Real Time Bidding platforms are part of the digital advertising ecosystem and live like the middle point between advertisers (agencies, brands) and publishers (websites with space for advertising).
The technology that powers them is constantly being improved upon, as a crucial part of how the internet economy functions. Advertising revenue powers the free content you access on the internet, everything from Facebook to YouTube and news websites. It, therefore, makes sense that the technology that enables this advertising is both lightning fast, highly relevant (most of the time) and a seamless part of the online experience.
In order to understand the various components of the technology, here’s a brief rundown of how the real time bidding auction works.
- A visitor arrives at a website which has available advertising space.
- This visit triggers the website to send a bid request to its corresponding advertising exchange. This request contains any relevant data it has available on the visitor, things like demographics, location, page content and more. This is where to RTB algorithm is reaching out to advertisers in the hopes of getting its ad spaces filled.
- This bid request is then compared with the bids of multiple potential advertisers. If the information about the visitor doesn’t meet the requirements set by these advertisers (e.g. poor match for content, wrong age, etc.), then they don’t send a bid back.
- The advertising space is then filled by the highest bidder, as an impression.
This entire process takes approximately 100 milliseconds, which is less time than it takes to blink! The ad needs to be served and live on the page when a visitor arrives on the website, so the auction process needs to happen much faster than the load time of the page itself, which can be anywhere from 2 seconds to 15+.
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