Real time bidding

from Wikipedia, the free encyclopedia
The articles Real Time Bidding , Real Time Advertising and Programmatic Advertising overlap thematically. Help me to better differentiate or merge the articles (→  instructions ) . To do this, take part in the relevant redundancy discussion . Please remove this module only after the redundancy has been completely processed and do not forget to include the relevant entry on the redundancy discussion page{{ Done | 1 = ~~~~}}to mark. Martinguenter ( discussion ) 13:07, 25 Aug 2015 (CEST)


Real Time Bidding ( RTB ), also real-time advertising ( RTA ), is a term used in online marketing . It is a method by which advertisers in the delivery of online advertising media automatically and in real-time (Engl. Real time ) on advertising space and ad impressions are able to offer on the Internet. The advertising material of the highest bidder is delivered for each ad impression.

The real-time bidding process is mainly used in so-called programmatic advertising .

Origin of real time bidding

Real Time Bidding has its origins in Google's text ad auction model . In the USA, real time bidding has been one of the rapidly growing trends in the online advertising market for some time. In a study there, Forrester Research reported 2010 sales of US $ 353 million through RTB. In 2011, sales are expected to double. IDC forecasts sales of 168 million US dollars in 2012 for the German real-time advertising market. Sales are expected to grow to 692 million US dollars by 2016.

functionality

Real Time Bidding is a further development of the classic bidding process for the delivery of online advertising by ad servers . Here advertisers submit general bids before the campaign starts, which reflect the value of their ad impressions on the various websites or in various advertising channels. The ad server receives this information and then always delivers advertising banners to the advertising spaces for which the bid submitted in advance exceeds that of the competitor. With Real Time Bidding, on the other hand, you can bid on each individual ad impression in real time, i.e. while the user is calling up the respective website - basically like an exchange. Here, the publishers (website operators or sellers of advertising space) determine which advertising space they want to sell and what minimum price they want for it. The areas are then linked to the real-time bidding platform, which takes care of delivery.

In the process of real time bidding, the average loading time of a website of 2.6 seconds is used and the advertising space is auctioned within a few milliseconds. The real-time bidding platform determines the auction price within 30 milliseconds for an average of 10 advertising networks. The buyers (ie the advertisers) are "asked" at what price they are willing to compete for a specific ad impression at this second. Bids and auctions take place in the unit of thousand contact prices (CPM). In addition, advertisers can set a budget (per day, per week, per month) and determine how many displays of the respective advertising material they would like to see per day.

In the USA, the bidding process has developed in such a way that not only the advertising space alone, but the profile of the respective user with relevant data and the content environment are important for the placement. For example, companies “mark” their site visitors and their search queries so that they can be found again using “retargeting” when visiting other websites (for more information, see the “Benefits” section). The following applies: The more is known about the user, the more valuable this ad impression becomes.

From a technical point of view, RTB needs new technologies, because online advertisements can not only be traded on advertising marketplaces, but also between so-called demand-side platforms (e.g. online media agencies) and supply-side platforms (e.g. advertising space providers). As many agencies or advertisers as possible must be able to access a publisher's inventory using technology for real time bidding or an ad server, so that there is really competition for advertising space in the auction. This shows how high the demands on the technology are, because these processes must be determined and analyzed in parallel in real time. Ultimately, the aim is to reach the viewer of a website with exactly the right advertising - as with classic " targeting ".

actors

On the one hand, publishers (website operators) set their available inventory, i.e. their advertising space, via appropriate interfaces. On the other hand, media agencies or advertisers then submit their offers for the desired impression directly. If the media agencies had previously bought advertising space for their customers manually from different marketers or directly from publishers, this is done automatically in the real-time bidding process via demand-side platforms ( DSPs ).

The DSPs enable agencies as well as advertising customers to access several supply-side platforms ( SSPs ) directly. From a technical point of view, they are trading platforms that bundle the demand from advertisers under one surface in order to optimize the purchase price of ad impressions and to simplify the booking process and reporting. They do not offer advertising space themselves, but it is possible to increase the prices e.g. B. to automatically compare advertising networks (ad networks) and marketplaces, make a booking decision and participate in real-time auctions for advertising spaces from various sources.

In Germany u. a. Adnologies, AppNexus, Unidesq, Metrigo, RevCloud, Rocketfuel, AdGear, Sociomantic, Spree7 (Mediamath), Turn and YD are active as demand-side platforms.

The counterpart to the demand-side platforms are the supply-side platforms ( SSPs ), which are used by publishers to gain parallel access to various advertisers who can then offer advertising contacts that are suitable for them in real time. The terminology yield optimizer is also used as a synonym for supply-side platforms . Mainly the inventory of publishers is bundled and sold, which is not marketed by their own distributors or not sold by their marketers. The aim is to sell the inventory at the best price in the interests of the publisher and thus to increase the income from website marketing. In contrast to ad networks, SSPs themselves do not act as advertising space, but rather act as a technical mediator.

