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Real time bidding operates through a popular programmatic advertising model called cost per mille, or CPM. Certain types of programmatic ads are measured by cost per mille (CPM), which means cost per thousand impressions.
3When a winning bid is determined, the ad is served to the user. The entire process takes 200 milliseconds.
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After the winning ad is selected, it is displayed on the webpage of the visiting user. The complete process, from user visiting the webpage to the final display of ad usually takes less than cem milliseconds.
The important feature of the RTB process is its focus on the users, in contrast to other forms of advertising which can focus on the content and topics of publisher’s webpages.
Per-impression buying: By bidding on individual impressions instead of a predetermined fixed price, RTB offers a cost-effective method of ad purchasing that prevents overspending.
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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.
Payment Processed: The advertiser pays the agreed bid price through the DSP. The SSP then collects the payment, deducts its fee, and remits the remainder to the publisher.
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Ad exchanges: An ad exchange is a website digital network that connects advertisers or DSPs with publishers or SSPs. The ad exchange is where real-time bidding takes place.
Customizable real-time reporting: Every campaign is different, which is why one-size-fits-all reporting doesn’t offer the insights needed to hit your key marketing metrics. Performance TV offers a powerful reporting suite that offers accurate metrics including ROAS (Return on Ad Spend), a fully customizable dashboard, and full Google Analytics integration to monitor your CTV campaigns alongside other digital marketing channels.
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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.