Real-Time Bidding Advertising

What does it mean

More info

Principle of RTB Operation

RTB auctions resemble the functioning of financial markets. Publishers offer their media inventory (advertising spaces on websites, in applications, on television and radio) and advertisers bid to purchase it through an auction. The winner of the auction is the advertiser with the highest bid, who thus obtains the right to display the advertisement to the user.

Advantages of RTB

RTB offers several advantages over traditional advertising buying methods:

• Efficiency: The entire process is automated and takes only a few milliseconds, eliminating the time-consuming manual trading.

• Accuracy: RTB allows advertisers to target ads to relevant users with a high degree of accuracy, increasing the return on investment (ROI).

• Transparency: Advertisers have real-time insight into advertising prices and where their ads are displayed.

• Flexibility: RTB allows advertisers to flexibly adjust their campaigns based on the results achieved.

RTB Auction Mechanism

When a user opens a web page, the RTB auction process is initiated:

• Data Collection: The website collects information about the user, such as their location, device type, operating system, and browser.

• Request for Proposal (RFP): The publisher sends an RFP to the RTB platform, which contains information about the advertising inventory and user data.

• Auction: The RTB platform initiates an auction among advertisers, who bid to display their advertisement to the user.

• Winner Selection: The winner of the auction is the advertiser with the highest bid.

• Ad Display: The winning advertiser's advertisement is displayed on the website.

Costs of RTB Campaigns

The price of RTB campaigns depends on several factors, such as:

• Type of Advertising Inventory: The price of advertising spaces varies depending on their placement, media type, and target audience.

• Competition: The price of advertising increases depending on the number of advertisers bidding for the same advertising inventory.

• Campaign Settings: Advertisers set their own maximum bid price and maximum budget for the campaign.

Pricing Models for RTB Campaigns

Different pricing models are used for RTB campaigns:

• CPM (cost per 1000 impressions): The advertiser pays for 1000 views of their advertisement.

• CPC (cost per click): The advertiser pays for each click on their advertisement.

• CPL (cost per lead): The advertiser pays for each lead acquired.

• CPA (cost per action): The advertiser pays for each desired action, such as a purchase or registration.

RTB is a dynamic and rapidly developing area of marketing. Thanks to its benefits such as efficiency, accuracy, and transparency, it is becoming the preferred method of advertising purchase for an increasing number of advertisers.

Evaluation of RTB Campaign

Thorough tracking and analysis of individual campaigns and formats is key to their optimization and achieving maximum return on investment.
Comparison of data: When comparing the number of clicks reported by media and data found in Google Analytics of the client's website, discrepancies often occur. These differences can have various causes, such as:

• Discrepancies in measurement methodology: Media and Google Analytics use different metrics and measurement methods, which can lead to different results.

• Technical issues: Technical issues with the measurement code or the client's website can distort the results.

• Script blocking: Users install various plugins and tools to block ads and tracking scripts, which can affect measurement results.

To eliminate these differences and accurately measure campaign results, the implementation of an additional independent measurement code is recommended. In Slovakia, Gemius tracker is among the most used solutions.

Thorough labeling: The mere implementation of the measurement code is not enough. For effective campaign evaluation, thorough labeling of individual campaigns and advertising formats is essential. This allows for detailed tracking of campaign results and identification of the most effective ones.