bid request then contains different types of information such as demographical data, location information, browser history, etc. The platform then passes the bid requests along to its list of advertisers/buyers who are connected to the platform and bid in real time for the ad impression as it gets presented to the website user. The advertiser that bids the highest amount wins the impression and gets its ad served in front of the site user.

This same process gets repeated time and time for every ad unit of the website property page. This procedure takes place within 100 milliseconds, including receiving the bid request and serving the ad. If you have been asking what is the difference between Real-time bidding and Programmatic advertising, you can think of Programmatic advertising as being a technology-driven digital ad selling and buying while Real Time Bidding is one critical part or facet thereof. RTB plays a significant role within the programmatic arena, and rather can be classified as a type of Programmatic advertising, not Programmatic advertising itself. Some publishers can even sell their inventory without the use of RTB through methods such as programmatic guaranteed or direct

EZmob & Real time bidding
EZmob platform is originally designed to support Real-time bidding. It enables to connect supply and demand to EZmob via RTB endpoints creating for Gamoshi customers their own private marketplace. It can also connect demand and supply that are not using RTB translating their responses/bid requests to RTB protocol representing them as an RTB partner.

We support IAB RTB protocols 2.0-2.5.

You can connect demand partners that are using Real-time bidding via their RTB endpoint, Tags, Header bidding or custom integrations - they will all be translated (if needed) to an RTB response that will bid for the supply partners requests that are connected with them.

You can connect supply partners that are using Real-time bidding via RTB endpoint given by EZmob or direct publishers via EZmob tag. The supply will be presented to the demand partners connected with it as an RTB request.

Benefits for publishers
Technology-driven accurate pricing: Publishers receive more value for their inventory with RTB as each impression can be bid on by advertisers and precisely the highest bid amount can deliver the impression. A publisher frequently needs to use an SSP (Supply Side Platform) to make use of Real-Time Bidding.

Remnant inventory value increase: As a publisher, you want to monetize as much of your inventory as possible. With RTB, inventory that was previously deemed non-monetized or not worthy can be utilized by advertisers who bid based on the audience data. Econsultancy reported that over 40% of publishers saw an increase in the value of their remnant inventory when taking part in RTB auctions.

Control via SSPs: Sometimes a publisher needs to work through a Supply Side Platform to take part in RTB auctions. However, this means that the publisher has added control over their inventory such as specifying which advertisers can buy their ad inventory and set the pricing.

Understanding their audience better: As a publisher, it’s often hard to know which segment of your audience deserves the most attention, at least from a monetary perspective. With Real Time Bidding publishers can determine which types of audiences interests advertisers the most and fetches the best prices. This can give a publisher valuable insight and help them expand their websites into their most profitable segments, ultimately increasing their inventory value and increasing demand from advertisers.

For premium publishers make use of private marketplaces: With private markets, only a set group of advertisers are allowed to bid on a publisher’s ad inventory. With RTB and private marketplaces, publishers can sell their advertising stock with even more transparency and control.

Better performing direct sales: If a publisher wants to sell his inventory directly to advertisers, then Real Time Bidding can give them valuable insight into their most profitable inventory segments. A publisher can determine what parts are sought after the most, prices inventory is sold at and uses this information to sell their inventory directly to interested parties successfully.

Benefits for advertisers
Less wasteful media buying: With Real Time Bidding, ad inventory is bought on an impression basis through a range of variables which makes targeting very focused. An advertiser does not have to buy ad inventory in bulk and risk wasting money on untargeted or irrelevant website visitors. Advanced techniques and tools such as frequency capping and bid forecasting can further increase the efficiency of each campaign by allowing advertisers to test, control, evaluate and even predict certain campaign variables.

Better performing campaigns: Advertisers can view and manage their campaigns in real time through one dashboard and adjust bids and targeting as needed thus staying on top of results and improving performance.

In-depth knowledge: While running campaigns with RTB, advertisers can transform and improve their marketing strategies. They can learn more and grow to understand their consumers, creative and strategic approach with the impression data presented to them through their campaigns.

Brand protection: With Real Time Bidding advertisers can specify where to promote their products or services and use ad verification services to prevent their ads from showing on illicit websites or pages.

Also Read:

Three Steps to Set Up Your Initial Programmatic Ad Campaign

Updated on: 14/09/2022

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