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So, advertisers, or specifically their Demand-Side Platforms, evaluate ad potential in real time and decide whether or not to place a bid and how much to bid.
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Impressions: Impressions refers to the number of times an ad is seen or scrolled past. In the real-time bidding process, advertisers don’t pay for one individual impression, but rather the cost per thousand impressions (CPM).
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Per-impression buying: By bidding on individual impressions instead of a predetermined fixed price, RTB offers a cost-effective method of ad purchasing that prevents overspending.
Before the bidding begins, advertisers set targeting parameters, such as maximum bid price and target audience. These parameters are essential for determining which impressions the DSP will bid on.
Say you run an automotive business that sells parts for sports cars, and you want to use real-time bidding to get your company’s name in front of people looking to buy new parts for their car. You set your targeting options and your budget.
As its name implies, a DSP is driven by the demand side of the advertising equation: Advertisers seek inventory that will help them reach the right audiences at the right time, within a defined budget.
A typical transaction begins with a user visiting a website. This triggers a bid request that can include various pieces of data such as the user's demographic information, browsing history, location, and the page being loaded. The request goes from the publisher to click here an ad exchange, which submits it and the accompanying data to multiple advertisers who automatically submit bids in real time to place their ads.
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These auctions take place in milliseconds, dramatically cutting the time it takes to buy ad space. RTB auctions replace traditional ad buying processes, allowing advertisers to place hundreds or even thousands of ads almost instantly.
Optimizes programmatic campaigns by providing dynamic targeting parameters and access to premium inventory
As part of the ad process, DSPs often provide their advertisers with additional data from third-party providers and enable them to complement this data with data from advertisers own systems.