In Germany u. a. Pubmatic, Rubicon Project, Yieldlab, Improve Digital and AppNexus are active as supply-side platforms.

In addition, there are so-called data management platforms , which can bring together different data from websites and use it to offer advertisers more refined target group targeting , such as retargeting or behavioral targeting . The data comes either from your own data ( first party data ) or from third sources ( third party data ), e.g. B. from online marketers or social networks.

advantages

The cooperation of the actors in real-time bidding has the advantage that advertisers gain flexibility with the support of optimization and reporting technologies. This gives you better control options for your campaigns. On the other hand, publishers will be able to achieve generally higher prices for their advertising space if the highest bid wins for each individual ad impression.

The combination of real time bidding and targeting methods results in further advantages:

  • With real-time bidding, for example, companies can "mark" their site visitors and their search queries with cookies and use cookie matching services to recognize them when they visit other websites ( retargeting ). In real time, the companies can then bid for the advertising space on other web pages in order to target the marked visitors again by z. B. the previously viewed product is advertised. This reminder effect can increase the advertising effect of campaigns.
  • Another possibility in which cookies are not used is the so-called "refinement" of the traded ad impressions with semantic targeting . As a result, users are only addressed by the advertising in relevant editorial contexts. With real-time advertising, companies can select and control advertising material that matches the content of the respective website. In this way, a greater advertising impact can be achieved than with traditional, non-context-sensitive advertising.
  • Knowing which groups of users react to advertising in what way and how the click probabilities of users can be determined opens up considerable potential for optimization in the individual delivery of online advertising. This applies in particular when it is a matter of not controlling any further advertising to users who are not interested in clicking and determining the frequency of the advertisements with which an optimal advertising effect can be achieved.

disadvantage

The placement of advertising media via real time bidding is associated with considerably more technical effort than traditional “manual” trading. This necessarily increases costs, even if the comparison is difficult, since the same inventory is never sold equally in both ways and the inventory is always broken down into different price categories when trading via RTB.

Header bidding

A (weakened) form of real-time bidding is header bidding. In contrast to RTB, communication does not take place between two (ad) servers. Instead, JavaScript is installed on the seller's website that sends the information directly to the partners (DSP / AdExchanges) and collects their bid. This has the advantage that it is relatively easy to implement technically for the website operator and also works with ad servers that do not support real-time bidding. At the same time, however, the page loading time or the time it takes for the advertisement to load is extended, sometimes considerably, since this is now dependent on the connection speed of the user. There are also disadvantages when optimizing campaigns: Since the bids of the header bidding are (must) queried in advance, the DSP / AdExchanges cannot be told which price may have to be outbid in order to win the display. As a result, buyers may bid less than possible, which in turn means lower income for the seller.

Individual evidence

  1. ↑ a b Stange, M. and Funk, B .: Real-Time-Advertising. WIRTSCHAFTSINFORMATIK 2014, Volume 56, Issue 5, pp. 335–338.
  2. ↑ Article on the RTB study at MarketingManagementBlog.com
  3. ↑ a b c Trade journal Horizont about Real Time Bidding March 3, 2011
  4. ↑ Study from October 2012 ( Memento of the original from June 2, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.idc.com
  5. ↑ YouTube video explaining real time bidding
  6. ↑ Interview with Christian Geyer on the subject of RTB at Ad Networks, April 15, 2011 ( Memento of the original from June 21, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.adnetworks-blog.de
  7. ↑ journal ADZINE via real-time bidding, 30. June 2011
  8. ↑ a b c Interview with Christian Geyer on the subject of RTB at Ad Networks, April 15, 2011 ( Memento of the original from June 21, 2011 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.adnetworks-blog.de
  9. ↑ Marketing journal on Real Time Bidding, February 14, 2011 ( Memento of the original from July 14, 2011 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.absatzwirtschaft.de
  10. ↑ eConsultancy.com via DSPs
  11. ↑ E-Book "Real-Time Advertising: Functionality, Actors, Strategies" (p. 21), September 2013 (PDF; 1.4 MB)
  12. ↑ Sell-side platform in the Adtelligence Wiki
  13. ↑ yieldoptimierer.de
  14. ↑ E-Book "Real-Time Advertising: Functionality, Actors, Strategies" (p. 18), September 2013 (PDF; 1.4 MB)
  15. ↑ E-Book "Real-Time Advertising: Functionality, Actors, Strategies" (p. 22), September 2013 (PDF; 1.4 MB)
  16. ↑ Technical article on Real Time Bidding on the Competence Site ( Memento of the original from September 13, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.competence-site.de
  17. ↑ Interview with Ronald Paul on media-treff.de May 31, 2011 ( Memento from January 2, 2012 in the Internet Archive )
  18. ↑ Performance gain in real time bidding from a scientific perspective
  19. ^ Joe Mohen: RTB Is the Most Overhyped Technology Ever . Advertising Age, adage.com. Retrieved April 25, 2014.