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Basics Of Rtb For Online Video Ads Networks
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With the exponential growth of brands and businesses the requirement advertisement and marketing has also scaled up high. Advertisement has migrated to Internet domain emerging as a unique industry and sector within it. Thus Digital advertisement emerged as a new trait taking the market by storm. Marketing became easier and faster with the times. This is being aided by developing technology that has enabled to induce methodical changes in the process of digital advertisement, only to improve them. Against this backdrop, Real Time Bidding developed as a breakthrough in the marketing and advertising landscape throughout online video ads networks revolutionizing the market ecosystem.
In current times, ad impressions are transacted through online modes. Buying and Selling of ad impressions can be done online. This means an advertisement inventory in the online domain can be bought and sold on the internet itself. Now, when these transactions are facilitated in real time they are termed as real-time bidding. This is a dealing of ad inventories on the basis of impressions of the ads. Impressions refer to the number of views an ad receives in a defined time. This facilitates automatic transaction making the process fast. In RTB, when an ad buyer bids on an impression and wins it, the advertisement automatically shows on the platform of the buyer. Therefore, if the bid is won, the ad will be displayed on the publisher's site automatically.
When a particular advertisement loads in a web browser of a user, the information that the ad is load is passed to the exchange. In this process, the exchange controls the auction and it would allow the add to run on the site that is willing to pay the highest price for the advertisement. Thus, the highest bidder of the ad will have the ad published on their website instantly. This makes it happen in real time and hence the name. Now, one might ask how advertisers know what ads should be brought and which should be not. This is known by using Demand Side Platforms. Typical advertisers use demand side platforms to determine an find out the ads that have a maximum number of impressions. This takes to account several factors like the number of sites they are appearing and the audience behavior. The price of the ad is determined by such factor. More are the users of the ads in real time, more will be the price of the impressions. This all happens in real time.
One of the advantages of RTB is it allows advertisers to manage an inventory through multiple ad networks. It also allows marketers to create and launch multiple advertisement campaigns to select networks and put them on priority and allocate the intended percentage of inventories to the network. This bidding becomes more effective because it can take into account even a single impression. The system helps advertisers to bid on single impressions at a time and make it possible to pay for it. This means with RTB, advertisers can pay for the exact number of impressions. On the other hand, publishers get the highest payment for a single impression.
In RTB the transaction begins with the user landing on a website or when the website is loaded. This creates a bid that comprises of several data like demographic history, history, location and the particular page sending it to the ad exchange from the publisher's end. The exchange submits the data to advertisers that are available on the platform. The advertisers place a bid on each impression. The highest bidder of the impression will win the bid and the ad will be displayed automatically on their platform.
RTB has been the major reason for the growth of online advertisement in recent times. It is estimated that by 2020 revenue from RTB will reach more than USD 26 Billion. This will bring better prospects for digital advertisers and marketers. It will make marketers more efficient and the process of advertisement seamless and instantaneous. This would allow marketers to cut down massive cost that is wasted on impressions from irrelevant users. Moreover, manual observation of ads and their impression would not be required as it would be all programmed in the platform. Real Time Bidding has also discarded the prospects of ad frauds and impressions from bots. Thus, it has increased the prospects of actual impressions of ads.
The author is associated with Media Conversion, a
video ad network.
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