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To dispel the most widespread misconception, we should emphasize that programmatic media buying (or advertising) is a much broader concept than real-time bidding. It’s an umbrella term for three types of automated digital ad space trading: Programmatic direct doesn’t require you to participate in any auctions at all.
This RTB process ensures that ad inventory is sold at the best possible price fairly and transparently, benefiting both publishers and advertisers by efficiently matching supply with demand.
Faster speed: Thanks to the bidding and advertising process taking less than a second to complete, advertisers get instant feedback on what’s working (or isn’t) and can optimize as needed.
Also interacting with Ad Exchanges are Ad Networks which aggregate ad inventory on ad exchanges, segment it according to demographics, context and other criteria and sell it to advertisers for commission.
Ad Exchange then reviews the received bids, removing those that are outside of publishers’ criteria. Next, it selects the auction winner and the corresponding advertising content appears on the publisher webpage.
Performance TV’s real-time reporting leverages the power of Connected TV to show you instantly what’s working (and what isn’t)—allowing you to tweak and optimize your creative for maximum efficiency.
It’s hard to believe that at one point—and not too long ago, either—ad inventory could only be bought or sold when two people picked up a phone to complete the transaction. Today, ad impressions are sold and purchased at an astonishing rate and at faster speeds than the human brain can comprehend.
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Based on the targeting set by advertisers their DSPs bid on the potential impression. The ad exchange receives ad responses and determines the highest bid that wins the auction. The sitio visitor sees the highest bidder’s advertisement on the ad space that was sold. Real-time bidding is all about communication between separate pieces of software. Without an RTB protocol, this communication wouldn’t be that effective. What’s Inside the RTB Protocol?
Through programmatic advertising and an exchange, the advertisers can determine which users are the most valuable and then adjust bidding accordingly.