What Is RTB or Real Time Bidding and Why It Is So Important?

What Is RTB or Real Time Bidding and Why It Is So Important?

To get started, let us define what is RTB or Real-Time Bidding. RTB (Real-time bidding) is a tool, which allows publishers to make online ad auctions. It’s a relatively new technology in the industry of online-advertising, where ad buyers can find the ads they need and offer their price in a real time. Each impression is sold as it becomes available on an advertising exchange platform. RTB


This technology works from 2009. Since then, it has made easier for ad networks to buy only the ad impressions they wanted or needed. Due to RTB or real-time bidding, those who want to buy ads will not have to work with publishers, ad networks directly, or discuss the prices. For using it, of course you will need some instructions. So, first of all the ad impression streams in a user’s Web browser and thus the user is ready for an exchange and decides which is the highest price that he will be able to pay during the auctions. The whole process itself takes some seconds.




By the help of demand-side platform users decide which ad impression to buy and how much to pay for it. The price is determined during the auction based on changing market conditions, that is why it got the name – real-time bidding. Ad Exchange is responsible for holding the auction.

Why RTB is useful?

The bidding process makes sure that each impression will be sold in its maximum price. And after this process is done, they chose the winner and the ad serves on the publisher’s website. Who benefit from Real-time bidding? First, the agencies, it makes more control over the performance of the campaign, besides they get more clients. Advertisers, who no longer will get wasted impressions. And, of course publishers, who get more income from the process, as buyers offer the maximum price.

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