In terms of pricing, publishers determine the floor prices of ads, with transaction prices fluctuating based on supply and demand.
Advertisers are persons, brands, organizations and other entities that pay to have their ad content placed on the properties of publishers in order to advertise and promote their products or services to target audience.
Real-time bidding allows advertisers to bid on individual impressions. As supplemental information is provided for each offered impression, its perceived value for advertiser can be more precisely calculated, leading to more cost-effective marketing campaigns.
What is the difference between an ad exchange and RTB? An ad exchange is a 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.
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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.
Ad exchanges: An ad exchange is a digital network that connects advertisers or DSPs with publishers or SSPs. The ad exchange is where real-time bidding takes place.
Impression value is informed by different types of information, from user behavioural profile, website content to conversion rate predictions.
A demand side platform is programmatic software for advertisers that provides automated, centralized media buying from multiple sources.
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