Through real time bidding, publishers and advertisers are able to sell and buy ads facilitated by a supply side platform. An SSP is programmatic software for publishers to facilitate sales of their advertising impressions.
So, advertisers, or specifically their Demand-Side Platforms, evaluate ad potential in real time and decide whether or not to place a bid and how much to bid.
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The act of buying and selling ad inventory has made great strides over the last few years and will only make greater leaps as the CTV popularity boom continues.
The important feature of the RTB process is its focus on the users, in contrast to other forms of advertising which can focus on the content and topics of publisher’s webpages.
This targeted advertising brings considerable benefit for the advertisers and is the reason why we often see ads for stores that we may have visited earlier but have not converted at the time, “following” us as we visit other web sites.
Before the bidding begins, advertisers set targeting parameters, such as maximum bid price and target audience. These parameters are essential for determining which impressions the DSP will bid on.
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[3] RTB is promoted as being more effective than static auctions for both advertisers and publishers in terms of advertising inventory sold, though the results vary by execution and local conditions. RTB replaced the traditional model.
At Emodo, we strive to provide smart solutions to empower both advertisers and publishers to maximize their investments, including the Testes A/B use of RTB to uplevel digital advertising from underperforming programmatic technology, providing an experience that is more meaningful to consumers, impactful for brands, and profitable for publishers.
In RTB programmatic, the RTB auction is the core process. It ensures that the highest bidder wins an ad impression on the publisher’s media. It's also called an open auction since any publisher and advertiser can participate in it. The platform that hosts open auctions is called RTB exchange or ad exchange. It communicates with supply-side platforms (SSPs) — software used by publishers, and demand-side platforms (DSPs) — software used by advertisers. From SSPs, ad exchanges collect data about impressions available for sale in the form of bid requests. From DSPs they solicit bid responses showing how much companies are willing to pay for their banner or video to appear on the suggested ad space.
Your DSP determines that the impression fits your parameters, so it places a bid in the exchange. If your offer meets the floor price, you win the auction, and your ad appears to the user. If not, the bid continues to the next buyer on the server.