Real Time Bidding - Online Media Buying


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What is Real-time-bidding?
How DSP, SSP and Ad-exchange network works?

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  • red for publishers, blue for advertisers and buyers and purple for companies that sit between them -"aggregators."
  • Real Time Bidding - Online Media Buying

    1. 1. Real-Time-Bidding for Online Display Advertising What is RTB? How it works?
    2. 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. @openapplication 2013
    3. 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 @openapplication 2013
    4. 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 @openapplication 2013 Advertisers bid for those spaces via real-time auction
    5. 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. @openapplication 2013
    6. 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 @openapplication 2013
    7. 7. The Online Media Buying Landscape Real-time-buying platform Diagram courtesy of @openapplication 2013
    8. 8. The Online Media Buying Landscape Diagram courtesy @openapplication 2013
    9. 9. Companies in the Online Media Landscape @openapplication 2013
    10. 10. Prepared by Izati Ngaliman @openapplication 2013