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Real-Time Bidding. New Down in the Online Marketing

Published on 31 January 16

Real-Time Bidding (RTB) is another fresh trend in online marketing based on the principle of advertising inventory sold and bought by auction in a real-time mode. Simply said, RTB is a kind of advertising exchange market involving three parties: the advertisers determining the size of a budget they are ready to spend on ads display to particular users; the platforms being sold to the advertisers by auction on the real-time basis; and the Internet users. RTB primary goal is to buy right to display the advertising to user perfectly matching the target audience criteria.

Internet User Identification

Being a dynamic process, RTB transaction involves a sequence of actions preceding the advertising display, which are performed within a few seconds, while the website page is being loaded. Typical bid request includes various pieces of data, including user’s search queries, demographic information, browsing history, location, retargeting data and the data on webpage loading. All the data available are put out for bids and the advertiser offering the best price is awarded with right to display its ads to the user. Many of the major companies, such as SmartyAds support OpenRTB protocol. For example, after webpage loading, the winning advertising promoting Apple gadget accessories is displayed to the IPhone owner. Thus, the users receive only highly targeted advertising, while the spenders may optimize the ads.

Real-Time Bidding Advantages

The RTB advertising is beneficial for both the users and spenders, as well as for advertisement platforms. As for the spenders, RTB allows them to save time and resources by displaying the ads to suitable target audience only. Alternatively, SmartyAds RTB platform provides Internet users only with highly targeted potentially interesting advertising. Herewith, the users’ privacy is securely protected, as long as RTB operates only with anonymous virtual profiles based on the data regarding user’s online behavior and the "data tail" from other resources viewed. Such profile may be easily destroyed by clearing the browser cookies. So, let’s discuss RTB benefits for every of these three parties involved in a process in more detail:

RTB Advantages for Advertisers:

· individual determination of every display cost, instead of wholesale purchase at the fixed price;
· highly targeted advertising matching user’s interests and characteristics.

RTB Advantages for Users:

· less intrusive and less annoying advertising;
· only the ads corresponding to user’s potential interests are displayed.

RTB Advantages for Platforms:

· RTB may be used in addition to conventional advertising rather than completely replacing it: in the event of unsuccessful bids the regular banner adds are be displayed;
· opportunity to set a minimum rate, below which the display cannot be sold.

Elementariness of RTB Technology

In order to successfully operate RTB system, the one has to understand some basic definitions, without which RTB utilization becomes impossible. Therefore, here they are:

1. Demand Side Platform (DSP) – auction for advertisers.

2. Sell-Side Platform (SSP) – technical companies selling the platform advertising inventory.

3. Ad Exchanges и Ad Networks (such as SmartyAds) – advertising networks and exchange markets serving as interlink between the advertiser and the platform.

4. Data Management Platform (DMP or Data Partners) – providers of user profiles and user data management systems to increase the targeting accuracy.

5. DCOP — dynamic creative optimization platforms.

6. Ad Verification & Brand Protection – advertising follow-up and brand protection against improperly composed ads.

7. Analytics – instruments for website trafficking monitoring.

Horizons and Prospects
In conclusion, there is the main question being the matter of concern for many users and online marketing specialists: what does the future hold for RTB advertising?

The future prospects of RTB are determined by several factors:

· growing opportunities of mobile advertising market;
· increasing number of advertising premium formats;
· demand for highly transparent media advertising.

Anyway, it only remains to be seen.
This blog is listed under Digital Media & Games and E-Commerce Community

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