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Glossary of Mobile Advertising Terms

Real-Time Bidding (RTB)

What is Real-Time Bidding (RTB)?

Real-time bidding (RTB) is a way of buying and selling display ad impressions in real time and per one impression at a time, usually through ad exchanges or supply side platforms (SSP). Since it’s all done in real time, if a bid is won, the ad will instantly be displayed on the publisher’s site.

How does Real-Time Bidding work

RTB is beneficial for advertisers since they have the ability to concentrate only on the inventory that’s most relevant to them. Advertisers can also coordinate their campaign budgets in real time so they can improve their campaign performance. Since ad exchanges also have a prominent role in RTB, buyers and advertisers usually use a demand side platform (DSP) to help them automatically make a decision, based on the different parameters used by the advertiser (target, price, etc.).

On the other hand, sellers use supply side platforms. A good thing about RTB is that’s effective for both advertisers and publishers. Advertisers can have a more targeted and efficient buying that will increase their ROI, and users will see more relevant ads. On the publisher's side, RTB allows them to show their inventory to a larger audience, plus, they can also know who’s buying what, which they can use to their advantage.