Real-Time Bidding
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Real-time bidding (RTB) is a programmatic advertising method in which digital ad impressions are bought and sold through automated auctions that occur in real time. Usually in the milliseconds it takes for a webpage or app to load. Each impression is auctioned individually, allowing advertisers to serve highly targeted ads to specific users at scale.
How It Works
- A user visits a website or app with available ad space.
- The publisher’s Supply-Side Platform (SSP) sends a bid request to multiple Demand-Side Platforms (DSPs).
- The DSP evaluates the bid request based on user data and decides how much to bid.
- The highest bidder wins the auction, within milliseconds, and their ad is served to the user.
- The process repeats for every single impression, in real time.
Key Benefits of RTB
- Precise Audience Targeting – Reach users based on behavior, demographics, and location.
- Cost Efficiency – Only pay for the impressions that match your ideal audience.
- Scalability – Access a wide range of inventory across multiple websites and apps instantly.
- Real-Time Optimization – Adjust bids, creatives, and targeting on the fly based on performance data.
- Improved ROI – Granular control over ad spend and targeting increases overall campaign efficiency.
Use Cases
- Retargeting Visitors: Re-engage users who visited your site but didn’t convert.
- Launching Product Campaigns: Reach niche audiences at scale with minimal wastage.
- Geotargeted Ads: Deliver local offers based on a user’s live location.
- Performance Marketing: Drive measurable results like app installs, sign-ups, or purchases.
- Brand Awareness at Scale: Build visibility by bidding strategically across high-traffic properties.
Real-Time Bidding is a cornerstone of modern digital advertising, giving growth marketers the speed, precision, and control needed to connect with the right audience at the right moment.