There are several pieces involved in the real-time bidding process. Before we put them all together! let’s take a look at each piece one-by-one.
- Advertiser: The advertiser is the company or brand that wants to place an ad online.
- Demand-Side Platform (DSP): The Demand-Side Platform is the service that advertisers use to launch their ad campaigns.
- Publisher: The publisher is the website or online property that wants to sell ad space! often referred to as “ad inventory.”
- Supply-Side Platform (SSP): The Supply-Side Platform is the service that publishers use to make their ad inventory available. SSPs use ad exchanges to run auctions where ad spaces are instantly purchased by the highest bidder.
- Ad Exchanges: The ad exchange brazil telegram data connects companies who want to advertise with publishers who want to sell ad space. Ad exchanges carry out the bidding transaction automatically in real time by connecting Demand-Side Platforms and Supply-Side Platforms.
- Impressions: Impressions refer to the number of times an ad is seen or scrolled past. In the real-time bidding process! advertisers pay per thousand impressions. This cost is known as the cost per mille! or CPM! of a campaign.
How does real-time bidding work?
Below! I’ll share what this looks like in action! explaining how real-time bidding works from both the advertiser’s side and the publisher’s side.
Setting Up an Ad Campaign as an Advertiser
On the advertiser side! marketers use DSPs! or Demand-Side Platforms! to set up ad campaigns and track their performance. To determine what ad inventory to bid on! advertisers will set targeting parameters.
For instance! a brand may only want to target users who are in a specific region or who have visited their website recently.
Importantly! there are many tools that today’s marketers can use to help them develop effective ads. For example! HubSpot’s AI Video Ad Creator makes it possible to quickly and easily produce video advertisements! while its Free AI Headline Generator tool can create tailored headlines for any target audience.
Then! once the ad is crafted and the campaign is set up! the advertiser’s DSP will evaluate ad potential in real time. The DSP can then decide whether or not to place a bid! and how much to bid! on a given ad space.
Listing Ad Inventory As a Publisher
Publishers! on the other hand! use automated marketing: read the minds of your customers Supply-Side Platforms (SSPs) to list their ad inventory and the prices they charge.
When creating these listings! they’ll want to include key information that DSPs will be looking for to evaluate whether a specific ad space is a good fit for their target market. That includes the type of content on their webpage and the types of ad space available.
Meeting in the Middle at the Ad Exchange
Next! the advertiser and publisher will meet in the middle at the ad exchange: the marketplace where the real-time bidding actually takes place.
Advertisers set their bid through text services their Demand-Side Platform! while the publisher’s Supply-Side Platform either accepts or rejects the bid. The prices are negotiated based on cost per thousand impressions! or CPM! so the advertiser isn’t paying based on uptime or even ad dimensions. Instead! they’re paying for the number of times! in thousands! that their ad is seen.
