The Reality Of Real Time Bidding

The Reality Of Real Time Bidding


By Tashmeet Kaur, Business Development Manager, Innity

Many have been questioning the hype of Real Time Bidding (RTB). I believe it is a hype that will continue to emerge as a feature of online advertising optimization technology. RTB allows advertisers to reach out to the right user within a specific time and assign an individual value to each specific ad impression.

In order for RTB to be successful, every single ad impression is sold individually; one impression at a time. Every ad has a different value as determined by various variables such as – the site the ad is to be displayed on, the ad format sizes, the location of the page etc (Maingi 2011).

So here’s how real-time bidding works:

  1. Someone lands on a publisher’s web page. An auction is triggered instantly to find the right buyer for each ad spot on the page.
  2. The marketplace sends out a bid request to all eligible bidders.
  3. Bidders have to respond in a fraction of a second with their offer for the specific ad while taking into consideration all the data that is available.
  4. Someone wins the auction, the ad request is made to their ad server, and the ad is returned to the web page (Maingi 2010).

Many advertising experts have predicted that RTB will change the course of advertising as we know it; the next revolution perhaps that brings benefits to all the players in the advertising ecosystem  –  the publisher, the user and the advertiser (Zucker 2010).

Maingi, M, 2010, ‘Real Time Bidding And Demand Side Platforms’, viewed 21st February 2011, < >

Zucker, B, 2010, ‘Understanding Real Time Bidding From The Publisher Perspective’, 21st February 2011

Innity is the leading digital media network in APAC that provides interactive online marketing platforms and technologies for advertisers and publishers. We believe in leveraging on the power of digital marketing services and creative technologies to drive measurable results for our clients and convert their audiences into consumers.