What is Real-Time Bidding (RTB)?

Real-Time Bidding (RTB)


Real-Time-Bidding (RTB) is an online advertising buying process where ad impressions are bought and sold on a per-impression basis, through real-time auctions that occur in the milliseconds it takes for a webpage to load.

Real-Time-Bidding revolutionizes the way advertisers reach their audience by allowing them to bid for ad space in real-time, providing the opportunity to display their ads to the right person, at the right time, and in the right context. This process begins when a user visits a website that has ad spaces available for RTB. The website sends out a bid request that includes various pieces of information about the user and the context of the site. Advertisers then evaluate this information and decide how much they’re willing to pay to show an ad to that specific user, based on how well they match their target audience criteria. The highest bidder wins the ad space, and their ad is immediately displayed on the website.

This method is highly efficient compared to traditional advertising methods because it allows for precise targeting and optimization of ads based on real-time data. Advertisers can adjust their campaigns on-the-fly based on performance metrics or changes in strategy. For example, if an advertiser notices that ads displayed on a particular type of website are performing exceptionally well, they can increase their bids for similar sites to maximize ROI. Conversely, if certain ads aren’t performing as expected, advertisers can quickly adjust or halt those campaigns to minimize losses.

Actionable Tips:

  • Define your target audience precisely: Utilize data analytics to understand who your ideal customer is and target your bids accordingly.
  • Monitor and adjust bids in real-time: Keep an eye on campaign performance and be ready to adjust your bidding strategy based on what’s working.
  • Test different ad creatives: Use RTB’s flexibility to test various ad formats and messages to see what resonates best with your audience.
  • Set clear KPIs: Know what success looks like by setting clear key performance indicators (KPIs) for your RTB campaigns.