Programmatic direct: This type skips the auction process entirely, allowing publishers to sell directly to specific advertisers at a fixed eCPM.
Real-time bidding (RTB) is the process by which companies buy and place ads online through automated auctions. Real-time bidding takes the work out of advertising by making it possible for advertisers to place hundreds and thousands of ads online, often in less than a second, without needing to individually reach out to online publishers.
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Header bidding is another ad buying method that uses RTB to auction off inventory. It’s sometimes also called pre-bidding or advanced bidding because it improves upon the RTB process.
Multiple advertisers can bid on any impression at any moment. Whoever offers the highest bid wins the auction, and their ad appears on the page.
Saving time: RTB enables advertisers to place hundreds or even thousands of ads within seconds. That’s exponentially faster than traditional ad placement.
1A user triggers an ad request while using an app. Information about the user, available ad format, and other key factors are passed on to advertisers.
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What is the difference between an ad exchange and RTB? An ad exchange is a technology platform more info that hosts open auctions for programmatic media buying. Real-time bidding is the protocol that the platform uses to process bid requests and bid replies from publishers’ SSPs and advertisers' DSPs taking part in the auctions. Is it difficult to build a real-time bidder? To build an RTB programmatic software you need a lot of time, effort, and money. Aside from that, you can’t be sure your team will deliver a solution that meets industry standards and your business needs. Yet you can take a shortcut and buy tried-and-tested white-label software, customize it, and start using it within weeks. How are bidding conflicts avoided in real-time bidding? It’s difficult to avoid competing with yourself if you run ad campaigns using several self-serve DSPs. These platforms might have the same SSPs among their traffic sources. It means each of your DSPs can potentially bid on the same impression sold by one of their common SSP partners. But if you use your own DSP platform connected directly to a chosen list of SSPs, you won’t experience bidding conflicts. How is the final price per impression set in RTB? The final price for an ad impression depends on three parameters: the publishers’ price floor, the highest bids of competing advertisers, and the type of RTB auction.
Ad fraud: Scammers can use bots to trick ad networks into selling false impressions, which reduces the likelihood of your ad being seen. Using an SSP that verifies media buyers, like Emodo Access, can significantly reduce your risk.
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CPM is what you pay for one thousand people to see your ad. Like an auction, the highest bid from relevant ads will typically win the ad placement.