Real Time Bidding (RTB) Explained - TechGeek365

Real Time Bidding (RTB) Explained

real time bidding explained

Real Time Bidding has broken into digital marketing and, what is different with that trendy things, it not only remains popular but gathers high pace. More than 20% growth was tracked in the area just during the beginning of this year. This data was taken in American market, while other “colleagues” like Europe or Asia can certainly show significant results. All that means that a huge dollar roundabout was launched and it is not going to stop at all.

Focus on RTB advertising platform becomes a must as we have dramatical growth of various devices connected. Advertisers, Publishers or marketers have no way, but understand what the thing is about as otherwise you risk to miss really a lot.

RTB Advertising Platform

Actually, everything is very simple. When a user enters a connected to the platform website, a relevant offer appears. It contains non-personal, but useful information about location, primary age, type of the device, operation system, browser version and so on. Now it is high time for Advertisers to think how much they are ready to pay for this person. They are bidding and the winner with the highest rates shows hos ad. The process is finished when the page is loaded and will be repeated with a new client.

Personalization As A Key Concept

Advertising is shifting from massive attack to personal treatment. With traditional networks Advertisers were offered to display their messages on the websites that are potentially suitable for their target audience. But thousands of people may enter a website about cooking a Shepherd’s pie, but how many of them are really interested in buying a serving spoon or a cookery book at all?

Another problem is that popular resources may contain too versatile ads: from cooking and vacuum cleaners to medical service and repair works. It will be very simple to get lost in this crowd as nobody promised you to post the ads of relevant area with you.

That’s sad to admit that money can solve a lot. But Advertisers are interested in smart expenses with maximum results. RTB was designed to save less, but with bigger outcome.

Is There A Difference Between RTB And Programmatic?

Certainly, there is. It would be more correct to think about RTB advertising as a part of programmatic approach, while the latter one is the king of the kingdom.

We can never say they are equals as some programmatic advertising can be not RTB at all, advertisers may successfully use direct or guaranteed programmatic for ads selling.

Why Should Publishers Use It?

  • They can get more money for their inventory in comparison with rates of traditional networks.
  • Even “worthless” remnant inventory can be sold, as there are advertisers that bid according to their data of the audience.
  • Better understanding of the audience, thus improving the material and website quality.

Benefits For Advertisers:

  • Wiser budget spending: you don’t pay for bulk impressions, instead, you pay for people who are very likely to be interested in you.
  • More effective campaigns.
  • Focus on brand security.
  • Better understanding of your audience.

Final Thoughts

New trends are sometimes highly welcomed and sometimes accepted very reluctantly. No one says that RTB is perfect, it does have some problems as any other thing in the world. But those who would like to try, but afraid to lose the results they have already gained, can try to combine both the approaches and see what is more perfect in each situation. If you try, you will definitely have an advantage from those who is still not ready accept new option.

About David: Techthusiast & Avid Traveler.

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