RTB (Real-Time Bidding)

Real-Time Bidding (RTB) is a method of automatically purchasing digital ad impressions through a real-time auction at the moment an advertising opportunity becomes available, for example while a web page is loading.

How it works
Through an automated system, an available ad impression is auctioned in real time. The auction uses data signals such as first-party data, contextual information, audience segments and other targeting criteria. The publisher makes the ad impression available through a supply-side platform (SSP) to an ad exchange, where advertisers can automatically place bids via their demand-side platforms (DSPs).

The entire process takes only a few milliseconds, so users experience no noticeable delay while the web page is loading.

Example
Imagine you visit a website. As the page loads, an ad impression becomes available. Based on available data signals, such as the page content, first-party data or other permitted targeting information, the publisher determines which information is shared with the ad exchange. Advertisers receive this information through their DSPs and automatically decide whether to bid and how much to bid.

In an open auction, the highest eligible bid will generally win, provided it meets the publisher's floor price and the requirements for ad quality and brand safety. Programmatic Guaranteed deals are completed in advance and do not enter the open auction. Preferred Deals are given the first opportunity to purchase the ad impression at a pre-negotiated CPM. Only if that opportunity is not taken will the ad impression become available to a Private Marketplace or the open auction.