Real-time bidding advertising investment will total $823 million in the United States in 2011 , according to Forrester Research, compared to more than $350 million in 2010. This is one of the key trends in online advertising, representing a new evolution in display advertising.
The model, well-established in markets such as the United States and the United Kingdom, is already beginning to make headway in Spain , according to the study "New ecosystem in online media marketing in Spain," recently released by the Interactive Advertising Bureau (IAB). " This new model coexists with the previous one and represents an opportunity for advertisers, publishers, agencies, and other market players to extract greater value from digital media," the report states. Both media and advertisers will have to adapt to this new digital advertising marketing ecosystem.
But what is Real-Time Bidding (RTB)? What advantages does it offer, and how does it differ from traditional CPM or CPC? And who operates under this system in Spain? Here are some answers:
1. What is Real Time Bidding (RTB)?
It is a real-time digital advertising buying and selling model that impacts the target user at the precise moment and at the right time . RTB allows the advertiser to access each impression at the time it will be displayed and evaluate whether or not to purchase it, depending on the website where it will be served and the user who will view it. All this is thanks to the combination of innovative technologies and the integration of information systems.
2. What benefits does it offer?
Real-Time Bidding allows you to segment advertising impression by buy bulk sms service impression , thus reaching your target audience at the precise moment. This allows for even greater optimization of advertising investment.
3. How is the purchase and sale system structured?
A new generation of actors comes into play at RTB, comprising:
Ad Exchanges. These are platforms that connect demand (media buyers) with supply (sellers) . They operate similarly to a stock exchange: they facilitate the system for automatic agreement and closing of sales, but they do not own the inventory, nor do they act on behalf of advertisers, agencies, or media outlets. Most operate on a bidding system , in which the seller sets a minimum starting price for their impressions, and the Ad Exchange platform automatically awards the impression to the highest bidder. In return, it retains a percentage of the media outlets' revenue.