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With RTB, the marketing departments can avoid spending marketing resources on purchases of block ad inventory with non-targeted and thus often irrelevant users. Frequency capping enables advertisers to limit the number of times a user is exposed to the same ad.
Most importantly, SSPs enable publishers to simultaneously offer ads on their webpages to many different ad exchanges and ad networks.
User privacy: RTB allows advertisers to home in on specific users, which has created concerns over the security of sensitive user data. Anonymous audience segmentation solutions like Emodo Audiences strengthen respect for user privacy without sacrificing targeting accuracy.
To dispel the most widespread misconception, we should emphasize that programmatic media buying (or advertising) is a much broader concept than real-time bidding. It’s an umbrella term for three types of automated digital ad space trading: Programmatic direct doesn’t require you to participate in any auctions at all.
Multiple advertisers can bid on any impression at any moment. Whoever offers the highest bid wins the auction, and their ad appears on the page.
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Ad Exchange then reviews the received bids, removing those that are outside of publishers’ criteria. Next, it selects the auction winner and the corresponding advertising content appears on the publisher webpage.
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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 is a type of programmatic advertising. There are other types of programmatic advertising such as private marketplace or programmatic direct, which offer different controls and functionality for publishers to sell their inventory.
The main advantage that RTB offers to both publishers and advertisers is efficiency — as an automated process, RTB eliminates the negotiations involved in traditional ad deals and significantly reduces the time it takes to buy and sell inventory.
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Publishers worry that RTB will enable brands to pay them less for their inventory. However, by selling their impressions to the most relevant and motivated advertisers, the RTB auction helps publishers earn the highest price per impression. With real-time bidding, publishers monetize their media better because they can: Virtually trade with unlimited advertisers to minimize unsold inventory.