What is RTB (Real-Time Bidding)?
RTB is the automated auction where advertisers bid on impressions in real time as pages/apps load.
Understanding RTB
RTB underpins programmatic buying across the open web and CTV by auctioning each impression in milliseconds. DSPs evaluate bid requests, decide value, and bid—often in under 100ms—based on audience, context, and predicted performance. The system is designed for efficiency and scale, but results depend on clean measurement and safety guardrails. Frequency and geo controls shape delivery quality as you expand. Bringing product feeds enables dynamic creative that raises intent in display and video.
Because RTB runs continuously, small configuration changes compound quickly. Clear allow/block lists and curated marketplaces protect where you show. Consistent naming and pixels make reporting comparable across tests. Start narrow to validate lift before scaling. Treat RTB as a complement to walled gardens that extends proven tactics, not a replacement.
Why RTB (Real-Time Bidding) matters
RTB matters because it connects your audiences to inventory beyond walled gardens while preserving control over placement and pacing. It prices impressions according to predicted value, helping budgets flow to higher-quality opportunities automatically. With proper safety and measurement in place, RTB can uncover incremental customers at sustainable costs.
- Efficiency: Prices align to predicted value.
- Scale: Access massive inventory through exchanges.
- Control: Apply frequency, geo, and brand-safety rules.
How RTB works
RTB works by running a real‑time auction for each impression as pages/apps load. The publisher’s SSP packages the opportunity and sends a bid request with context to exchanges and DSPs. DSPs score the request against your targeting and predicted value, then respond with bids and creatives. The highest eligible bid wins and the ad serves, with delivery recorded for reporting. Measurement pixels and server‑side events ground optimization so wins reflect real outcomes. Frequency caps and allow/block lists shape experience while you scale.
- User requests a page/app.
- SSP sends bid request to exchanges/DSPs.
- DSP bids with creative; highest eligible bid wins.
- Ad serves and records delivery.
