Before, advertisers bought an audience on predetermined sites at a fixed rate, but that was before. One of the big news in online advertising in recent years is called RTB for Real Time Bidding.
Real Time Bidding (RTB) refers to the principle by which internet advertising space is allocated in real time based on bids made by advertisers or agencies on the corresponding formats and targeting criteria.
It covers 2 essential concepts:
– “Real-time”: the purchase is made in real time, generally in less than 150 ms
– “Bidding”: advertising is purchased at auction, which has a significant impact on ROI.
Concretely, RTB allows advertisers to buy advertising space by targeting a specific audience. When an Internet user who is a sports fan visits a web page whose advertising space is for sale on an Ad Exchange, advertisers are notified and offer a certain price to display targeted advertising on the advertising space seen by the Internet user.
Whoever offers the highest prize wins the right to display the advertisement. Depending on their profile and at different times, an Internet user does not see the same advertisements as another Internet user. And, all this happens very quickly. The real time bidding process takes less than 150 milliseconds. To know which Internet user to target, everything revolves around the data collected mainly via cookies installed on our machines. They allow us to build Internet user profiles: age, gender, city, interests, browsing history. They come either from advertisers, one of their partners, or a data provider.
Who are the actors of RTB?
1. AdExchangeplatforms
An AdExchange is a completely automated platform to which buyers and sellers of internet advertising connect. It is nothing more and nothing less than a marketplace.
In particular, an AdExchange makes it possible to automate almost all phases of negotiations, purchasing and campaign implementation, without the buyer having any contact with the seller.
2. Ad Networks
An Ad Network is an online advertising campaign management platform that allows you to program advertising displays by format and location. Using an Ad Network avoids having to manually update ad placements with each new campaign.
It also makes it possible to simplify all inventory optimization operations (per-click optimization for general rotation campaigns, etc.)
3. DSP (Demand Side Platform)
DSPs are software that makes it possible to optimize the purchase of advertising space. The main interest lies in the creation of a single advertising campaign that the DSP will be responsible for replicating on the AdExchange platforms, which allows for greater efficiency and considerable time savings.
4. SSP (Supply Side Platform)
Unlike DSPs, SSPs make it possible to optimize the sale of advertising space. The use of SSP allows the seller to simplify the provision of its display inventory to AdExchange platforms.
5. Trading desks
A Trading Desk is an entity that offers to take care of the purchase of advertising space on AdExchanges and DSPs.
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