We are very lucky to live and work nowadays in the world of online advertising as it looks now. At the beginning the procedure was a bit illogical, as Advertisers have nothing to do but buy bulk of traffics that were often not targeted. Spending money for foregone result seems to be really strange, but the were no other alternative.
However, the situation now is absolutely different.
The impressions are bought or rejected after deep consideration of each. All happens so quickly, that while you are just waiting that part of a second of page loading – everything is already done. The mess is automated as much as possible and happens in real time mode. So, guys, welcome to a wonderful world of RTB technology.
You might have heard something about it and the notions connected with it. And now it is the time to put puzzles in order to have exact and clear picture what it is all about.
What is real time bidding?
In traditional, non RTB advertising platforms the logic was to fill each slot of Publisher’s available inventory. The idea sounds good, but it is not always possible as visitors can see more ads, but there is no guarantee that advertisers will be active enough to buy it for the best price.
Yield optimization platforms could solve the problem, but different types of them are required to the best ad platform 2019 and the process, that is not cheap by itself, could become even more expensive. As you understand, even a small growth in price for a shilling can become a pain in the neck for all business participants.
RTB model offer absolutely different treating of the situation by implementing auction model for everybody who wants. All the data about each impression is available for all business participants so that they could decide whether to bid, how much or skip this offering. It was impossible until recent times while now algorithmic methods and data handling has changed a lot.
Probably, you should remember from here that technical progress is not only about improving quality of our leisure, but making our work more comfortable. And, what is even more important for marketers here, effective and direct.
What is DSP about and why we need it here?
The auction principle implies that all lots should come from somewhere and there should be a place where they are considered, as well. First function of DSP (Demand Side Platform) is to help advertisers buy ad resources (the places for displaying) from a wide range of publishers through online ad exchanges. Thus, ads owners have one point of entrance and thousands of opportunities to catch oceans of users on a global level.’
Main function of DSP is to correlate the ad with more suitable websites for the best prices. There are different DSPs available and one may suit to a set of advertisers, while it will be failing to another group. That is why marketers recommend to choose different platforms for each campaign as goals there are likely to be also different.
DSP is a data driven solution. Due to access to data and technologies of its processing, ad buyers can have exact calculation of each impression value before its purchasing, thus, getting rid of unnecessary extra expenses.
One more useful function of the platforms is to buy remnant traffic at rock-bottom price. To tell the truth, both parties are in win-win position here as the inventory that was skipped was sold, probably not at high prices, but it is better than nothing at all.
Conclusion
We have discussed a lot of technical details today. What you should certainly remember, that RTB and DSP do have something in common as they belong to programmatic area. But RTB is a mechanism of the magic, while DSP is a platform designed for Advertisers’ needs to unite data about purchases and access to various RTBs.
