Internet Advertising: Real-time Bidding RTB Process!

At present, all kinds of advertisements are everywhere in the streets and alleys, and the advertisements on the Internet are even more varied. So, do you know about real-time bidding (RTB ) programmatic advertising? What is its specific process? How does it relate to programmatic advertising? The author has given some explanation for this, let’s take a look.

What is the specific process of "Real-time Bidding RTB"? What is the relationship between "real-time bidding RTB" and "programmatic advertising"? What exactly is “programmatic advertising”? This article will answer your questions one by one.

1. The specific process of "Real-time Bidding RTB"

First of all, let’s understand a concept: there are many ways to deliver advertisements, and “real-time bidding RTB” is the most common way of delivering “programmatic advertising”.

Next, we will introduce the specific process of "Real-time Bidding RTB" in detail.

1. Xiao Ming (user) visits Tencent.com (media)
2. After Tencent.com knows that Xiao Ming has visited, it initiates an advertising request to the advertising exchange platform ADX/supply-side platform SSP because there is an advertising space in Tencent.com that needs to display an advertisement. In order to display the highest-priced ads and make the most money, Tencent.com uploaded Xiao Ming's information (including network-wide unique cookies and device IDs) while initiating an ad request.
3. After receiving the advertising request from Tencent, ADX/SSP sends the information to multiple demand-side platforms DSP (such as the status of the advertising space, Xiao Ming’s device ID, etc.), and then waits for the sponsors to bid.
4. At this point, multiple DSPs receive ad request information at the same time. Through Xiao Ming’s device ID, DSPs matched the user on the data management platform DMP and found that Xiao Ming was a "successful man with money who loves cars, yachts, and figures."
5. DSPs analyze the degree of match between Xiao Ming and the advertisers they represent based on their own bidding algorithms, and then decide whether to bid and how much to bid.
6. Since Xiao Ming's needs are very well matched with those of the advertisers represented by the DSPs, most DSPs choose to bid. These DSPs that bid will pass the advertising-related materials to ADX/SSP. Of course, there are also some DSPs that do not bid and wait for the next suitable ad request.
7. Soon, ADX/SSP received bids from more than 10 DSPs. It selected the DSP with the highest bid as the winner of this auction and passed the advertising materials of the winning DSP to Tencent.
8. After receiving the advertising-related materials, Tencent.com renders the advertisement. So Xiao Ming saw another Cadillac car advertisement.

This is the specific process of "real-time bidding RTB", and the entire process is completed within 100ms.

2. What is programmatic advertising?

1. Definition of “Programmatic Advertising”

"Programmatic advertising" refers to an advertising delivery method in which advertisers use digital platforms to automatically purchase and deliver display ads from the perspective of audience matching, and provide real-time feedback on delivery analysis.

There are four key words in the definition of "programmatic advertising" (digital platform, audience matching angle, program automation, real-time feedback delivery analysis), corresponding to four characteristics:

(1) Digital Platform

Digital platforms mainly refer to advertising trading platforms ADX and demand-side platforms DSP. Advertisers place advertisements on these two digital platforms, and the platforms match transactions through specific methods (such as RTB). This is the most basic feature of "programmatic advertising."

(2) Audience Matching Angle

As mentioned in " Internet Advertising (I): A Brief History of Online Advertising - From Contract Advertising to Real-Time Bidding (RTB), traditional advertising is purchased based on ad space, while "programmatic advertising" is purchased based on the number of people.

In "programmatic advertising", the advertising strategy is based on audience matching. Advertisers bid according to the degree of audience matching each time the ad is displayed, thereby achieving precision marketing.

(3) Program Automation

"Programmatic advertising" uses technical means to digitize each link in the entire advertising delivery process, from media requests for advertisements, to advertisers bidding based on audience matching, advertising strategies and algorithms, and then to users seeing the advertisements. The entire "programmatic advertising" purchase, delivery, report tracking, continuous optimization of delivery and other links are all automatically completed by the program at the millisecond level, without the need for human intervention, and are automatic and efficient.

(4) Real-time feedback delivery analysis

"Programmatic advertising" can be understood as automation tools + big data. Real-time data analysis can be obtained throughout the entire process of advertising purchase and delivery. Data can be used to observe and manage advertising delivery, thereby effectively managing marketing output.

2. “Programmatic advertising” is one of many advertising methods

"Programmatic advertising" is a method of advertising delivery, and it is the most common method of online advertising delivery.

Currently, "programmatic advertising" can be roughly divided into four types: open bidding RTB, private bidding PA, programmatic contracts PDB, and priority transactions PD. The "real-time bidding RTB" mentioned before is one of the methods.

(The next article will introduce these four programmatic trading methods in detail, so stay tuned~)

3. Final Thoughts

The above is the author’s summary and understanding of real-time bidding (RTB) and programmatic advertising as an Internet product manager.

Since the author is not in the advertising business (but is quite interested in advertising), and the author's knowledge is limited, there are many omissions or errors in details. You are welcome to criticize and advise in the comment section, and you are also welcome to speak freely and express your opinions.

Author: KC

Source: KC