SlideShare a Scribd company logo
1 of 10
Download to read offline
Real-Time-Bidding for
Online Display Advertising
What is RTB?
How it works?

www.OpenApplication.wordpress.com
What is Real-time-bidding?
Real-time-bidding (RTB) is the new process
of selling and buying online display
advertising in real time on one ad
impression at a time.
RTB allows ad inventory on a web or mobile
site to be purchased by the individual
impression through a bidding system that
occurs in milliseconds before a web page
is loaded to a consumer.
www.OpenApplication.wordpress.com

@openapplication 2013
How it works?
Key players in the RTB landscape:
1. The Publisher - with ad inventories to be auctioned to advertisers
1. The Supply Side Platform – a tool which publishers use to
manage ad inventories to optimize revenue yield

1. The Ad Exchange - where ad inventories are floated to be bid
by advertisers

1. The Demand Side Platform – a tool advertisers use to
automate purchases/bids for ad inventories and to set buying
parameters for their campaigns

www.OpenApplication.wordpress.com

@openapplication 2013
How does RTB work?
PUBLISHERS

RTB Platform

ad

$1.50
wins

$1.50

ADVERTISERS

e.g.

$0.80
$0.50
$1.20
wins

ad

Publishers with ad inventories
(ad spaces) to be sold to
advertisers

$1.20

RTB platform
manages inventory of ad
spaces and float it to
advertiser for bidding

www.OpenApplication.wordpress.com

@openapplication 2013

Advertisers bid for
those spaces via
real-time auction
How it works? (Scenario)
1. A user clicks on a website (publisher)
2. The website (publisher) sends a bid request to the
RTB platform that manages thousands of
advertisers
3. Bid request sends message to potential bidders saying “We have a
28-year old, female, based in Singapore, recently searched for flights to
New York”
4. RTB platform informs advertisers and ask “How
much are willing to bid for this user?”
5. Different advertisers place their bid amount, eg. $0.50, $1.05, $1.50
6. Highest bidder wins, ad is shown to user on website.
This takes place in 300-500 milliseconds, in a blink on an eye.
www.OpenApplication.wordpress.com

@openapplication 2013
Benefits of Real-time-bidding
• For Publishers, RTB is designed to maximize the
value of each individual impression, thus
increasing advertising dollar
• For Advertisers, enhance consumer targeting
capabilities and more targeted ad dollar
spend, with ability to track and optimize campaign
on real-time

• For Mobile advertising, RTB platforms are
particularly useful for contextual and geolocaltargeted campaigns
www.OpenApplication.wordpress.com

@openapplication 2013
The Online Media Buying
Landscape
Real-time-buying platform

Diagram courtesy of Adexchange.com
www.OpenApplication.wordpress.com

@openapplication 2013
The Online Media Buying
Landscape

Diagram courtesy ofMarketingLand.com
www.OpenApplication.wordpress.com

@openapplication 2013
Companies in the Online Media Landscape

www.OpenApplication.wordpress.com

@openapplication 2013
Prepared by Izati Ngaliman
www.OpenApplication.wordpress.com

@openapplication 2013

More Related Content

Recently uploaded

SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedMumbai Pixels
 
Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Joseph Skibbie
 
Fashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfFashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfUttara University
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfVWO
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneHerd
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxGregory Edwards
 
The best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdfThe best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdfShifali roy
 
Crafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesCrafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesVWO
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxWill Haire
 
Run more experiments with fewer resources
Run more experiments with fewer resourcesRun more experiments with fewer resources
Run more experiments with fewer resourcesVWO
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Studystuwilson.co.uk
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldD Cloud Solutions
 
SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfvikrs213
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxivanrazine1
 
2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain VisibilitySearch Engine Journal
 
Dhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing InternDhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing Internrisabhpandeyconnect
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing courstegveersingh09
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarSEO Optimizers
 
Voltas turnaround strategy management case
Voltas turnaround strategy management caseVoltas turnaround strategy management case
Voltas turnaround strategy management caseAnkit Sarkar
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMNazal Digital
 

Recently uploaded (20)

SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to Succeed
 
Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!
 
Fashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfFashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdf
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdf
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not Alone
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
 
The best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdfThe best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdf
 
Crafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesCrafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing Pages
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptx
 
Run more experiments with fewer resources
Run more experiments with fewer resourcesRun more experiments with fewer resources
Run more experiments with fewer resources
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Study
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern World
 
SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdf
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
 
2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility
 
Dhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing InternDhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing Intern
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing cours
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads Webinar
 
Voltas turnaround strategy management case
Voltas turnaround strategy management caseVoltas turnaround strategy management case
Voltas turnaround strategy management case
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEM
 

Featured

AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfAI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfmarketingartwork
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024Neil Kimberley
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)contently
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024Albert Qian
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsKurio // The Social Media Age(ncy)
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Search Engine Journal
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summarySpeakerHub
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next Tessa Mero
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentLily Ray
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best PracticesVit Horky
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project managementMindGenius
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...RachelPearson36
 
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Applitools
 
12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at WorkGetSmarter
 

Featured (20)

AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfAI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
 
Skeleton Culture Code
Skeleton Culture CodeSkeleton Culture Code
Skeleton Culture Code
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
 
How to have difficult conversations
How to have difficult conversations How to have difficult conversations
How to have difficult conversations
 
Introduction to Data Science
Introduction to Data ScienceIntroduction to Data Science
Introduction to Data Science
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best Practices
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project management
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
 
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
 
12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work
 
ChatGPT webinar slides
ChatGPT webinar slidesChatGPT webinar slides
ChatGPT webinar slides
 
More than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike RoutesMore than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike Routes
 

Real Time Bidding - Online Media Buying

  • 1. Real-Time-Bidding for Online Display Advertising What is RTB? How it works? www.OpenApplication.wordpress.com
  • 2. What is Real-time-bidding? Real-time-bidding (RTB) is the new process of selling and buying online display advertising in real time on one ad impression at a time. RTB allows ad inventory on a web or mobile site to be purchased by the individual impression through a bidding system that occurs in milliseconds before a web page is loaded to a consumer. www.OpenApplication.wordpress.com @openapplication 2013
  • 3. How it works? Key players in the RTB landscape: 1. The Publisher - with ad inventories to be auctioned to advertisers 1. The Supply Side Platform – a tool which publishers use to manage ad inventories to optimize revenue yield 1. The Ad Exchange - where ad inventories are floated to be bid by advertisers 1. The Demand Side Platform – a tool advertisers use to automate purchases/bids for ad inventories and to set buying parameters for their campaigns www.OpenApplication.wordpress.com @openapplication 2013
  • 4. How does RTB work? PUBLISHERS RTB Platform ad $1.50 wins $1.50 ADVERTISERS e.g. $0.80 $0.50 $1.20 wins ad Publishers with ad inventories (ad spaces) to be sold to advertisers $1.20 RTB platform manages inventory of ad spaces and float it to advertiser for bidding www.OpenApplication.wordpress.com @openapplication 2013 Advertisers bid for those spaces via real-time auction
  • 5. How it works? (Scenario) 1. A user clicks on a website (publisher) 2. The website (publisher) sends a bid request to the RTB platform that manages thousands of advertisers 3. Bid request sends message to potential bidders saying “We have a 28-year old, female, based in Singapore, recently searched for flights to New York” 4. RTB platform informs advertisers and ask “How much are willing to bid for this user?” 5. Different advertisers place their bid amount, eg. $0.50, $1.05, $1.50 6. Highest bidder wins, ad is shown to user on website. This takes place in 300-500 milliseconds, in a blink on an eye. www.OpenApplication.wordpress.com @openapplication 2013
  • 6. Benefits of Real-time-bidding • For Publishers, RTB is designed to maximize the value of each individual impression, thus increasing advertising dollar • For Advertisers, enhance consumer targeting capabilities and more targeted ad dollar spend, with ability to track and optimize campaign on real-time • For Mobile advertising, RTB platforms are particularly useful for contextual and geolocaltargeted campaigns www.OpenApplication.wordpress.com @openapplication 2013
  • 7. The Online Media Buying Landscape Real-time-buying platform Diagram courtesy of Adexchange.com www.OpenApplication.wordpress.com @openapplication 2013
  • 8. The Online Media Buying Landscape Diagram courtesy ofMarketingLand.com www.OpenApplication.wordpress.com @openapplication 2013
  • 9. Companies in the Online Media Landscape www.OpenApplication.wordpress.com @openapplication 2013
  • 10. Prepared by Izati Ngaliman www.OpenApplication.wordpress.com @openapplication 2013

Editor's Notes

  1. red for publishers, blue for advertisers and buyers and purple for companies that sit between them -"aggregators."