RTB: what it is and advanges for SMEs
So, do you know what RTB is?
RTB is the acronym for Real Time Bidding, an online advertising purchase system that works in real time through bids for the ad space offered by websites. This immediate trading process of each unique impression is done in miliseconds and in an automated way. The main objective of this method is to reach the right audience for each particular case and avoid wasting money on useless impressions.
This whole process is made possible by correctly managing and combining the use of Big Data, the users' information collected by cookies on the websites, and the DSP, SSP and Ad Exchange platforms.
This is how RTB works
The programmatic buying process is about putting together users, editors and advertisers through smart technology. Every time a user accesses a web page, cookies create a visitor profile with all the necessary information to offer a better experience focused on personalized content.
This huge volume of data is analyzed, managed and processed through Big Data, creating patterns that will allow brands and advertisers to make decisions in a automated and immediate way.
Advertisers create the demand through DSP platforms (Demand Side Platform), like RTBMind, where they can establish the campaign's parameters and bids according to their interests. Editors offer the supply of ad spaces, which are gathered on an SSP platform (Sell Side Platform), that optimizes their results.
The places where supply and demand meet are the Ad Exchange platforms. Here it's where the real time transaction happens; advertisers bid with the goal of having their ads displayed in spaces of interest for their target audience, and the best bidder is the one who gets presence in the offered website.
Advantages of RTB for SMEs
RTB has great and numerous advantages for all kinds of businesses. Next, we'll explain which ones there are and the benefits they can bring, with a special focus on SMEs:
01 Audience segmentation
Investing in ads that don't get the expected results because they aren't interesting to the impacted audience is a huge disadvantage to any business, and this is the biggest advantage that RTB has: advertisers can optimize the campaign or ad by doing an accurate audience segmentation according to their users' behaviour, needs and interests; having their ads shown only to their target audience.
This way, the brand will only show its ads to the desired audience, who has more probabilities of converting. Moreover, with RTB the ad wil be shown in the right moment and on the website where it's more likely to get the user's attention.
02 Cost reduction and optimization
The audience segmentation this model is capable of doing means greater cost reductions for advertising companies thanks to its optimization; advertisers will only have to invest in impressions that are displayed to their target and, therefore, these will not be wasted, maximizing the advertisements or online advertising campaigns effectiveness.
Also, thanks to the bidding system, this model offers real prices when establishing the purchase of ad space, since the advertiser himself is the one who sets the amount he is willing to pay..
Another advantage for companies provided by RTB is transparency; the advertiser will be able to know the exact url of the web where each ad is located, identify the users that have been reached and the costs associated to each unique impression.
This increase in the efficiency control of each campaign or advertising action allows advertisers to know information previously unknown.
04 Another advantages
Among the advantages this programmatic buying process offers, we can also include getting better results due to 1) the wide variety of formats it offers and 2) the chance of acquiring better advertising spaces, since RTB has purchase priority over Google Display Networks.
On RTBMind you can create your programmatic ad campaign, investing the amount you consider appropriate. Our platform allows both big and small businesses to enjoy all the RTB advantages.
Of course, if you need help or guidance, we're here to help.