An introduction to real-time bidding (RTB)

2 minutes   |  CAREER ADVICE, MARKETING

– By Chris Hogg, Course Designer, Goldsmiths, University of London Digital Marketing online short course.

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Online Ad Campaigns are complicated.

The price of putting together an online campaign can be 30% more expensive in time and effort than a print campaign if not correctly managed. It’s far easier for an advertiser to find half a million people who are interested in buying a car at this moment on TV than online.

Real Time Bidding is a technology that grew in response to these two problems. There had to be a way of bringing online advertisers and publishers together in a more painless way.

2007 was the pivotal year for real-time bidding, as it was the year Ad Exchanges arrived. These new technologies created huge pools of available inventory. This created the scale that advertisers were asking for.

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With large pools of inventory and buyers able to get hold of it, the time was right for a technology paradigm shift and RTB was the missing piece.

Exchanges began to build real-time bidding Application Program Interface’s (API’s).This meant that a workflow was developing to allow data-driven display advertising strategies.

RTB has taken off for one simple reason: Buyers see real benefits from it:

– Cost per thousand impressions rates are lower than with Traditional ad networks.
– Data allows an increase in click-through rates (CTR’s).
– The reach is bigger than any ad network could ever supply.

 

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2009 -2010 saw a surge in support for RTB from the supply side. It began a wave of growth with DSP’s, Ad networks, Agency Trading Desks all eager to take advantage, and it has grown exponentially since.

Learn the jargon:

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You’ll learn more about this topic in Module 7 of the Goldsmiths, University of London Digital Marketing online short course.

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