Previously, display advertising was the main effective method of advertising. RTB-technology has become a new milestone in the development of this business on the Internet. The year 2008 became a coup, when the previously "wholesale" purchases of advertising sites began to be replaced by a "retail" system. Each ad space was bought and sold in real time using an auction. RTB - Real Time Bidding - is the name of such a system of buying and selling.
RTB advertising – concept
RTB advertising is a new online advertising technology that works on the principle of real-time ad auctions. The difference is that such advertising is aimed at the target visitor, and not at the purchase of advertising space on the sites. When the user enters the selected resource, the rtb system conducts an instant auction. Each rtb ad impression is redeemed in a fraction of a second. After that, the most advantageous offer of the customer appears before the eyes of the user. As auction sellersplatforms of advertizing networks act. They must have rtb impressions enabled.
User identification
Browsers, social media accounts, mobile platforms, etc. are used to identify the user. A user is called a target if he fully satisfies the requirements of the advertiser. At the same time, personal data about him remains completely confidential. The selection of the target audience (targeting) takes place on the basis of anonymous user profiles provided by DMP. From the point of view of the advertiser, it is rtb-advertising that has increased efficiency. How the auction process looks like will be discussed below.
How RTB works
RTB-advertising is a system that allows the seller and the buyer to communicate more comfortably. The user receives the really necessary advertising, and the seller increases the effectiveness of their advertising. While the user is loading the web page, the RTB system conducts a real-time auction. DSP systems (they represent the interests of advertisers) determine the value of the impression and place a bid. After the end of the auction, an advertiser is selected, and the site visitor will be shown exactly his rtb-advertisement. Yandex, for example, provides its advertising network for this type of product promotion.
Start auction
The auction starts when the user initiates the loading of a web page in their browser. This page contains an ad block. Next, the rtb-exchange sends information to potentialbuyers about advertising space. It also tells you the size, location of the ad unit, and the format of the ad. Next, the identifier of the user whose web page will be loaded is transmitted. DSP buyers verify this information and evaluate the resource. Bidding for this place has begun. Based on the size of bets, the RTB exchange determines the winner. The auction lasts approximately 100 milliseconds. The maximum bid gets a place for the banner, and it appears on the user's page.
Advantages of new technology
RTB advertising is a set of benefits for advertisers, users and sites.
For advertisers
- Targeting is more accurate due to the possibility of using your own criteria. This reduces "idle" impressions.
- The advertiser determines the value of each impression instead of buying in bulk at one cost.
- The technology helps to show the user, based on his interests and characteristics, a unique banner.
- The use of innovation increases the advertising revenue of sites.
- RTB complements traditional advertising. It is possible to set a minimum bid, below which the impression will not be sold. In this case, ads in the traditional form will be shown.
For user
- Less ads.
- Advertising is more relevant to the interests of the user, becoming more interesting and less annoying.
For rtb platforms
- The use of innovation increases the advertising revenue of sites.
- RTB does not completely replace the usual advertising, if the auction is unsuccessful, users see the most common banners. As stated above, an impression is not sold unless it is bid higher than the minimum price.
RTB system
RTB advertising is a system that requires knowledge of terminology to work with. The following concepts are used in the system:
- Demand Side Platfrom (DSP) is the platform that advertisers work with. The platform itself does not have an interface, it appears when using DSP add-ons.
- Sell-Side Platform (SSP) are companies that sell ad space.
- Ad Exchanges and Ad Networks - exchanges or networks for advertising, they provide interaction between sites and advertisers.
- Data Management Platform (DMP or Data Partners) - providers of web profiles of Internet users that are used for targeting accuracy.
- Trading Desk is a DSP add-on that allows you to manage ad buyouts automatically.
- DCOP are creative platforms that help with banner creation.
- Ad Verification & Brand Protection - a system for post-verification of ad units, as well as brand protection.
- Analytics are statistics tools that help track user activity on the web.
