RTB - Real Time Bidding
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Discovered in 2009, RTB, short for Real Time Bidding , has transformed so-called Performance marketing into a reality. Not only has it helped reduce the costs of online campaigns , but it has also drastically changed the approach to how we were targeting our audiences, leading to higher conversions and increased ROI on marketing actions.
Real Time Bidding is emerging as a promising way of advertising because it saves costs for advertisers and increases ROI thanks to the precise segmentation of the target. Do you want to know how to carry out an effective RTB strategy? Then you are in the right place. In this post we explain the keys to achieving it. Keep reading!
Page Contents
1. What is RTB?
3. Objective of RTB
4. Why Real Time Bidding is important
5. How Real Time bidding works
6. RTB: advantages and disadvantages of this advertising system
7. Keys to an RTB strategy
8. Difference between Programmatic Buying and Real Time Bidding (RTB)
9. RTB Platform: Ad Exchange
10. How you can maximize your income with RTB or Real Time Bidding
11. RTB Agency
1. What is RTB?
First of all, it is essential that you fully understand what RTB means, as it is a concept that can seem somewhat complex at first. Simply put, Real Time Bidding is an online advertising space auction process that happens in a matter of thousandths of a second and takes place in real time.
Real Time Bidding or RTB has revolutionised the digital advertising scene . Thanks to it we can fine-tune who our ads are shown to, thus guaranteeing the impact on our target audience . If you have a business, it is important that you know about this system based on programmatic advertising , which is in full expansion. The Vocento communications group estimates that very soon 50% of the advertising it will receive will be of this type and, in fact, it has recently launched - together with Prisa and Godó - the WEMASS platform for the joint sale of programmatic advertising.
Blue CTA digitalization
2. Programmatic Purchase and Real Time Bidding
Both services are quite similar, which is why people often get confused and consider them to be the same service, but this is not the case. Programmatic buying does not necessarily occur in real time.
Programmatic buying , for example, can involve purchasing inventory at a guaranteed price in advance. This is known as a “deal” and is an agreement between both parties. Real -time bidding, on the other hand, always occurs in real time.
Real-time bidding is the process of negotiating advertising inventory, being related and closely linked to the concept of programmatic media buying.
However, although we often use both concepts interchangeably, the terms are not identical in meaning. “Programmatic” describes the process of managing advertising inventory and connecting publishers with advertisers, which happens automatically, thanks to special algorithms.
Programmatic buying collects and aggregates data about ad impressions , including location, demographics, and audience interests, to present them in a convenient way. Moreover, advertisers have direct access to the platforms where publishers make their inventory available to advertisers, so they can see and waive the prices offered, or the risks they incur by involving more intermediaries in the media buying process.
3. Objective of RTB
The goal of RTB is to buy only those spaces that our target audience will visit. Predicting this is possible thanks to:
3.1 Information collected by cookies
Every time a user enters a website, a profile of that user is created. How? Thanks to small packets of data that we call cookies . Their purpose is to offer the visitor the most personalized content possible based on their habits. Cookies allow us to know when someone last visited a certain website and to know which items they have added to the shopping cart of an online store.
3.2 Big Data Management
This technology is capable of managing huge volumes of data to detect patterns and trends that enable informed decisions to be made.
3.3 Ad Exchange platforms
They are where supply and demand meet, that is, advertisers and websites that offer their advertising space to make money. When a user visits one of these websites, their data - provided by cookies and processed by Big Data - is processed in real time.
RTB Ad Exchange platforms combine supply and demand in the most efficient way possible, taking into account the advertiser's bid and the degree of affinity of the ad with the user visiting the website. Ultimately, these platforms function as intermediaries between sellers of digital advertising space (SSPs) and buyers (DSPs), who in turn also use their own management platforms, which are explained in the following two points.
Some of the main Ad Exchange platforms are:
Facebook Ad Exchange
Microsoft Advertising Ad Exchange
Audience Square
Google DoubleClick Ad Exchange
The Ad Exchange platform is a system that allows the programmatic purchasing model, where ads are purchased automatically; on the one hand, the ads that companies want to distribute and on the other hand, the ideal media for them and in real time the ads impact users. Therefore, we can say that the Ad Exchange is a digital marketplace where the following concepts come into play:
3.3.1 Demand Side Platforms or DSP
These platforms allow advertisers to define all the variables they need to buy audiences. Real-time bidding is done automatically through DPS. Some of the main ones are MediaMath , DoubleClick, Turn, DataXu or IgnitionOne.
The DSP is the way advertisers place their orders cambodia telegram . It all starts with an advertiser, a person or a company that wants to start advertising online, setting up their campaign. This is usually done through a demand-side platform (DSP) . A DSP allows advertisers to set the goals of their campaigns and limit the amount of money they are willing to spend.
To launch a campaign, advertisers must upload images (if they opt for a banner ad) and/or set up a landing page on a DSP. There, they also detail the audience they want to impact. This is where things get interesting. The differentiating factor of RTB over other, more traditional forms of digital advertising is precision. Advertisers can segment their audience using different sociodemographic data.
For example, we can run a slightly strange campaign. We can target our campaign only to people living in Lizarra, using their iOS 11 iPhones before sunrise. With programmatic buying, targeting options allow us to target our future customers. And yes, even if they are all in Lizarra for some reason.
RTB purchasing models
There are several types of pricing models that we can work with in programmatic buying. From CPV (pay per view), through CPM (pay per 1000 impressions), to CPI (cost per installation) and others. To avoid exceeding our budget, with the tool we can set a frequency limit that limits the number of impressions of a particular ad per user. Therefore, we will not "bother" people with the same ad every so often.
The main function of a DSP , however, is the offer . It is like a counter where we can place our order. But before we get to that, let's go to the other side of the counter. To the side of the one who has the offer.
3.3.2 SS P – Supply Side Platform
It is the supply platform. While advertisers are using demand-side platforms (DSP) to place ads, publishers use Supply-Side Platforms (SSP) to sell their inventory. SSP is the counterpart of DSP publishers.
SSPs allow publishers to have full control over their advertising space and maximize revenue by offering their entire inventory to multiple advertisers at the same time. Through SSPs, publishers provide information about their website audience and set the minimum price for each impression.
Every time a user loads the page with ad space for sale, the SSP communicates with the DSP to share information about the next impression. The SSP provides all the socio-demographic data necessary for the DSP to determine whether the impression is useful and to bid on it. We are talking about bidding on a single impression.
These platforms are used by advertising space sellers to sell their inventory . Some of the main SSP platforms are OpenX , DoubleClick for Publishers, Rubicon Project or PubMatic.
4. Why Real Time Bidding is important
Until the arrival of programmatic buying , affiliate agencies told us that we could directly buy the product we liked. A strategy where they told us not to buy a box of cookies if we only liked chocolate ones.
