Real time bidding

Category: Others/ Misc

Presentation Description

It is an auction setting where the ad impression will be sold and bought and we can’t even imagine that the transactions will be done in a blink of an eye. When the advertiser’s bid wins the auction, their digital ad will be instantly shown on the property or website of the publisher.


Presentation Transcript

Slide 1:

All you need to know about Real Time Bidding

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Real Time Bidding (RTB) Overview: The Real Time Bidding (RTB ) industry is on the rise as programmatic advertising. By the research, companies are forecasting more than a 20% growth in this particular market in United States. This will be translated to billions of dollars not mentioning to other markets like Asia and Europe which have a growing interests in a programmatic approach to advertising as well . There is an another report from Juniper Research, where it has estimated that the algorithm that have been used in bidding within RTB networks can be generate more than $40 billion annually in 2021 from now.

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The people who are in United States have the increased usage of internet connected devices. This clarifies that the focus on digital advertising and the adoption of real time bidding becoming more prevalent. With the unprecedented growth rates, most of the companies are adopting the usage of these programmatic advertising techniques. It will be very helpful in future that you need to clearly understand RTB if you are a publisher, advertiser or a marketer who works with both the parties. Real Time Bidding (RTB) Overview:

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  It is an auction setting where the ad impression will be sold and bought and we can’t even imagine that the transactions will be done in a blink of an eye. When the advertiser’s bid wins the auction, their digital ad will be instantly shown on the property or website of the publisher. The Ad exchanges and the SSP (Supply Side Platforms ), which acts as a supporting platforms are also used within the process.   RTB auctions put its focus on impression based bidding whereas the static auctions tend to group the impressions by only allowing the advertisers to bid on them in package deals. Real time bidding:

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How does RTB work?

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The advertiser who bids the highest amount will win the impression and gets its ad served before the site user. This process will be repeated for every ad unit of the website property page. This will take only 100 milliseconds for receiving the bid request and serving the ad. If the user visits the website, the corresponding bid request will be sent to the ad exchange. This bid request will contain different types of information such as location, demographical data, information, browser history etc. The ad exchange passes the bid requests along with the list of advertisers/buyers who bid in real time for the ad impression to the website user.

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Real time bidding V/s Programmatic advertising:

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Real Time Bidding (RTB) plays a very important role within the programmatic kingdom and it can be classified as a type of programmatic advertising but not the programmatic advertising itself. Some of the publishers sell their inventory even without the user of RTB through the methods such as programmatic guaranteed or direct. It might be easy to get all the terms within the digital advertising industry. If you wonder why RTB v/s Programmatic advertising, let me clarify that both are not the same thing. You can think that programmatic advertising is the king of the technology driven digital ad for selling and buying while RTB is a critical part of facet thereof.

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RTB advertising V/s Ad exchanges:

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Ad exchanges play a vital role within the programmatic advertising and an important cog in the RTB machine. The process of ad inventory have bought and sold on a per impression basis . Publishers and advertisers come together to trade the digital ad inventory by having the ad exchange as a platform. Ad exchange uses the Demand Side Platform to assess the ad inventory that is available to the advertisers. If the impression got a match with the advertiser’s target audience, a bid will be placed via the DSP and if the ad got won, then it will be delivered to the publisher’s website.

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Real time bidding v/s Demand Side Platforms: Demand Side Platform (DSP ) is a component of RTB which is the most important aspect in programmatic advertising. DSPs are programs where the digital ad inventories bought by the advertisers while the RTB acts as a mechanism to purchase that inventory. It benefits the advertiser and helps gaining the access to various RTB exchanges via a single access panel for ease of use and has efficiency in ad campaign management. DSPs buy the impression which is based on audience information such as behavioural data whereas the bidding technology places the bid as per the audience chosen.

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How RTB benefits the publishers? Increase of remnant inventory value:

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Being a publisher, you want to legalize the inventory as much as possible. With the RTB, inventory which was previously not worthy or non-monetize can be utilized by the advertisers whose bid is based on the audience data. Approximately, there are about 40% of publishers have seen the difference in the increase of the value of their remnant inventory when takes part in RTB auctions. Increase of remnant inventory value: Controlling through Supply Side Platform (SSP): Publishers are required to work through a supply side platform in order to take part in RTB auctions. Publishers can added the control over their inventory such as specifying that which advertisers can buy their ad inventory and set the pricing.

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Understanding the audience: Being a publisher, it will be hard to know in which part of the audience deserves more attention. By using this technology publishers can determine what type of audiences are interested on advertisers the most and fetch the best prices. This will give the publisher a valuable insight and help to expand their websites into their most profitable segments. This would ultimately increase the inventory value and increases the demand for advertisers.

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Direct sales can be better performed: If a publisher would like to sell his inventory directly to the advertisers via SSPs, then the RTB can give them a most confidential and the valuable insights into their most profitable inventory segments. A publisher could determine on what parts are sought after the most, and on what prices inventory got sold. With this information, inventories can be sold directly to the interested parties. Premium publishers can make use of private market places: On private markets, only a particular group of advertisers are allowed to bid on the publisher’s ad inventory. With the Real Time Bidding and private marketplaces, publishers can sell their advertising stock with more transparency and control.

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Accurate pricing: With the RTB, publishers receive more value for the inventory. Each impressions are bid on by the advertisers and at last the highest bid amount can deliver the impression. A publisher is required to use the Supply Side Platform (SSP) to make use of Real Time Bidding.

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Benefits for advertisers :

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Better performance of campaigns: Advertisers can view and do manage the campaigns in real time through one dashboard and bids can be adjusted and targeting can be done as needed. This will stay on top of the results and improve the performance. Deep knowledge: When running the campaigns with RTB, advertisers could transform and improve their marketing strategies. That will help them to learn more and grow to understand the consumers, creative and the strategic approach with the impression data will be presented to them through their campaigns. Protection of brand: For an advertiser, protecting the brand is very important. With the RTB, advertisers can specify where to promote the products or services and can use the ad verification services in order to prevent their ads from showing on unnecessary websites or pages. Benefits for advertisers :

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Ad inventory is bought on an impression basis through a particular range of variables that’s what makes the targeting very focussed. An advertiser does not want to buy the ad inventory in bulk amount and wasting the money in untargeted or irrelevant website users. The advanced tools and techniques such as bid forecasting and frequency capping helps to increase the efficiency of each campaign by allowing the advertisers to control, test and evaluate the campaign variables.

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