What Are the Advantages of Real Time Bidding?

real time bidding

Are you interested in real-time bidding? Well, you’re in the right place to find out about the advantages of it.

In essence, real-time bidding (RTB) is a system of targeted advertising. It allows advertisers and publishers to engage in an auction for the user’s attention so that they can serve ads within milliseconds.


In this blog post, we will go over some of the advantages of using RTB for your marketing campaigns.

Whenever you’re ready to discover the power of bidding on advertisements, get your notes ready and keep reading.

What Is Real-Time Bidding?

RTB (Real-time bidding) is an automated digital auction process where ad impressions are bought and sold in real-time by programmatic means on either a cost per impression or CPM basis.

CPM stands for cost per thousand impressions in the realm of advertising. It is a common metric used by advertisers in online marketing to determine how much they need to pay for their ads to be shown 1000 times.

Thus, real-time bidding refers to the purchase and sale of online ad impressions via real-time market transactions that occur during an allotted time as a website starts to load. The auction is subject to facilitation by exchange or supply-side platform.

Publishers can advertise their inventory in the RTB marketplace. Advertisers bid on these ads using automation tools, such as real-time bidders or programmatic platforms. This means that advertisers don’t need to go through any manual process to place bids for advertisement space.

Which Platforms Support the Process of Real-Time Bidding?

As we have already established, real-time bidding can be subject to execution on three major platforms. These platforms are quite different from each other.

And they are:

Ad Exchanges

Publishers and advertisers alike can use ad exchanges for their purposes. Advertisers can set up campaigns, find the right target audience, and buy ads on publishers’ websites while a publisher may be looking for more traffic or higher-quality visitors from advertising partners to increase revenue.

In addition, there is an interesting way that these two sides come together: auctions!

The individual auction process makes it easy and cost-efficient for both parties with little risk of being exploited by one side over another as they have equal access to each other’s inventory through this medium which means no relationship is really necessary at all between buyer (ad) & seller (publisher).

Supply-Side Platforms

A supply-side platform is a type of platform that website owners can use to put their ad space on the market for sale.

The idea behind the strategy of this type of marketing tactic is for ads to be targeted at customers based on what they’re looking for online, so it’s a perfect way to maximize an advertiser’s ROI while getting your content seen by more people who are interested in purchasing products and/or services you offer.

Demand-Side Platforms

A demand-side platform is a market for advertisers who have a deep desire to purchase ad space and be able to manage their campaigns.

They can set up campaigns, measure the impact of these campaigns on traffic or conversions, optimize bids in real-time based on different factors such as audience location data (geo), dayparting metrics like total daily video views by age group (time), and more.

In short, it’s where you go when your supply has exceeded its demand!

How Does Real-Time Bidding Happen?

The process of real-time bidding will begin with you. You are the audience that an advertiser might attempt to reach.

Inherently, the visitor does not play a role in the ad, but when they allow the use of cookies, they allow ad tools to determine the value of an impression to that user. The tools will do this by adding data to the cookie, which is subject to storage on your device and sharing with advertisers.

The advertiser will then use that information about you to bid for an ad space on a site or mobile app where they think you are likely (or even just occasionally) going to visit at some point during your use of the website.

The bidding is conducted in real-time, which means that an advertiser can change their bid on a given impression at any point if they choose. They will do this as often as necessary to get the maximum amount of impressions (and thus, clicks) for their budget.

In some cases, when it comes to mobile ads, the bidding is done in advance so that the campaign can be targeted to specific locations.

The user’s mobile device is used to determine the location and interests of a person. These are then cross-referenced with information about what type of ads they might show an interest in.

An Example of RTB Advertising

Imagine it’s your dream to own a beauty cosmetic shop.

You love the feeling of helping people feel better about themselves after they visit you. You want nothing more than to get their products in front of as many people who might need them as possible. But advertising can be expensive!

Luckily for entrepreneurs like yourself – RTB is here! When someone searches on Google or Bing with keywords related to what you sell, an ad will pop up linking back to your site.

They’ll see that product before any other brand because it is targeted just for them. Thus, making sure they never have a reason not to come into your store again.

If your ad gets the winning bid, it will instantly appear as they load the website! The user won’t have to scroll through a bunch of text to find what they’re looking for.

They’ll be able to see all ads at once when they first come onto the page. Since this audience is interested in your product, they could become future clients!

The Benefits of RTB

Real-time bidding allows for better targeting of ad campaigns, which provides a more effective outcome.

This is because RTB technology can track and serve up ads to the specific user. This makes it easier for ads to show up in front of people who are most likely interested.

