RTB Technology in the World of Online Advertising
The set of marketing techniques that are used to promote products or services and increase company sales often include online advertising. Social media promotion, banner advertising, digital promotion, and native ads are all used to help promote and reach a large segment of the audience to increase a brand’s popularity. Some of the most popular types of online advertising are RTB and Programmatic. They often compete in the marketing marketplace and are used as a modernized brand promotion. The two terms are very similar and somewhat related, but they are not the same thing.
RTB: what is it and how does it work?
In simple terms, real time bidding (RTB) is a type of online advertising that conducts an auction to buy or sell advertising in the online space. This technology has absolutely changed the approach to buying an advertising product, which implies at its core not the importance of buying advertising inventory, but the potential user that this advertising is aimed at.
The principle of RTB is much simpler than it seems, because it does not require contracts with the platform where advertising will be placed. All that is necessary is the data, which is usually called cookies. This information is sent to the company that sells advertising and shows it to the visitor of the site in seconds. The one who offers a better price for an online advertisement platform gets the spot, and the most unique one. It happens very quickly. This advertising is beneficial to everyone, both the advertiser and the customer, because both parties get a big monetary benefit, as well as customer-oriented visitors to the site.
To be more precise about real time bidding, this platform has been working for many years and has had an overwhelming success. The price of each seat is formed depending on certain conditions, namely:
- time, the interval during which the bidding takes place;
- geolocation;
- the place on which the advertisement will be displayed.
These factors allow you to analyze the bid in real time. The price range can then be determined. The bidding is done as soon as the user has an advertisement. This is the future of online advertising sales.
The difference between Programmatic and RTBB
The difference is that Programmatic is a technology that automates the process of buying and selling ad inventory. Programmatic is the purchase of ad traffic, through which bids are made. Google Ads is one of the most well-known platforms where online advertising can be purchased. The purchase is not made directly with the owner of the site, but through the platform.
Real Time Bidding is considered a platform for buying and selling advertising in real time with the principle of an auction. The key difference is that RTB is not bidding for advertising space as Programmatic, but for the display and publication of advertising material to a specific audience that is interested in that product or service. It allows RTB clients to acquire only the target audience. What’s most interesting is that RTB is part of the Programmatic platform and often the two models are confused.
To make a distinction so as not to confuse the customer, you can clearly separate the two facts:
- Real-time-bidding (RTB) – bidding is done for advertising through an auction.
- Programmatic – bidding takes place directly with the site for placing advertising.
It is only the business that decides which model to use to promote and purchase advertising, which audience it needs. Accordingly, how much he is ready to spend to promote his brand and product.
The future is in auctions for online advertising
For today’s society, the option of buying advertising by auction is becoming quite popular. Programmatic and RTB in the future will develop and expand its scope to television and radio broadcasting. It will allow to reach the maximum necessary audience and promote your business not to the masses, but to the target clients, who will precisely purchase their goods or services.
Programmatic really covers more of the audience, has excellent pricing, which makes it possible to purchase such Internet advertising for small businesses whose income is still not reaching the top. This model is optimal and convenient, we can even say classic.
RTB allows you to correct the oversaturation of Internet advertising, because it gives publications only to specific people. For advertisers, the process of presenting their services has only become easier. Their sales still go through the media space, but the customer gets a particular ad for a specific user or audience at a reasonable price through an auction.