Real Time Bidding

Real time bidding is the new face of online advertising and it has completely changed the sense of online advertising. It’s a new rise to online advertising as its incredibly fast, better and precise. Through real time bidding buying and selling of different ad impressions can be done in a unbelievably fast time.

Real time bidding is a single tier architecture in which servers communicate directly with each other without any third party and execute the process of buying and selling on the basis of impressions. It all happens in a digitally created auction that decide who will be allocated with a specific type of impression.

There are many elements in real time bidding which takes part in the process but mainly Ad-exchange and Supply-Side platform (SSP) are the main supporting platforms for the entire process.

How it works:

When you are on a publisher’s website the game starts from there ! just for the recall publisher is the owner of the website that has the audience and ad space on his website which he can sell to different advertisers who wants the impressions from those audience. Ok so when you are visiting the website in the background the process is already begun a connection is established with the ad server and the ad server will connect to the SSP (Supply-Side Platform).

This SSP is usually used by publishers to monetize its ad inventory. SSP after getting all the relevant data sends the ad request to the ad exchange and the ad exchange simultaneously will be communicating with the potential buying systems that is known as DSP (Demand-Side Platform) this DSP will be conducting the Digitally created auction in which it will get bids from all around the he network and ask for the best price and the potential buyers will start bidding.

Ad exchange will decide which bid won the auction and the winning DSP will send it’s instructions to publisher’s ad server and provide it with the ad to place on the specific portion on the website now this entire process is happening in the blink of an eye. The ad server will track the overall performance of the ad for the advertisers.

Simplified RTB

All the publishers provide their inventories to the ad exchanges which will conduct the auction for them. DSP are the ones who bids on the behalf of the advertisers.

Each of the bid’s value is based on the value of the impressions which will be determined by the advertiser. This bidding activity make sure that each impression is sold at a maximum price.

Once the bidding process is completed, the winner is selected and the ad is published on the publisher’s website.

Who does RTB Benefits?

Advertisers:

  • They can easily narrow down the targeting process.
  • They can save the impressions by not letting them get wasted.

Publishers:   

  • It provides great revenue on ad inventory since buyers always maximize the value of the impressions.

So this is the simplest possible way in which you can learn about the Real Time Bidding process. It’s easy to understand and implement in the online media business.

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