Meet RTB or Real Time Bidding, the online media system based on an auction model! – WAU

RTB or Real Time Bidding is a system for buying digital advertising from a real-time auction model. In this article, we will explain how this methodology works and what are the advantages of applying it.

The corporate environment is constantly changing and this directly influences the way we advertise. One of the most attractive methodologies in this area is RTB, which stands for Real Time Bidding.

This different advertising system consists of an online auction of advertising spaces made in real time.

You may have heard of it, but do you know how RTB really works? In this post you will discover:

What is Real Time Bidding?

The RTB is a model that allows advertisers to choose the location, the audience and the ideal time to impact your ad.

In general, we can say that it is a model of acquisition of impressions through a bidding system. The main objective of Real Time Bidding is to provide adequate advertising to potential customers.

Difference between programmatic purchase and RTB

It is very common to find those who think programmatic buying and Real Time Bidding are synonymous, so we will explain the difference between the two terms. Knowing what sets them apart allows you to set goals and execute more precise actions in online marketing strategies.

There are several models of programmatic purchase, these are classified according to the type of stock sold and the way the price is stipulated. The main 4 are:

  • preferred deals;
  • programmatic premium;
  • private marketplace;
  • open exchange.

The latter, also known as an open auction, is what we call Real Time Bidding. Considering this information, we can say that every RTB is a programmatic purchase, but not every programmatic purchase is Real Time Bidding.

How does RTB work?

Now that you know what Real Time Bidding is and the difference between this model and programmatic buying, it’s time to explain how it works.

First, the interested party enters a web page and provides the information requested by the website. Data is collected by Big Data in the form of cookies in milliseconds. Then, a visitor profile is created.

After defining the profile considering the characteristics collected, a message is sent to the Ad Exchange (intermediate platform between supply and demand) for advertisers to check if they are interested in publishing ads on the website visited by the user.

Therefore, when analyzing the request for an offer, the advertisers inform the Demand Side Platform (DSF, platform where the auction and user information are located) if they wish to participate in the auction.

The ad formats offered by this type of programmatic purchase are banners, private ads, floating ads, etc. In this step, advertisers define campaign acquisition parameters and place their bids.

The publisher receives offers made by companies that wish to advertise and verifies which one is the most attractive. After identifying the winner, the ad is displayed on the website and the winner of the bid is notified.

It is worth mentioning the Sell Side Platform (SSP), a platform that collects the maximum amount of information about the media on which it is possible to place advertisements from advertising companies. The SSP allows the media to set a specific price for each print.

As you can see, the RTB process is only possible thanks to the intervention of many actors: users, advertisers, publishers and Ad Exchange, DSP and SSP platforms.

What are the advantages of Real Time Bidding?

Using RTB as one of the main resources to implement Digital Marketing actions is a smart measure, especially when considering the advantages it offers.

Audience segmentation

Targeting is essential to ensure that an ad has an impact on the audience. This allows advertisers to personalize the message, adapting the tone, language and style to the audience.

economy

Saving on advertising costs is a simpler task when we apply RTB in everyday marketing. Advertisers pay only for impressions associated with the audience that interests them.

Highest profit

The inventory is open to a market oriented to maximize the value of each impression. As a result, qualified traffic is attracted and it is practically possible to eradicate wasted impressions.

Better results

The agencies achieve better results for their clients, since they optimize the use of the values ​​destined to carry out advertising actions.

There is also greater control over the performance of each action or campaign. In short, real-time bidding is an attractive methodology for performing online marketing actions.

For RTB to deliver incredible results, it is essential to handle this model correctly. In addition, it is important to always be up to date on the news of advertising.

Now that you know what Real Time Bidding is, do you want to become an advertising expert and improve the performance of your campaigns? Download our free ebook on two major trends in this area: native advertising and Content Marketing!