Real time bidding operates through a popular programmatic advertising model called cost per mille, or CPM. Certain types of programmatic ads are measured by cost per mille (CPM), which means cost per thousand impressions.
You ask for the media kit, choose the ad dimensions that fit your budget, and then buy the ad for a certain amount of time. Once time runs out, the ad is taken down.
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The backbone of the RTB protocol is a taxonomy. It helps DSPs and SSPs to name and interpret pieces of data in the same way. In addition, the protocol contains rules for what data can be shared and how it can be used to make RTB compliant with data protection laws.
Ad Exchanges are autonomous platforms where publishers can sell their ad inventory and advertisers can buy it. Publishers use SSPs to connect to Ad Exchanges and make their ad inventory available on them.
This also gives marketers the agility to pivot quickly if their campaign isn't performing as expected. For instance, you might find that switching out one keyword for another may boost your campaign's performance and align better with the audience you want to reach.
But even for experienced marketers, real-time bidding can be a very confusing concept. So let's break down what RTB is, how it works, and the pros and cons of using it — all while keeping it jargon-free.
Real-time bidding makes the online advertisement process fast and easy. Marketers can skip the back-and-forth previously associated with ad buying and focus on tracking the results, increasing the ROI from your campaigns and empowering your brand to grow better.
Publisher: The publisher is the website or online property that wants to sell ad spaces, often referred to as “ad inventory.”
All the requests and responses are managed automatically by the RTB algorithms running under the hood of SSPs, DSPs, and ad exchanges. Those algorithms send and receive RTB data, complete transactions, and deliver the ads to more info be shown on ad spaces. The ‘common language’ that SSPs, DSPs, and RTB exchanges use to talk to each other is called RTB protocol. It’s a standard communication protocol that defines how bid requests and responses should be written and what data they should contain. RTB Doesn’t Equal Programmatic Advertising
What is an ad server and how does ad serving work? Find out answers to these questions as well as ad server benefits for ad networks.
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Brand safety: Due to the randomized nature of RTB, there is a chance your content could appear next to content that doesn’t align with your brand.
Through programmatic advertising and an exchange, the advertisers can determine which users are the most valuable and then adjust bidding accordingly.