The concept of Real-Time bidding is a part of programmatic advertising, where companies advertise in real-time on the basis of consumer behavior and traits. It is a kind of bidding system which allows publishers to monetize the advertising space available on their website by selling them to buyers through an auction system. Here, in less than 2 minutes, the Supply-side platform and demand-side platforms are connected to make the transaction happen.
How Real-time bidding works?
When you browse a website and you love a particular section of the website, let’s say you read articles on Men’s grooming. Now, you actually trigger an ad space (an impression) which subsequently will be auctioned in real-time. Now, if many advertisers are bidding for the same space as your profile matches the target of several buyers (brands such as Philips, Nivea, or maybe Gilette), the one with the highest bid will win the auction and get the chance to broadcast its message.
So, it is possible that you will see an advertisement on Philips Men Trimmer while someone reading an article on Women’s Clothing will see Myntra’s ad.
Examples
- Nissan recently automated its programmatic bidding to generate more qualified visits to its website. Nissan tracks parameters like consumer visits on multiple pages, if they use the car configurator feature or watch a video, indicating a greater intent to purchase. The employed system uses machine learning approaches to predict the right bids based on a variety of signals, such as the user’s device, location, language, operating system, or remarketing lists and the time of day. The company has improved cost-per-qualified-visit by 33-percent and 67-percent in conversion rate.
- Skoda employed programmatic advertising to create a more relevant and engaging customer experience. By using personalized advertisements that target specific audience segments, they managed to increase the relevance of advertisements to each user. As a result, the OEM realized a 53-per cent increase in conversion rate and a campaign nine times less expensive than the average
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21st century is where advertising mantra says-
“Make it Digital, Make it Programmable, Make it Smart”.