Real Time Bidding - Online Media Buying

Real-Time-Bidding for Online Display Advertising

What is RTB?How it works?

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What is Real-time-bidding?

Real-time-bidding (RTB) is the new process of selling and buying online display advertising in real time on one ad impression at a time.

RTB allows ad inventory on a web or mobile site to be purchased by the individual impression through a bidding system that occurs in milliseconds before a web page is loaded to a consumer.

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How it works?

Key players in the RTB landscape:

1. The Publisher - with ad inventories to be auctioned to advertisers

2. The Supply Side Platform – a tool which publishers use to manage ad inventories to optimize revenue yield

3. The Ad Exchange - where ad inventories are floated to be bid by advertisers

4. The Demand Side Platform – a tool advertisers use to automate purchases/bids for ad inventories and to set buying parameters for their campaigns


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How does RTB work?

Publishers with ad inventories (ad

spaces) to be sold to advertisers

RTB platformmanages inventory of ad

spaces and float it toadvertiser for bidding

ADVERTISERS

Advertisers bid forthose spaces viareal-time auction

PUBLISHERS RTB Platform

e.g.$1.50

$1.20

$0.50

$0.80

$1.50 wins

$1.20 wins


How it works? (Scenario)

1. A user clicks on a website (publisher)

2. The website (publisher) sends a bid request to the RTB platform that manages thousands of advertisers

3. Bid request sends message to potential bidders saying “We have a 28-year old, female, based in Singapore, recently searched for flights to New York”

4. RTB platform informs advertisers and ask “How much are willing to bid for this user?”

5. Different advertisers place their bid amount, eg. $0.50, $1.05, $1.50

6. Highest bidder wins, ad is shown to user on website.

This takes place in 300-500 milliseconds, in a blink on an eye.


Benefits of Real-time-bidding

• For Publishers, RTB is designed to maximize the value of each individual impression, thus increasing advertising dollar

• For Advertisers, enhance consumer targeting capabilities and more targeted ad dollar spend, with ability to track and optimize campaign on real-time

• For Mobile advertising, RTB platforms are particularly useful for contextual and geo-local targeted campaigns


The Online Media Buying Landscape

Real-time-buying platform

Diagram courtesy of Adexchange.com


The Online Media Buying Landscape

Diagram courtesy of MarketingLand.com


Companies in the Online Media Landscape



Prepared by Izati Ngaliman

Real Time Bidding - Online Media Buying

Marketing

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