If Silk has the winning bid, the user will see the ad once the page loads. This process happens thousands of times on different webpages during the length of Silk's ad campaign.
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RTB auction is similar to the functioning of financial markets and their exchanges, except that ad impressions are being traded instead of stocks or fixed income securities.
Impressions: Impressions refers to the number of times an ad is seen or scrolled past. In the real-time bidding process, advertisers don’t pay for one individual impression, but rather the cost per thousand impressions (CPM).
With RTB technology, brands can automatically place ads in relevant spaces without much effort. Using their DSPs, they set up their targeting requirements. The DSPs select suitable impressions on open auctions, bid on them, and purchase. Aside from being a huge time saver, RTB makes paid marketing campaigns more productive and cost-effective by letting advertisers to: Minimize the manual labor involved in online advertising and hire a smaller team. Get access to the biggest selection of digital ad spaces and formats on the web.
RTB ecosystem consists of several types of parties that typically participate in the RTB process (see Figure 1):
Increasing ROI: When using a DSP to access ad exchanges, advertisers can adjust their settings to home in on the most relevant inventory for them, cutting down on wasted ad impressions and maximizing conversions.
Publishers are websites visited by users and can range from personal blogs, mobile apps, news sites to social media platforms. Publishers possess advertising inventory, which they want to fill with ads in exchange for revenues from advertisers.
On the publisher side, RTB can help increase revenue by opening inventory to more buyers simultaneously. Publishers can also gain valuable insights into who is buying their inventory, which can help them determine what to charge for premium impressions to maximize revenue.
Advertisers are persons, brands, organizations and other entities that pay to have their ad content placed on the properties of publishers in order to advertise and more info promote their products or services to target audience.
However, brands can limit this issue by putting certain keywords and sites on a “deny” list. This protects brands from showing up on webpages or mobile apps that don't align with their identity.
RTB gives advertisers greater control over their campaigns, allowing them to get the most out of their ad spend. In the past, advertisers would target specific websites. Now, advertisers can fine-tune their targeting to specific users rather than casting a wide net of anyone visiting a web page.
Index Exchange: Supply-side marketplace that allows you to get started with ad inventory selling on multiple channels, including display, video, mobile, and native. Good fit if you’d like to start selling ad inventory or if you plan to take advantage of all of the available channels.
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