What is Real-time Bidding (RTB) in Programmatic Advertising?
Real-time bidding (RTB) is a form of programmatic advertising that allows advertisers to bid on ad impressions in real time. It enables buyers to purchase digital ads through an automated process, rather than manually negotiating with publishers for each individual impression. RTB works by connecting the advertiser’s demand side platform (DSP) with the publisher’s supply side platform (SSP). When an impression becomes available, the SSP sends out a request for bids from all connected DSPs and then selects the highest bidder to serve their ad.
How Does RTB Work in Programmatic Advertising?
In programmatic advertising, real-time bidding occurs when an advertisement opportunity arises on a publisher’s website or app. The publisher’s supply side platform will send out requests for bids from all connected demand side platforms at once and select the highest bidder to serve their ad. This process happens within milliseconds so that there are no delays between when someone visits a page and when they see an advertisement served up based on their interests or demographics. Advertisers can also set parameters such as budget caps and targeting criteria which helps them control how much they spend per day/week/month as well as who sees their ads.
What are the Benefits of RTB for Growth/Marketing?
Real-time bidding (RTB) in programmatic advertising offers a range of benefits to marketers and growth professionals. Firstly, it allows you to target specific audiences with precision, as ads can be tailored based on user data such as location, interests or device type. This means that your ad spend is more likely to result in conversions.
Secondly, RTB enables advertisers to optimize their campaigns in real time by automatically adjusting bids according to performance metrics such as click-through rates and cost per action. This helps ensure that your budget is being used efficiently.
Finally, RTB also provides access to valuable insights about customer behaviour which can help inform future marketing strategies.
What Types of Ads Can be Delivered Through RTB?
RTB technology makes it possible for a variety of different types of ads including display banners, video, audio, native and even virtual reality. It’s important however that whatever format you choose should be optimized for mobile devices so they don’t appear distorted or difficult to read on smaller screens.
How Do You Set Up a Campaign with Real-Time Bidding?
Setting up an RTB campaign is relatively straightforward. First, you need to decide which platform you want to use for your programmatic advertising campaigns. Popular platforms include Google Ads, The Trade Desk, and AppNexus. Once you have chosen the platform that best suits your needs, create an account and set up the parameters of your campaign such as budget limits and targeting criteria. Then select the type of ad format that will be used in the campaign (e.g., display ads or video ads). Finally upload creative assets such as images or videos into the system so they can be served during real-time bidding auctions when triggered by user data points like demographics or interests.
Are There Any Challenges or Risks Associated With Using Real-Time Bidding for Growth/Marketing Purposes?
Real-time bidding does come with some risks associated with it due to its automated nature; there’s always a chance that something could go wrong in terms of targeting accuracy and delivery speed which could result in wasted spend on irrelevant traffic sources. Additionally, if not managed properly RTB campaigns can lead to high levels of fraud from malicious actors attempting to game the system by serving fake impressions at scale.