Previously, the main effective method of advertisingthere was a display advertising. RTB technology has become a new milestone in the development of this business on the Internet. The year 2008 turned out to be a turning point, when earlier "wholesale" purchases of advertising platforms began to be replaced by a "retail" system. Each advertising space began to be bought and sold in real time with the help of the auction. RTB - Real Time Bidding - the name of such a system of purchases and sales.

rtb display advertising

RTB advertising - concept

RTB advertising is a new technologyOnline advertising, which operates on the principle of an auction ad on real-time advertising. The difference is that such advertising is aimed at the target visitor, and not to purchase advertising space on the sites. When the user visits the selected resource, the rtb system conducts an instant auction. Each rtb-advertisement is redeemed in a split second. After that, the customer's most advantageous offer appears before the user's eyes. As sellers at the auction are sites of advertising networks. They should include rtb-displays.

rtb advertising as it looks

User identification

To identify the user,browsers, accounts in social networks, mobile platforms, etc. The user is called targeted if he fully meets the requirements of the advertiser. Personal data about him remain in full confidentiality. Target audience targeting (targeting) occurs based on anonymous user profiles provided by the DMP. Increased efficiency, in terms of the advertiser, is precisely rtb-advertising. How the auction process looks like will be discussed below.

How RTB works

RTB advertising is a system that allowscommunicate to the seller and the buyer more comfortably. The user receives really necessary advertising, and the seller raises the indicator of efficiency of the advertising. While the user downloads the Internet page, the RTB system conducts an auction in real time. DSP systems (they represent the interests of advertisers) determine the value of the show and make a bet. After the end of the auction, the advertiser is selected, and the visitor of the site will be shown exactly his rtb-advertisement. "Yandex", for example, provides its advertising network for this type of product promotion.

rtb advertising this

Beginning of the auction

The auction starts when the userlaunches a web page load into its browser. This page contains an ad unit. Next rtb-exchange sends information to potential buyers about the advertising space. Also, it reports the size, location of the ad unit and the format of the advertisement. Next, the user ID is transmitted, whose Internet page will be downloaded. DSP-buyers check this information and evaluate the resource. Start bidding for the place. Based on the size of the rates, the RTB-exchange determines the winner. Auction lasts about 100 milliseconds. The maximum bet gets a place for the banner, and it appears on the user's page.

rtb advertising Yandex

Advantages of new technology

RTB advertising is a set of advantages for advertisers, users and sites.

For advertisers

  1. Targeting is more accurate due to the possibility of using its own criteria. This reduces "idle" impressions.
  2. The advertiser determines the value of each show instead of a wholesale purchase at a single cost.
  3. Technology helps to show the user, based on his interests and characteristics, a unique banner.
  4. The use of innovation increases the advertising revenue of sites.
  5. RTB complements traditional advertising. There is an opportunity to set a minimum bet, below it the show will not be sold. In this case, advertising will be shown in the traditional form.

For the user

  1. Less advertising.
  2. Advertising more accurately corresponds to the interests of the user, it becomes more interesting and less irritable.

For rtb-sites

  1. The use of innovation increases the advertising revenue of sites.
  2. RTB does not completely displace the usual advertising, inIf the auction is unsuccessful, users see the most common banners. As mentioned above, the show is not sold if it is not offered a price higher than the minimum set.

RTB system

RTB advertising is a system that requires knowledge of terminology. The system uses such concepts:

  1. Demand Side Platfrom (DSP) is the platform with which advertisers work. The platform itself does not have an interface, it appears when using add-ins over DSP.
  2. Sell-Side Platform (SSP) - a company that sells places on the advertising platforms.
  3. Ad Exchanges and Ad Networks - exchanges or networks for advertising, they provide interaction sites and advertisers.
  4. Data Management Platform (DMP or Data Partners) - providers of web profiles of Internet users, which are used for accuracy of targeting.
  5. Trading Desk is a superstructure over DSP, which allows you to manage the redemption of advertisements in automatic mode.
  6. DCOP - these are creative platforms that help in creating a banner.
  7. Ad Verification & Brand Protection is a system of post-verification of ad units, as well as brand protection.
  8. Analytics are statistical tools that help to track user activity on the network.
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