Real Time Bidding and What It Means For Marketing
Traditional methods of digital advertising have become inefficient and are beginning to be considered obsolete, which is probably an insight you already have had if you find yourself on our wonderful blog! Advertisers have grown tired of paying the same price per impression, as is the case for a CPM campaign. Advertisers and publishers are requiring more effective targeting options and real time bidding (RTB) has come onto the scene and gained momentum. As mentioned previously, if you are visiting our site and blog you probably have some knowledge of the topic of programmatic and RTB, but if you don’t or feel you need a quick lesson to sharpen your marketing lingo, this blog piece is perfect for you.
What is Real Time Bidding (RTB)?
Real time bidding is a means by which advertising may be purchased on a “per impression” basis with the use of programmatic, real time auctions. When publishers take advantage of real-time bidding solutions, buyers bid on an advertising impression and, if the bid is the highest, the digital ad is instantly displayed on the publisher’s site. Real-time bidding allows advertisers to manage and optimize ads from networks which improve the efficiency of purchasing and displaying ads. The bidding system jumps into action every time a page is loaded and the winner is the advertisement that is rendered for the viewer. The drilled down targeting and cost effectiveness of RTB is revolutionizing how digital advertising is implemented.
What Is The Process?
Many professionals in the marketing industry compare real time bidding to financial markets because of the fast paced, real time auction component. The totality of real time bidding consists of three essential parts:
Demand Side Platform (DSP)
Automating the purchase of online advertising for marketing specialists requires a tool to optimize efficiency. The ability to set buying parameters and monitor campaign performance is performed on the demand site platform.
The publisher serves a primary purpose- to provide the inventory. Since real time bidding is realizing higher revenues, it is quickly growing in popularity. Publishers use Supply Side Platforms to help with the managing of their inventory.
The Ad Exchange
Ad Exchanges are the part of the process that are most like stock exchanges. However, an ad exchange is a piece of software that is used to connect advertisers and publishers in an effort to display inventory in real-time. With the use of the ad exchange, publishers are able to maximize the price for their inventory and advertisers are able to purchase impressions at specific prices that are proportionate to the actual value of each impression within their specific campaign.
What Are the Benefits?
The numbers are showing that marketing professionals prefer the real time bidding method of advertising for several reasons, including:
- Increased control over ad performance. Publishers are able to approve and vet what appears on their websites and advertisers have increased control over the audience and the price of the campaign.
- More effective, targeted results. Real time monitoring makes it easy to track results and carefully tailor campaigns.
- Increased efficiency in spending. The reduction in wasted inventory realized with CPM advertising is a clear benefit.
- Awareness of new trends. Real time analysis of trends allows campaigns to change directions quickly based on analytics.
Real time bidding is the fast-paced, exciting stock market-esque solution for modern advertisement campaigns. Targeted campaigns, efficiency and increased control allow real time bidding to function as the ideal solution for digital marketing campaigns. Now that you’ve read through this, DisplayAdTech have a very neat, interactive tree on the Display Advertising Technology landscape that you can check out here.