What is Real-Time Bidding?
Real-Time Bidding (RTB) is an automated auction process that occurs in milliseconds when a user visits a webpage. It allows advertisers to bid on individual ad impressions in real-time.
How RTB Works
- User Visit: A user visits a publisher's website
- Ad Request: The publisher sends an ad request to an ad exchange
- Bid Request: The exchange sends bid requests to multiple DSPs
- Bidding: DSPs evaluate the impression and submit bids
- Auction: The highest bidder wins the auction
- Ad Display: The winning ad is displayed to the user
Benefits of RTB
- Efficient pricing through real-time auctions
- Granular targeting capabilities
- Transparency in the bidding process
- Optimization opportunities
Challenges
Despite its benefits, RTB faces challenges such as ad fraud, privacy concerns, and the need for sophisticated technology infrastructure.