What is real-time bidding (RTB)?

What is real-time bidding (RTB)? Real-time bidding is a fundamental component of programmatic advertising, enabling the automatic buying and selling of digital ad space in real-time on a per-impression basis. It involves an instant auction, where advertisers bid for ad space offered by publishers to target their desired audience.

Real-time bidding involves multiple advertisers bidding on a publisher's ad inventory in real time. Publishers offer ad space through an SSP (supply-side platform), and advertisers automatically bid on relevant spots through a DSP (demand-side platform). This all takes place as soon as a user lands on the page, and the highest bidder's ad is displayed in real-time.

What are the advantages and disadvantages of RTB?

Pros of real-time bidding include precise audience targeting, financial control, and real-time optimization for advertisers and publishers. Cons involve potential mismatches in ad content and context, challenges with user data accuracy, and compliance with data protection regulations.

What’s the difference between real-time bidding and header bidding?

Header bidding allows publishers to simultaneously auction inventory to multiple ad exchanges, potentially increasing revenue and exposure. In contrast, traditional RTB involves sequential auctions by each ad exchange.

What’s the difference between RTB and programmatic buying?

Programmatic buying is a model where publishers sell ad space at a negotiated price, outside the auction environment of RTB. It’s often used for premium ad placements with specific targeting requirements.

What are some RTB platform examples?

RTB platforms for advertisers (DSPs) include theTradeDesk, AdRoll, and mediasmart. For publishers (SSPs), they include Outbrain, OpenX, Magnite, Smaato, and Index Exchange.