The real-time bidding story is evolving
“The real-time bidding story is turning into a conversation around real-time buying,” says Joanna O’Connell, Principal Analyst at Forrester Research. Emerging concepts such as private marketplaces and direct deals between buyers and sellers are challenging the traditional scope of RTB thinking. Ad exchanges and RTB are now being viewed as more than just a bid-based, real-time marketplace.
Another new trend, O’Connell says, is the rise of big brands like CPG megalith Kellogg getting onto digital advertising platforms and spending big bucks using programmatic mechanisms. O’Connell also points to video advertising going programmatic, saying it’s “a really interesting trend when it comes to brand expenditure.”
Mechanics & essentials of RTB
If you’re looking to understand the mechanics of real-time bidding, look no further than our guest post on Marketing Land written by SiteScout’s Ratko Vidakovic. For newcomers to online ad buying, Vidakovic answers questions about buying traffic through a demand-side platform (DSP) and he discusses how cost and available inventory are interrelated.
As you get into RTB, you’ll discover publishers often sell first and second impressions in bulk through direct deals with advertisers and the impressions that aren’t sold through direct are sold through RTB to the highest bidder, and that’s determined by session depth. In the event of frequency capping, the advertiser that bids most will always have their ad shown first.
Vidakovic says that this has important implications for an advertiser’s bidding strategy.
Real-time bidding for dummies
Real-time bidding (RTB) can be a head-scratching topic in the digital advertising landscape, and many marketers and advertisers are still learning.
If you need help understanding real-time bidding, look no further than B&T’s easy-to-understand post on what real-time bidding is all about. RTB is set to revolutionize the way people advertise online. Because of that, advertisers and performance marketers can’t afford to sweep it under the rug. That said, RTB is also still in its infancy and in perspective it’s only still a mere blip in the life of the Internet. But it’s growing. Really fast.
Ultimately, RTB is an extremely useful tool, allowing advertisers to buy ad space on a person-by-person basis, at scale, while ensuring messages are of the utmost relevance to those who see them. To be able to fully leverage RTB, it’s important to understand how it works, all the perks, the concerns, and what the future holds.
That’s it for this week’s #RTBZeitgeist