A real-time auction where bids are made for each impression. The advertising auctions are conducted in real-time, and they take place while the web page is loading. When an ad is selected as the winner, it is immediately displayed on the page. With real-time bidding, advertisers may promote their products on more websites while simultaneously reaching a wider audience. An ad impression loads in a user’s browser and information about the website in an ad exchange send to the user who is viewing it, which sells it for the greatest price possible to the advertiser who wants it. In just a few milliseconds, the winning bidder’s ad will be displayed on the webpage.
Demand-side platforms allow advertisers to determine which ad impressions to buy and how much to bid on them depending on data, such as the sites they appear on and the previous behavior of the people loading them. Real-time bidding determines the price of impressions based on what buyers are willing to spend. For a long time, advertisers hid their adverts behind third-party websites. If they wanted to target sports lovers, they could, for example, purchase ads on a sports-related website because of real-time bidding (RTB). Even though RTB is a subset of programmatic advertising, it is not used in all cases.
Publishers can sell their inventory in advance for a predetermined price on some "programmatic" or technology-driven ad platforms rather than auctioning it. It is referred to as programmatic guaranteed or programmatic direct. RTB is useful for both advertisers and publishers. For advertisers, RTB promises a more simplified, efficient, and targeted purchasing process. It gives them the flexibility to fine-tune targeting and concentrate on the most relevant merchandise, resulting in a larger return on their investment. As a result, customers will see more relevant ads. RTB enhances income and fills rates for publishers by making material available to a larger range of purchasers in a competitive auction. Finally, publishers can see who is buying what inventory and use that information to charge a premium for premium placements.
RTB has several major publishers on edge because it allows advertisers to pay less for their inventory. However, since exchanges and supply-side platforms enable businesses to regulate the minimum pricing at which their inventory is sold, they are increasingly comfortable with it. Publishers can now put their advertising up for auction, but with a reserve price that must be met before a transaction occurs.