Real Time Bidding

What is RTB?

Real-Time Bidding (Simultaneous Auctions): To bid an offer for an inventory in real-time. The offer to be made in real-time targeting is usually generated based on the historical performance of the creatives, the inventory and the user groups. Real-time (simultaneous) targeting should not be confused with the simultaneous purchase. The simultaneous purchase, is to parse out the inventory simultaneously and to price it differently instead of buying it at a fixed price. RTB can also be described as to receive information simultaneously from many different systems and exchanges and to make multiple targeting.

RTB is an auction format where the decision to purchase or sell impression is given instantaneously and programmatically, and it acts like stock market in that respect. Advertisers using RTB (receivers), would bid on the inventory, and if they earn the right to display their ads with their given offer, their ad appears on the publisher’s page simultaneously.

How Does Real Time Bidding (RTB) Work?

While an impression is being uploaded to a user’s web browser, the information of the webpage that is about to be shown to the user is transferred over “exchange” and the ads to be shown are put in auction. The highest bid wins the auction and the ads are displayed to a user.

All these transactions occur within milliseconds. Advertisers generally use the demand-side platforms in order to analyze many factors such as the user habits in previous websites, so that they can decide which ad will be bought and how much the bid would cost. For example, consider that a user has searched about shirt; when s/he visits other websites, a desirous bidder would bid higher in order to show its ads before other similar sites such as Trendyol or Markafoni. The price of this offer will be determined in real time through an auction with other advertisers willing to display their ads, this process is called the “RTB (Real-time Bidding)”.

Benefits of RTB

What does RTB facilitate?

Publishers provide the inventory for ad exchanges that undertake auctions. DSPs participate in the auction on behalf of the advertisers.

The value of bid is determined by the advertiser according to the display values, based on the values specified in the DSP. RTBs make it possible to sell the each impression for highest possible given the current situation of the market.

The winners are determined as soon as the auction ends and the ad is published on the website of publishers.

Who benefits from RTB?

– Agencies

The opportunity to have more control over the campaign performance

Effective spending

Better results for clients

– Advertisers

Wide targeting opportunity

No more wasted impressions

Maximum performance

– Publishers

To maximize profits on inventory

Manage all your inventory

Is RTB the same as programmatic advertising?

No. RTB is a kind of programmatic advertising, but not all the programmatic advertising occurs through RTB. Some “programmatic” or technology-based platforms allow publishers to sell their inventory at a fixed price instead of putting it up for an auction. This is sometimes referred as the direct programmatic.

AppNexus

AppNexus, the platform that ReklamStore uses as an Ad Exchange, is a platform founded in New York City, and specialized in the Real-time Bidding field.

According to the latest 2013 data, 16 billion ad purchase has been made through AppNexus on a daily basis and the amount is increasing every day. AppNexus is a technology that facilitates the data management through the online auction system offered, and that enables required optimizations and measures to be made very quickly and effectively.

It also integrates with ad sources such as Google’s DoubleClick and Microsoft’s AdECN. In their own words, AppNexus is the power supply of the online advertising industry that is the heart of the internet. The digital advertising allows one to reach the widest audience in the advertising field. The AppNexus technology offers the most innovative solutions and markets.

The world’s most effective advertising and media companies use AppNexus because AppNexus gives them the exact audience they want. In fact, this scheme is based on a very simple trade of values. The advertisers provide benefits the most from their ads, the parties benefit from the content as much as possible, and finally the users benefit from the internet in the most efficient way. Because the ultimate aim of AppNexus is to make the internet the best that it can, it should and imaginable.

RTB Ecosystem