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Wiki Article
Real time bidding operates through a popular programmatic advertising model called cost per mille, or CPM. Certain types of programmatic ads are measured by cost per mille (CPM), which means cost per thousand impressions.
3When a winning bid is determined, the ad is served to the user. The entire process takes 200 milliseconds.
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Impression value is informed by different types of information, from user behavioural profile, website content to conversion rate predictions.
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Saving time: RTB enables advertisers to place hundreds or even thousands of ads within seconds. That’s exponentially faster than traditional ad placement.
But what is RTB and how does it work? How is it different from programmatic buying? And is it right for your brand? Below we walk through the details.
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What is the difference between an ad exchange and RTB? An ad exchange is a get more info technology platform that hosts open auctions for programmatic media buying. Real-time bidding is the protocol that the platform uses to process bid requests and bid replies from publishers’ SSPs and advertisers' DSPs taking part in the auctions. Is it difficult to build a real-time bidder? To build an RTB programmatic software you need a lot of time, effort, and money. Aside from that, you can’t be sure your team will deliver a solution that meets industry standards and your business needs. Yet you can take a shortcut and buy tried-and-tested white-label software, customize it, and start using it within weeks. How are bidding conflicts avoided in real-time bidding? It’s difficult to avoid competing with yourself if you run ad campaigns using several self-serve DSPs. These platforms might have the same SSPs among their traffic sources. It means each of your DSPs can potentially bid on the same impression sold by one of their common SSP partners. But if you use your own DSP platform connected directly to a chosen list of SSPs, you won’t experience bidding conflicts. How is the final price per impression set in RTB? The final price for an ad impression depends on three parameters: the publishers’ price floor, the highest bids of competing advertisers, and the type of RTB auction.
Ad fraud: Scammers can use bots to trick ad networks into selling false impressions, which reduces the likelihood of your ad being seen. Using an SSP that verifies media buyers, like Emodo Access, can significantly reduce your risk.
Brand safety: Due to the randomized nature of RTB, there is a chance your content could appear next to content that doesn’t align with your brand.
It’s important to note that advertisers don’t pay for each individual impression. Instead, publishers charge based on eCPM, or the cost per thousand impressions.