The real-time bidding process also allows marketers the opportunity to bid at any point in time. They only pay when a user clicks on their advertisement.

This means that marketers can be more agile in their advertising campaigns. Thus, attempting to target users with ads who are most likely to convert into customers. It also saves them money because they never have to pay for an ad unless somebody reacts to it!

Consumer Control

Consumers have more control over the ads they see as well, which in turn saves them time and money. They can choose to see the ads that are most relevant to their needs or interests by using a tool like Google Ad Settings for example.

Clarity In Advertising

The advertisers are now able to bid on different keywords and search terms that may fit their needs. This is great for companies that may not know exactly what their target audience wants. But they do have an idea of who they think they’re looking for.

Real-Time Bidding solves these problems by helping advertisers find their target audiences. As well as save themselves a considerable amount in the process!

All parties can customize the settings for their campaigns by using built-in filters. that allow them to adjust prices or start points of various ad spaces on a website.

Real-time bidding has transformed from being just an efficient way to purchase ads into a newer form of advertising altogether.

Targeted Allocation

Next, you can save a big chunk of your advertising budget. You can allocate it to high-converting keywords or search terms. This will bring in the most amount of revenue for your company.

Bid on the words that matter. Bid on specific desirable words which allow advertisers to optimize their budgets. Consequently, generating more exposure.

Cost Efficiency

Save on advertising costs by bidding less per impression. This is the most widely recognized benefit of RTB.

With traditional media, advertisers are paying for impressions regardless if they’re interested in that particular product or not. By using real-time bidding platforms, companies can say goodbye to overpaying for ads and hello to a new approach to marketing.

Guidelines & Institutional Support

With many advertisers bidding for impressions in real-time, they know which websites the ads are competing on. Good demand-side platforms should provide business owners with feedback. Primarily, about how their campaign is doing after the auction has ended.

Furthermore, government agencies and The Interactive Advertising Bureau attempt to prevent fraud. Due to this, there are recommendations released for what RTB companies can do to ensure quality assurance. This is based on guidelines that are set forth before beginning any campaigns or auctions with media sellers as well.

For example, The Guidelines include details such as not running an ad if it does not match the user’s age range or demographics. This is something important when you’re spending a lot of money on advertising!

Audience Narrowing

Thanks to the publishers involved in an ad exchange, advertisers have a higher chance of finding matching audiences. Most exchanges are set up with detailed campaign settings. Thus, business owners can ensure they only pay for relevant placements.

This means real-time advertising allows them to narrow down target markets. As well as create more appealing ads through better copywriting skills. Not to mention, the ability to stop wasted impressions by eliminating extra views from unrelated viewers.

What’s In Store for Real-Time Bidding?

The growing popularity of RTB has led to the rise in advertisers that are using this type of advertising strategy as it is more precise than traditional forms.

Publishers will look for ways to collect data on visitors and present them with ads they may be interested in. Primarily, based on their browsing history or interests. This can lead to a higher conversion rate from visitor-to-customer.

The popularity amongst website publishers who use real-time bidding means there’s no stopping its growth.

The RTB system is a highly automated process that still requires human supervision. In the future, an ad exchange and DSPs will likely be fully robotized while supply needs to remain monitored by humans for now.

The lack of transparency in real-time bidding protocols means that both parties involved are often left feeling lost and confused, as they make their way through unfamiliar territory with no map or help.

By using supply- and demand-side tools, developers can accurately forecast how many clicks a publisher can provide an advertiser with.

This will help advertisers prevent overpaying for impressions while also protecting publishers from underpaying for their inventory of ad space.

As more people create new types of social media content every day, the need for high-quality analytics becomes greater than ever before – especially when considering that to optimize your advertising campaign on any site you have access to (Facebook, Instagram…).

You must be aware where it’s being seen most by audiences so as not waste money paying top dollar just because something is popular without really knowing if anyone sees what they’re trying to advertise there or even worse: posting about things nobody cares about…

RTB for You

The importance of real-time bidding in advertising is becoming more and more apparent.

In fact, if you compare the way that TV ads are sold today to how they were sold 20 years ago, it’s clear just how much things have changed in this industry.

Real-time bidding allows advertisers to bid on ad space for a specific audience at any given moment – meaning that your marketing budget is subject to spread over many different channels or campaigns while reaching exactly the customers who want what you offer them with precision targeting.

If you’re looking for an effective digital marketing service provider, we provide comprehensive services including RTB (real-time bidding) solutions so get in touch about our agency offerings!

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