Real-Time Bidding (RTB) has now becoming increasingly popular in the world of online marketing. Although this advertising method has been around as early as 2009, it is only until 2013 that this practice has been widely recognized and utilized in online marketing, mainly for its unique, dynamic approach in providing options and convenience for advertisers, and marketers as well.
Real Time Bidding in Summary
To give you an overview, Real Time Bidding is a marketing practice, to which buying and selling of advertising inventory (or ad spots) is being offered on a “per-impression basis” – as opposed to other online marketing form – which is being bought or sold by the bulk. Selling and buying of ad takes place in an auction-based manner through an online advertising exchange system called, Demand-Side Platform.
From there, web publishers submit relevant user data (gender, age, browsing history, location, etc). These relevant information will help potential advertisers to see, analyze, determine the price and ultimately, initiate a bid among web publishers in real-time. Once the bid has been won by a web publisher, the ad will then be displayed on the site almost instantaneously.
Carpe-Ad-Diem: Benefits of RTB
Basically, using Real Time Bidding lessens bargaining time for both advertisers and online marketing firms, as it bypasses unnecessary and long negotiations with online ad salespeople. In addition to this, Advertisers can custom-fit their ads based on their target markets, as well as the freedom to choose and purchase their preferred ad inventories, even a specific web page, from a specific web publisher that compliments their needs.
As for the web publishers, small business owners and long tail sites, potential sales of ad inventory can be stretched, as they can now have the chance to go head-to-head with big sites in offering ad spaces. RTB may help them boost not just their sales, but also their site’s reputation traffic and ranking-wise. This applies especially for websites with niche visitors and cult following. Additionally, web publishers will have the freedom to set certain rules, parameters and standards as well, in accommodating online ads to their site.
Furthermore, Real Time Bidding’s dynamic traits can facilitate negotiations for both in a quicker, cost-effective manner. As for the ad campaigns, online release and publicity will be much quicker to disseminate to potential consumers, as it only takes about a second or so for the ads to pop up on the publisher’s website once the deal has been closed.
The future of Real-Time Bidding
Lots of speculations – good and bad – have been written and discussed about the future of this revolutionary form of online marketing. Although Real Time Bidding has evidently made a lot of buzz over the past year in the online marketing industry, there are still quite a large chunk of advertisers and web publishers that are still reluctant to utilize this practice.
In contrast, some are saying Real Time Bidding will prosper within the next 5 years, given that it will continue to optimize its system and procedures when it comes to catering more advertisers and web publishers. Others even have a forecast of RTB’s potential growth, in terms of functions, media, tools and other peripherals that can be associated with it.