Before, advertisers used to buy an audience on predetermined sites at a fixed rate, but that was before. One of the major innovations in online advertising in recent years is called RTB, or Real Time Bidding.
Real Time Bidding (RTB) refers to the principle by which internet advertising spaces are allocated in real-time based on bids made by advertisers or agencies on the corresponding formats and targeting criteria.
It covers 2 essential notions:
– “Real-time”: the purchase is made in real-time, usually in less than 150 ms
– “Bidding”: the advertising purchase is done through bidding, which has a significant impact on ROI.
In practice, RTB allows advertisers to buy advertising spaces targeting a specific audience. When a sports fan visits a web page whose advertising space is for sale on an Ad Exchange, advertisers are notified and offer a certain price to display a targeted ad on the advertising space seen by the user.
The highest bidder wins the right to display the ad. Depending on their profile and timing, one user does not see the same ads as another. And, all this happens very quickly. The real-time bidding process is executed in less than 150 milliseconds. To know which user to target, everything revolves around data collected primarily through cookies installed on our devices. These allow the creation of user profiles: age, gender, city, interests, browsing history. They come either from the advertisers, one of their partners, or a data provider.
Who are the RTB players?
1. AdExchange Platforms
An AdExchange is a fully automated platform where buyers and sellers of internet advertising connect. It is essentially a marketplace.
An AdExchange particularly automates almost all phases of negotiation, purchase, and campaign setup, without the buyer having any contact with the seller.
2. Ad Networks
An Ad Network is an online advertising campaign management platform that allows for the scheduling of ad displays by format and placement. Using an Ad Network avoids the need to manually update ad placements for each new campaign.
It also simplifies all inventory optimization operations (click optimization for general rotation campaigns, etc.)
3. DSP (Demand Side Platform)
DSPs are software that optimize the purchase of advertising spaces. The main advantage is the creation of a single advertising campaign that the DSP replicates across AdExchange platforms, resulting in better efficiency and significant time savings.
4. SSP (Supply Side Platform)
Unlike DSPs, SSPs optimize the sale of advertising spaces. Using SSPs allows the seller to simplify the availability of their display inventory to AdExchange platforms.
5. Trading Desks
A Trading Desk is an entity that handles the purchase of advertising space on AdExchange and DSPs.
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