What is Real-time-bidding? How DSP, SSP and Ad-exchange network works?

1. Real-Time-Bidding for
Online Display Advertising
What is RTB?
How it works?
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2. What is Real-time-bidding?
Real-time-bidding (RTB) is the new process
of selling and buying online display
advertising in real time on one ad
impression at a time.
RTB allows ad inventory on a web or mobile
site to be purchased by the individual
impression through a bidding system that
occurs in milliseconds before a web page
is loaded to a consumer.
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3. How it works?
Key players in the RTB landscape:
1. The Publisher - with ad inventories to be auctioned to advertisers
1. The Supply Side Platform – a tool which publishers use to
manage ad inventories to optimize revenue yield
1. The Ad Exchange - where ad inventories are floated to be bid
by advertisers
1. The Demand Side Platform – a tool advertisers use to
automate purchases/bids for ad inventories and to set buying
parameters for their campaigns
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4. How does RTB work?
PUBLISHERS
RTB Platform
ad
$1.50
wins
$1.50
ADVERTISERS
e.g.
$0.80
$0.50
$1.20
wins
ad
Publishers with ad inventories
(ad spaces) to be sold to
advertisers
$1.20
RTB platform
manages inventory of ad
spaces and float it to
advertiser for bidding
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Advertisers bid for
those spaces via
real-time auction

5. How it works? (Scenario)
1. A user clicks on a website (publisher)
2. The website (publisher) sends a bid request to the
RTB platform that manages thousands of
advertisers
3. Bid request sends message to potential bidders saying “We have a
28-year old, female, based in Singapore, recently searched for flights to
New York”
4. RTB platform informs advertisers and ask “How
much are willing to bid for this user?”
5. Different advertisers place their bid amount, eg. $0.50, $1.05, $1.50
6. Highest bidder wins, ad is shown to user on website.
This takes place in 300-500 milliseconds, in a blink on an eye.
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6. Benefits of Real-time-bidding
• For Publishers, RTB is designed to maximize the
value of each individual impression, thus
increasing advertising dollar
• For Advertisers, enhance consumer targeting
capabilities and more targeted ad dollar
spend, with ability to track and optimize campaign
on real-time
• For Mobile advertising, RTB platforms are
particularly useful for contextual and geolocaltargeted campaigns
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7. The Online Media Buying
Landscape
Real-time-buying platform
Diagram courtesy of Adexchange.com
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8. The Online Media Buying
Landscape
Diagram courtesy ofMarketingLand.com
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9. Companies in the Online Media Landscape
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10. Prepared by Izati Ngaliman
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