RTB as a technology holds a massive potential and we believe it will shape the future of the adult industry. It provides the technology to effectively increase traffic monetisation and to allows DSP’s to buy inventory in real time. In summary, this technology allows advertisers to reduce costs for their campaigns and to have more specific audience targeting. Meanwhile, publishers can increase their profits by selling their inventory to the highest bidders, whilst ensuring the adverts on their sites are more user friendly.
Maximizing revenues for both DSPs and SSPs is the reason that RTB is becoming increasingly popular in this industry.
How RTB Is Shaping The Future Of Our Industry
What is RTB?
Sabina: Traditionally, internet advertising media was bought and sold as ‘wholesale’. The advertiser chose sites and bought advertising displays by the thousands, hoping it would be seen by its target audience.
About 10 years ago a new technology of buying traffic ‘in retail’ was developed, called Real-Time Bidding (RTB). It’s programmatic buying, which means that each impression is given a value based on the targeting information of the user at that time.
RTB is a powerful tool of monetizing traffic, where DSPs (Demand-Side Platforms) and SSPs (Supply-Side Platforms) buy and sell advertising inventory via an auction in real time. The auction takes place across Ad Exchanges (digital marketplaces), where DSPs (Advertisers) bid on an ad space that is supplied by SSPs (Publishers).
Buying inventory on impression basis means reducing costs for advertising campaigns and leading to higher conversions thanks to audience targeting. Publishers meanwhile increase profits by offering all their inventory to multiple advertisers at the same time, making advertising more user-friendly.
Imagine, you don’t have to buy a box of mixed fruits anymore, because you can pay only for the one you like, and nobody will offer you blueberry if you prefer strawberry.
Maximizing revenues for both DSPs and SSPs is the reason for RTB becoming more and more demanded in the advertising world.
How does it work?
When a user visits a website, a corresponding bid request, which contains different types information about the user, is sent to an Ad Exchange. The Ad Exchange then starts the auction among all the advertisers/buyers whose campaign criteria match to the impression data. DSPs, who are interested in buying this impression, place their bids in response. The advertiser with the highest bid wins the impression and gets their ad displayed to the user.
This same process gets repeated time after time for every ad unit of the website property page. This procedure can take place within 100 milliseconds, including receiving the bid request and serving the ad. The process is so effective because individual impressions can be sold almost instantaneously; based on anonymized data about each impression.
Why is real-time bidding good for publishers?
Sabina: Maximising their profit goes first. Publishers receive more value for their inventory with RTB as each impression can be bid on by advertisers and precisely the highest bid amount can deliver the impression.
As a publisher, you want to monetize as much of your inventory as possible. With RTB, inventory that was previously deemed non-monetized or not worthy can be utilized by advertisers who bid based on the audience data. Econsultancy reported that over 40% of publishers saw an increase in the value of their remnant inventory when taking part in RTB auctions.
Making advertising more user-friendly, as due to smart targeting more relevant offers to the user show up.
Why is real-time bidding good for advertisers?
Sabina: Efficiency. Thanks to real-time bidding, ad buyers no longer have to pay for the impressions they don’t need, or they can use smart pricing based on the value of each impression which cuts down the number of impressions wasted on the wrong users. This approach leads to raising conversion rate and, as a result, reducing costs and maximizing outcome.
Using digital marketplaces, advertisers can access a large array of inventory across a wide range of sites and cherry-pick only the impressions they deem most valuable to them. For DSPs monetizing traffic via RTB allows advertisers to use their time more effectively by getting more inventory at their disposal not having to deal with each publisher directly.
Why is real-time bidding good for users?
Sabina: Instead of viewing dozens of ads, which users are not-interested in, users can get fewer but, more relevant to them offers / ads, which makes advertising more user-friendly.
What are your predictions for the future of RTB?
Sabina: One of our biggest focuses for 2018 is that of Programmatic buying.
Our market is becoming more demanding, that’s why now more and more direct publishers and advertisers integrate via RTB to achieve better results in monetizing their traffic/ promoting their offers. Selling direct inventory and promoting offers from direct advertisers via RTB lets us guarantee more profitable results for both DSPs and SSPs.
We have a powerful, advanced in-house built technology which we are investing a lot into. TrafficStars is fully OpenRTB compliant, besides, we integrate via XML/JSON. With a huge supply of high-quality traffic from a vast inventory of direct sources, we let our advertisers get highly converting traffic, meanwhile our publishers are offered competitive bids/prices for their inventory.
RTB is becoming one of the key aspects of our business. Every week we integrate with new RTB partners and we help other companies to develop such technology.
RTB holds massive potential and we believe it is shaping the future of our industry.
Where can we find more information?
TrafficStars‘ RTB technology is now available for affiliate networks, direct advertisers and publishers, SSPs and DSPs.
DSPs can easily access one of the largest inventories in the industry, with over 30 billion monthly impressions SSPs can monetize their traffic effectively with premium offers and our exclusive advertiser base.
For additional information regarding RTB integration, contact TrafficStars at email@example.com
Contact information: Sabina Ismailova, Head of RTB – firstname.lastname@example.org