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.
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What is the difference between an ad exchange and RTB? An ad exchange is a technology platform that hosts open auctions for programmatic media buying. Real-time bidding is the protocol that the platform uses to process bid requests and bid replies from publishers’ SSPs and advertisers' DSPs taking part in the auctions. Is it difficult to build a real-time bidder? To build an RTB programmatic software you need a lot of time, effort, and money. Aside from that, you can’t be sure your team will deliver a solution that meets industry standards and your business needs. Yet you can take a shortcut and buy tried-and-tested white-label software, customize it, and start using it within weeks. How are bidding conflicts avoided in real-time bidding? It’s difficult to avoid competing with yourself if you run ad campaigns using several self-serve DSPs. These platforms might have the same SSPs among their traffic sources. It means each of your DSPs can potentially bid on the same impression sold by one of their common SSP partners. But if you use your own DSP platform connected directly to a chosen list of SSPs, you won’t experience bidding conflicts. How is the final price per impression set in RTB? The final price for an ad impression depends on three parameters: the publishers’ price floor, the highest bids of competing advertisers, and the type of RTB auction.
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The ad exchange then sends queries to the demand side platforms (DSP), asking for advertisers’ bids. Demand side platform bids on impression based on its perceived value for the advertiser.
Based on the targeting set by advertisers their DSPs bid on the potential impression. The ad exchange receives ad responses and determines the highest bid that wins the auction. The site visitor sees the highest bidder’s advertisement on the ad space that was sold. Real-time bidding is all about communication between separate pieces of software. Without an RTB protocol, this communication wouldn’t be that effective. What’s Inside the RTB Protocol?
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When compared to financial securities ecosystem, Ad Networks play a similar role as brokers do in securities trading.
The price floor defines the minimum amount to pay for an impression. The incoming bids define the maximum amount advertisers are willing to pay. The auction type predetermines whether the winning bidder pays the maximum bid (first-price auction) or the second-largest bid plus $0.1 (second-price auction). Are there any possible bottlenecks in the RTB auction? Your DSP might not bid on impressions even though your campaigns are active. There are a few common reasons for this. You may have set up your SSP Endpoint wrong and it’s bid requests don’t come through. Your targeting may not match the SSP’s traffic type or geo. Your DSP might be too slow to send bid responses before your SSPs close their auctions. Your bid price is too low to win auctions. Or impression beacon doesn’t count impressions correctly. Does Google use RTB? Google uses RTB technology to auction ad inventory provided by publishers and developers using Google Ad Manager, AdMob, and AdSense. Google’s ad exchange supports two implementations of oRTB protocol (JSON and Protobuf) and Authorized Buyers proprietary protocol (often called simply Google protocol). Now that you know what RTB is, it’s time to read more practice! Claim your 14-day free trial to test programmatic campaigns in Epom DSP. Buy RTB Traffic Rate this article
Advertisers Bid via DSP: Interested advertisers, through their DSPs, place real-time bids on the ad impression based on how valuable they believe it is to their advertising goals.
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