Definition of Real-Time Bidding (RTB)
An automated auction process for buying and selling digital ad impressions in real-time.
Explanation of Real-Time Bidding (RTB)
Real-Time Bidding (RTB) is an automated process where digital ad spaces are bought and sold in real-time through auctions. When a user visits a webpage, an auction takes place within milliseconds, allowing advertisers to bid for the opportunity to show their ad to that specific user. The highest bid wins, and the ad is instantly displayed. This technology allows for more precise targeting and efficient spending, as advertisers can adjust bids based on user behavior and characteristics. RTB relies heavily on data analysis and sophisticated algorithms to determine the value of an impression. It helps advertisers reach their audience more effectively and publishers maximize their revenue. Unlike traditional ad buying, RTB offers a dynamic and flexible approach, making digital advertising more responsive to market changes. The process involves multiple stakeholders, including advertisers, publishers, and ad exchanges, working together to facilitate these real-time transactions. Overall, RTB represents a significant shift in how digital advertising is bought and sold, prioritizing speed, efficiency, and targeted reach.