One can define real time bidding as being a process of automated digital auction which allows the advertisers to bid on an ad space. The one that wins the ad placement is the one which has the highest bid.
Among the advertising methods that is most used is real time bidding. Marketing is modernized by the use of real time bidding as it employs the use of modern technology. Advertising using real time bidding has gained a lot of popularity through the marketing and advertising world. Real time bidding use is competition enough to the usual programmatic advertising methods.
When it comes to good results, both the publishers and the advertisers win. Three parties are associated with the real time bidding. The parties include; demand side, supply side and the exchange.
The publishers are the one who represent the supply side. Duties of the publishers is seen in the way they determine what format to use for the ads and the sizes that they will allow and afterwards will ensure the availability of the ad spaces to bidders that 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 use programmatic advertising and an exchange in order to know the users that are most valuable and bid according to this aspect.
The exchange puts everything together.
Real time bidding helps in improving efficiency of the whole thing. It has benefits for both parties.
Real time bidding works as 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, you can run multiple campaigns in real time, it manages ad campaigns of any magnitude and capabilities in the budget, it enables exposure to many publishers, and it offers affordable prices for the ad impressions.
Publishers can gain from the real time bidding through ways such as , it helps in understanding their audience in a better way, the publishers can utilize private marketplaces, the sales become more better performing, increasing the remnant value for the inventory, pricing is accurate and technology driven, and the publisher has control over the supply side platform.
Advertisers also have a share of benefits that they gain from the real time bidding which are less wasteful media buying, they gain knowledge that is in depth about their consumers, protection of the brand is possible, and campaigns can perform better.