What is RTB in Digital Marketing

Safalta expert Published by: Ishika Jain Updated Fri, 10 Mar 2023 05:27 PM IST


Real-time digital ad buying and selling is made possible through real-time bidding (RTB) which is a type of programmatic advertising.

Programmatic advertising, which is the real-time, per-impression purchasing and selling of ads, includes real-time bidding as a key component. DSPs and SSPs facilitate an instant marketplace where bidding takes place.

Table of Content:
What is Marketing Does RTB Stand For?
Real-Time Bidding 
Real-time bidding (RTB): How does it operate?
Benefits of Real-Time Bidding 
Problems with Real-Time Bidding
Header bidding versus real-time bidding

What is Marketing Does RTB Stand For?
Real-time bidding (RTB) allows one to purchase and sell ad exchange inventory on a per-impression basis through an instantaneous programmatic auction. For small to medium-sized advertisers, RTB is a much more effective ad buying strategy than direct buying as direct buying involves minimum spending costly requirements. Advertisers can target the ideal customer from a vast array of alternatives with RTB. Despite the complexity of the subject, advertising can start using this strategy with just basic comprehension.

Real-Time Bidding 
Using real-time bidding (RTB), website owners and advertisers can purchase and sell programmatic ad inventory in real-time through online auctions.

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Source: Safalta

RTB is the term utilized for purchasing and selling ad inventory in a real-time auction style and is made feasible by several moving pieces. Some of the keywords are as follows:
  • Publishers: Owners of websites with empty ad slots that need to be filled.
  • Programmatic systems called supply-side platforms (SSP) let publishers sell their ad space to businesses.
  • Advertisers: Marketers who spend money on advertising space to inform and reach prospective customers about goods and services.
  • Demand-Side Platforms (DSP) are real-time ad exchange navigating platforms for programmatic ad buying where advertisers can purchase ad space.
  • Digital marketplace is known as the "Ad Exchange," where marketers and publishers can trade advertising space.
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Real-time bidding (RTB): How does it operate?
It is done by including supply-side platforms (SSPs), demand-side side platforms (DSPs), and ad exchanges.

Supply-side platform
Publishers and advertisers can sell and buy advertising through real-time bidding with the help of a supply-side platform. An SSP is programmatic software utilized by publishers to ease sales of their advertising impressions. Publishers who are also known as suppliers can sell impressions to a larger pool of potential consumers by using SSPs allowing them to connect them with various ad exchanges, demand-side platforms, & ad networks simultaneously. Suppliers can also determine the bidding range to increase their revenue.

Demand side platform
Programmatic software for marketers that offers automated, centralized media buying from several sources is known as a demand side platform. A DSP's motivation comes from the demand side of the advertising equation.  Advertisers look for inventory enabling them to reach the right audiences at the right times and within their set budgets.

Ad exchange
Ad exchanges are online markets where advertisers, agencies, demand-side platforms, publishers, and supply-side platforms can utilize real-time bidding (RTB) to compete for advertising inventory from various publishers. By engaging in the bidding process, advertisers set the price. An ad exchange also gives advertisers visibility into the locations where their advertisements will run.

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Reduced cost
Each impression is targeted which prevents the waste of impressions and budgetary resources on irrelevant and disengaged market segments that can occur when buying advertising space in bulk. It also allows to enforcement of a  frequency cap on the ad inventory and set a cap on the number of times each viewer sees the advertisement. This is a smart way to maximize ad spending and safeguard the reputation of the brand because persistent advertising and other forms of customer communication can turn off potential customers.

Benefits of Real-Time Bidding 

Enhanced Performance
RTB allows advertisers to manage campaigns from a single dashboard interface rather than coordinating with various providers or publications indicating that performance may be monitored in real time, thereby enhancing the agility of advertising.

Improved targeting
Utilizing real-time bidding allows advertisers to target those audiences who are most likely to be interested in their goods or services. Retargeting involves showing advertisements to those who have already shown an interest in the business or product, either through an internet search or a website visit. RTB tend to handle the remaining work by deciphering which websites and at what times the target audience visits them, allowing for the retargeting of adverts accordingly.

Problems with Real-Time Bidding

Mobile targeting
The catchphrase for marketers worldwide is "mobile-first," and the majority of real-time bidding's drawbacks are found on mobile devices. Cookies are used to monitor individual history and target users around the web on desktop computers and other devices connected to a hardwired network. Mobile makes it more difficult to track specific online behaviors or establish a unique user ID, where both of them are essential for effective programmatic ad distribution.

Banner ads on mobile
The future of banner ads on mobile devices worries some advertisers and it tends to arise the question that whether they will continue to have a big impact or not.  Since that RTB mostly deals with display and banner ads, this is a crucial issue to ask. Marketing professionals believe that as mobile advertising develops, it will become more engaging and banner advertisements will disappear, rendering RTB inefficient in meeting their mobile marketing demands.

Real-time bidding enables advertisers to increase relevant impressions and user engagement. Companies having a significant impact on the presence in display advertising find it to be an all-around beneficial and productive weapon in their marketing arsenal.

Header bidding versus real-time bidding
Programmatic header bidding which is often addressed as advanced bidding or pre-bidding involves a method of selling real-time advertising space. This type of bidding can be utilized by the publishers to sell off content to various ad exchanges that compete for the highest price.

Although having similar names, header bidding and RTB have subtle differences that should be taken into account. First, header bidding is a subset of RTB, thus it makes logical that people often mistake the two. Traditionally, each ad exchange would conduct its own auction one at a time. In contrast, header bidding makes use of RTB to let all ad exchanges participate in several auctions at once.

Programmatic ad buying has been upgraded to version 2.0 by header bidding where publishers can offer their inventory to a variety of ad exchanges in the 2.0 edition, providing advertisers access to premium ad space. In general, the improved version has fewer audience and reach restrictions than only the standard RTB version. The biggest winners from this strategy are publishers. According to research, header bidding was employed by 79.2% of the top 1,000 websites utilizing programmatic advertising. Real-time digital ad buying and selling is made possible through real-time bidding (RTB) which is a type of programmatic advertising.

What in marketing does RTB mean?

RTB is a method for buying and selling advertising inventory on a per-impression basis through programmatic rapid bidding, much like financial markets. Real-time bidding allows for the instantaneous display of the advertiser's ad on the publisher's website if the bid is successful.


What does RTB mean in its entirety?

In websites and other online venues like apps and games, real-time bidding (RTB) is an automated auction method for the purchase of individual ad impressions.

What is the RTB project?

A media transaction method called real-time bidding (RTB) enables a single ad impression to be placed up for bid in real time. In a manner akin to how financial markets function, this is accomplished by a programmatic on-the-spot auction.

What are the advantages of RTB?

The RTB can gather vital information on the rental market thanks to the registration of tenancies. It is also crucial to governing and assisting the industry.

What other name would you give RTB?

Real-Time Bidding (RTB) and programmatic have historically been used interchangeably when referring to video advertising.

What varieties of RTB are there?

The real-time bidding (RTB) ecosystem offers a variety of ways to buy inventory. The preferred deal, private marketplace, open auctions, and programmatic guaranteed are the four primary categories of auctions.

What does RTB's future hold?

RTB will become more automated and data-driven as the sector develops. As a result, marketers will be able to make decisions based on real-time data and accurately target their target demographic.

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