Dive summary:
- Real time bidding (RTB) is a process by which "order taking" for media buys is automated, and requires no human interaction. This still leaves a role for sales to build relationships and create effective campaigns.
- Publishers may have concerns about drops in CPM due to RTB, but most inventory available today is remnant, and savings in cost-of-sale help alleviate that concern.
- Ad exchanges enable RTB and creates liquidity in the market by managing supply and demand. Examples of RTB ad exchanges are Right Media and Doubleclick exchange.
- From the moment someone visits a webpage, the RTB process is played out in milliseconds and serves the ad that best monetizes that user. For all intents and purposes, the bidding and serving process happens in real-time.
From the article:
The real-time bidding ecosystem is still fairly new, and for many in our industry, there are a lot of misconceptions about how all the different parts of the ecosystem fit together. I've had a lot of requests from folks in the industry to explain how RTB works, and how the different players in our space fit together.
The biggest concept to get your head around with real-time bidding is the concept of programmatic buying and selling. The idea here is to streamline the buying and selling...
