Real-time bidding

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Real-time bidding RTB is a tool where ad inventory is purchased and sold on a per-impression basis, via programmatic instant auction, similar to financial markets. With real-time bidding, an ad buyer bids on an impression and, if the bid is won, the buyer's ad is instantly displayed on the publisher's site. Real-time bidding enables advertisers to manage and optimize ads from multiple ad networks by granting users access to many different networks, enabling them to create and launch ad campaigns, prioritize networks, and allocate percentages of unsold inventory, known as backfill.

Real-time bidding can be distinguished from static auctions in that way is how per-impression bidding and static auctions are a group of up to several thousand impressions. RTB is promoted as being more effective than static auctions for advertisers and publishers in terms of advertising inventory sold, although results vary by execution and local conditions. RTB replaces the traditional inventory sales model and allows publishers and advertisers to place the right ads for the right users, based on real-time data.

Video Real-time bidding

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Typical deals begin with users who visit websites. This triggers a bid request that can include different pieces of data such as user demographic information, search history, location and loaded pages. The request originates from publisher to exchange ads, which sends them and accompanying data to multiple advertisers who automatically submit bids in real time to place their ads. Advertisers bid on each ad impression when it goes live. The impression of entry to the highest bidder and their ads are displayed on the page. This process is repeated for each ad slot on the page. Real-time bidding deals typically occur within 100 milliseconds (including receiving bid requests and serving ads) from the moment the ad exchange receives the request.

Offers happen autonomously and advertisers set maximum bids and budgets for ad campaigns. Criteria for bidding on certain types of consumers can be very complicated, taking into account everything from very detailed behavior profiles to conversion data. A probabilistic model can be used to determine the probability for a given click or conversion provided by user history data (the user's trip alias). This probability can be used to determine the bid size for each ad slot.

Request-side platforms

Request-side platforms (DSPs) give buyers RTB direct access to different sources of inventory. They typically streamline ad operations with applications that simplify workflow and reporting. DSP is directed at advertisers. Technology that empowers ad exchange can also provide a foundation for DSP, enabling synergies between ad campaigns.

The main difference between ad networks and DSPs is that DSPs have the technology to determine the value of individual impressions in real time (less than 100 milliseconds) based on what is known about user history.

Bidging platforms

Large publishers often manage multiple ad networks and use bid-side platforms (SSP) to manage ad results. The supply-side platform uses data generated from the impression-level offerings to help tailor ad campaigns. Apps for managing ad operations are also often incorporated into the SSP. CNS technology is adapted from ad exchange technology.

Challenge with mobile implementation

Individual browser history is more difficult to determine on mobile devices. This is because the technical limitations that continue to make the types of targeting and tracking available on desktop are basically impossible on smartphones and tablets. The lack of universal cookie alternatives for mobile web search also limits the growth and viability of programmatic ad purchases. Real-time mobile offers also do not have universal standards.