RTB marketing

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RTB (Real time bidding) is an ad technology that allows advertisers simultaneously participate in an auction to display an advertisement to a particular user.

What is a key difference?

It is the first approach where a user is in the centre of the process. It means that the audience can be fragmented by a single person. Each one will have ads according to his unique interests and thus, the conversion is expected to reach maximum level.

Working principle

There are four participants in the game:
• system where all advertisers’ offers are collected (SSP);
• a platform where an ad can be posted;
• users;
• system with users’ data (DMP).

RTB starts working exactly at the moment a user has clicked a linked from search results or types url of necessary website. Obviously, both participants mentioned are in RTB system. Mere seconds are enough to identify the user according to his recent Internet behaviour: search requests, visited pages and so on.

A user with full description serves here as a lot. All interested advertisers compare the lot with their goals and offer possible prices. The advertiser who has offered the highest price is to show his ad to the user.

A small detail: winner pays not his price, but that one offered by a second rival.

The deal is finished when the page is loaded and a user has a personalized advertisement on his screen.

RTB advantages

• high conversion rates as users are shown the ads that suit to their preferences only;
• minimum risk that a platform will become unpopular and not provide its costs;
• communication with targeted audience only as the advertiser spends his money only for those who can be really interested in the product or services;
• advertisers decide themselves how much they are ready to lay out in each particular case;
• entering RTB will not cost you a fortune, entering is possible with small dollars.

Instead of Conclusion

New methods come and gone, but RTB can be hardly named as a simply new trend or tribute to fashion. It is significantly different method of thinking and interaction in advertising world that will never remain the same now. Personalized advertising at lower costs is a marketer’s number one dream that can easily come true.

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