Real-Time Bidding Represents the Future of Buying Online Display Advertising by Nicole Valentin
RTB (Real-time Bidding) is a relatively new method of selling and buying online display advertising in real time one ad impression at a time. Think the stock exchange, but for display and mobile web banners! RTB uses algorithms to automatically buy and sell ads in real-time and targets cookies based on demographic and behavioral data thus making each ad impression unique.
An example of how RTB works is say a user heads to a page on a website, while the page loads, in the same instant the website sends out a bid request to potential advertisers saying “we have a 35 year old Caucasian Women that lives in Tampa and recently search for shoes”. Within milliseconds, the website receives bids and selects the highest bidder. That advertiser’s ad is then displayed on the page the user is loading. It all happens within approximately 400 milliseconds causing the user no delay in loading their page. Because advertisers are purchasing one ad impression at a time based on the exact cookie they are trying to target, there is a dramatic increase in the effectiveness of their display advertising.
RTB has really taken off in the last year as media buyers and clients see real benefits from it. There is a very little waste when you are buying one impression at a time and targeting the exact consumer you want to target. They are also seeing a 19% CPM savings and a .06% increase in CTR performance using RTB over traditional display advertising buys. Give us a call to find out how we can help you achieve better ROI on your display advertising campaigns.