The process of digital auction that is automated which allows the advertisers to bid on an ad space is the definition of real time bidding. The highest bid wins the placement for the ads.
It is a leading online advertising method. Real time bidding operations that involves new, current and modern technology enables for the modernization of strategies involved in marketing. Advertising using real time bidding has gained a lot of popularity through the marketing and advertising world. Traditional programmatic advertising is threatened by the introduction of real time bidding to the advertising world.
Real time bidding helps both the publishers and the advertisers benefit. Real time bidding involves three parties. Parties associated with the real time bidding are inclusive of demand side, supply side and the exchange.
The supply side is covered by the publishers. The work of the publishers is seen in determination of sizes and formats for the ads and making them available such that bidders can get them who want their ads placed.
The demand party is represented by the advertisers. Audience targeting is the responsibility of the advertisers and use advertising as the main platform. They can bid accordingly by using programmatic advertising and an exchange that provides valuable information to them concerning the best users.
The whole transaction is made possible by the exchange.
Real time bidding helps in improving efficiency of the whole thing. Real time bidding has its benefits for both parties.
The benefits that are associated with real time bidding are; it manages ad campaigns of any magnitude and capabilities in the budget, it enables exposure to many publishers, it offers affordable prices for the ad impressions, audience buying is possible, the audience can be reached at the appropriate timing and with the right context, ad impressions that have been wasted can be eliminated, it enables impression by impression buying, it creates a bid optimization algorithm, data can be obtained in real time concerning the auction, and you can run multiple campaigns in real time.
Advantages the publisher can enjoy from the real time bidding are the publisher has control over the supply side platform, it helps in understanding their audience in a better way, increasing the remnant value for the inventory, pricing is accurate and technology driven, the publishers can utilize private marketplaces, and the sales become more better performing.
The benefits that real time bidding has for the advertisers includes; gain knowledge that is in depth about their consumers, protection of the brand is possible, campaigns can perform better, and less wasteful media buying.