RTB Advertising: Aspects We Should Know Before Choosing It

Real Time Bidding is very similar to an ad exchange. There is an inventory that is exchanged between advertisers and publishers. Publishers auction certain advertising spaces, providing user data, as well as the environment in which the ad will be published.

The advertising companies make their bid for those that they consider interesting depending on their segmentation needs and specific preferences.It is a second-price auction format in rtb advertising, where the highest bid and the compensation bid are different.

How? Let’s see, it is a peculiar system, since, although the highest bidder wins, the price paid is that of the second highest offer, adding one cent. The reason for using this system is to prevent the highest bidder from overpaying for printing.

There are countless ad exchanges and publishers offer their traffic from one exchange to another until they manage to sell; this is called a waterfall. The position of each change in the cascade depends on the expected return.

The process is regulated by supply and demand platforms (SSP/DSP) that represent publishers and advertisers, respectively. The whole process happens in tenths of seconds.

The Process Unfolds As Follows:

• A person enters a page and just at that moment a browser sends a request to the server to send an ad.
• Either the AdServers, or the network, places an ad on the AdExchange.
• AdExchange provides advertisers willing to bid with a relationship to available impression inventory.
• Advertisers bid according to their preferences and needs.
• AdExchange records advertisers’ bids and provides the winning ad to the person in question.

Is Real Time Bidding Profitable?

Well, on the one hand, the publisher is delighted with the Real Time Bidding as he has no impressions left unsold. Actually, Real Time Bidding is used a lot to sell remnant traffic, that is, the traffic left over from direct offers. However, it is increasingly being used to sell premium traffic.

On the other hand, the advertiser is delighted with the huge cheap and data-rich traffic that he gets with these exchanges.

Possibility Of Fraud

Obvious profitability aside, real time bidding is not without controversy.

The main problem with programmatic Real Time Bidding is its lack of transparency. Real Time Bidding is often described as a dark drawer. Advertisers naturally worry about possible price manipulation and ad placement.

There was a major disaster on YouTube recently, when ads from big brands were placed alongside extremist videos. It is an example of what can happen if there is little or no transparency. Obviously, advertisers are not entirely blameless.

By landslide, advertisers prioritize quantity over quality. That’s why brands, advertisers and media buyers didn’t mind operating in the dark.

Publishers are also not without risk: many use Google’s ad server, which prioritizes their ad exchange. Also, real time bidding is not taken into account because cascading sorting is based on estimated throughput. That is, the publisher is not guaranteed the highest price for an impression.

However, there is a demand for greater transparency of both the parts and the versions, for example. Private Real Time Bidding marketplaces are gaining in popularity and that will increase the accessibility to them.

So Why Choose Real Time Bidding?

Real Time Bidding is the most widely used programmatic buying method and will continue to be… at least for the foreseeable future. Why?. Very easy, because it is by far the most accessible method for publishers large and small.

Other methods, like direct programmatic bidding, require and require scale and resources that small publishers can’t access, and so do advertisers.

That is, they get greater access to impressions at lower prices due to the large number of offers and the lower cost of acquisition.

Real time bidding has changed expectations about how media will be marketed in the future, whether through real time bidding or other methods. This applies to both digital and non-digital media.As a result, all parties must use a new language and a different way of thinking to ensure the expected result.

What Are The Main Features Of RTB?

Real time bidding is an online auction market for buying and selling prints in real time. This auction occurs in the time it takes to load a web page (micro-seconds).

Real Time Bidding programmatic buying is beneficial for publishers and advertisers. Some achieve greater efficiency by showing their ads to the right audiences and reduce wasted impressions, while others (publishers) increase the value of their ad space and improve direct sales strategy as well as pricing.

The Real Time Bidding programmatic ecosystem is multi-stage and consists of several components:

• DSP (Demand-Demand Platform): A system that allows buyers of digital ad inventory to manage myriad ad exchanges and data exchanges through a single interface.
• SSP (Supply Platform) – A platform to make it easy for publishers to manage and value their inventory (yield managers and optimizers)
• Ad Networks: A company that aggregates publishers’ supply of ad space, ranks it, and resells it to advertisers in bulk.
• Agency Management (ATD): A media seller and reseller that manages programmatic media.
• Data Providers (DMP): A system that allows publishers and advertisers to manage data.
• Dynamic creative optimization tool: Is a tool that helps advertisers estimate and optimize creative elements in real time by identifying which are the best performing combinations for advertising campaigns.
• Ad verification and brand protection platforms: It is a platform that investigates audiences, media and advertisers ensuring that the ads are placed correctly.

Each ad must be dynamic, taking into account and taking advantage of the signals that the audience emits using programmed media buying so that the creativity is relevant.

This can be done using third party data; demographic data, location and previous behavior on the website to consistently adapt the call to action, as well as the image or the content of the ads, ensuring that the message involves the user. This alone can double performance in engagement rates and increase engagement by 50%.

To understand the logic around this topic, imagine a chocolate bar. The chocolate bar is sweet. Sweet is the characteristic flavor of the chocolate bar. However, not everything that is sweet is a chocolate bar, right? Well, the same thing happens with Real Time Bidding, which is programmatic, but not everything that is programmatic is Real Time Bidding.