Real-time bidding or RTB is a method for buying and selling digital advertising inventory in real time.
In simple terms, whenever an advertising slot or ‘impression’ becomes available, it is sold in a real-time auction that runs by means of an automated bidding process.
The highest bid wins the impression, and the relevant creative message
is displayed in the slot. The process takes place across media exchanges that connect sellers (publishers) and buyers (advertisers).
How RTB works
1. The opportunity to advertise arises:
When a user clicks through to a page on a publishers webs., mohisite or application, the opportunity to serve an advertisement is created.
2. The request to serve an ad is sent out:
While the page is loading, the publisher sends sends out a bid request.r an ad to be served to demand sources including Demand Side Platforms (BSPW, exchanges and Supply Side Platforms (SSPs).
3. Data pertaining to the impression is included:
The request includes information relatirtg to the impression in question (e.g. the users IP address. browser language or demographic).
4. The value of the impression is calculated:
Based on these attributes, the demand sources calculate the value of the impression to the various advertisers they represent.
5. The bids are evaluated:
Using internal algorithms and preset buying parameters. they decide whether-and how much -to bid.
6. A winner is announced:
The relevant (winning) ad is displayed on the page.