RTB is much more than just ads.
Real Time Bidding goes beyond simply being a way of buying ad space at a lower cost.
This type of programmatic purchase offers many advantages that have helped it to become a form of advertising in continuous growth. According to a report made by Research and Markets, RTB market is expected to have a compound annual growth rate of 30% between 2020 and 2025.
Before diving into the aspects that make RTB a strategy so interesting for any business, let's take a look at its definition:
RTB is the process of buying ad space in real time through a bidding system.
The fundamental elements in this process are:
- Publishers: these are the online media that offer their ad space.
- Advertisers: these are the brands that want to show their ads on different media.
- DSP (demand side platform): these are the platforms where advertisers create the demand of ad space. RTBMind is a DSP.
- SSP (supply side platform): these are the platforms where publishers manage their ad space inventory.
- Ad Exchange: the techonology that connects supply and demand; this is, the place where ad space is traded.
Now that we've reviewed these concepts, let's see which characteristics make RTB a must in all digital marketing plans.
RTB is based on data (from the DSP as well as from 1st and 2nd party data). Therefore, advertisers have more information about users, allowing them to customize the messages used in their campaigns.
For example, they are able to know if a user is already a client; they can also know their interests, their location, etc. This way, they can show a specific ad depending on the user - something which will improve their convertion rate.
DSPs have a wide variety of segmentation criteria so that, through cookies, these platforms can look for the right users while they surf the web. It's possible to segment by:
- Location, being able to be as specific as postal code
- By day and time
- Using our own database (in case we want to reach those who are already clients or, on the contrary, exclude them)
- And much more
03 Access to thousands of publishers
Using a single platform, RTB allows advertisers to show their ads on a wide variety of websites from which they can know the type of audience they have. This helps brands save time by avoiding having to investigate which pages are the best for their ads.
In the same way, this also allows advertisers to have a general view of the sites in which their ads can appear.
DSPs use optimization algorithms to optimize campaigns in an automated way. The algorithm learns which users convert better and looks for similar profiles.
05 Variety of formats.
RTB offers the possibility to serve ads in most available formats. Let's take a look at which are the main ones and their main characteristics.
Many different sizes, the main ones are:
- Medium rectangle banner (300 x 250)
- Large rectangle banner (336 x 280)
- Leaderboard banner (728 x 90)
- Large skycraper banner (300 x 600)
- Mobile large banner (320 x 100)
Here are some useful tips for creating effective video ads:
- Catch users' attention from the beginning.
- Choose the right format - non-skippable ads work well for branding, while skippable ads are good for generating leads.
- If possible, work with content creators to connect with your audience.
- Customize your ads according to your target audience.
IAB has created a standarized format for fragmented audio ads named DAAST (Digital Audio Ad Servind Template). The idea behind this is to give some guidelines for serving audio ads from ad servers to different devices and platforms using a XML schema.
Now that you know the main advantages of RTB, what are you waiting for to create your campaign? Ask us how to get started, we'll be by your side on each step of the process.