Real-time Bidding (RTB) Introduction (Basic article)

Objective:

When it comes to "real-time bidding", we must not be unfamiliar, then why the real-time bidding development so fast, of course, this is mainly due to the overall mobile Internet environment mature, and China's local mobile advertising market explosion growth. So what exactly is real-time bidding? What is the process like? The following is a brief introduction from the business perspective.

Brief introduction:

RTB mode is a new mode of purchase in the network advertising industry, with the traditional PPC Ads (billed based on number of users), CPM Advertising (1000 view billing), CPC Advertising (per-click Billing), Monthly Flat (monthly billing), Daily Flat (Package day billing) and so on compared RTB is to bid on the basis of each advertisement display exposure.

in the display-type advertising market, the goods traded is the exposure of each advertisement display, the demand side is the advertisers and agents, the supplier is the major media, then the most effective bidding strategy is on the basis of each advertisement display exposure, according to this show the demand for exposure, in support Vic Auctions model of the big environment, giving different bids for a similar auction-like transaction, which is RTB advertising.

Characteristics:

Maybe you don't have a preliminary idea of RTB here, so let's look at the characteristics of RTB through a description of several industry insiders.

"RTB should not be a marketing model independent of display advertising, but an infrastructure that is stored in the overall system and is the standard of the Internet marketing model." Any corporate advertiser should not neglect the RTB model when choosing a marketing method. Because only this model can truly reflect the effective relationship between market supply and demand. --Wang Hongpen, executive vice president, Ogilvy China.

"Real-time pricing (RTB) has brought about a change in the overall market structure, forming a centralized shopping for the various media flows, and building a highly marketable supply and demand relationship." In the case of Internet media, in RTB mode, regardless of the type of media site, ads are purchased by eyeballs, clicks, and sales opportunities. --Jin Ling, vice president of Phoenix New Media.

Process:

as 1 is a RTB description of the ad presentation:

Steps1:users to useWebBrowser access to media sites, such aswww.yahoo.com. MediaYahooThe contents of this website will be,such as news, presented to the user. At the same time, the media will display ads to users in some ad positions. while the main job of the media is to show high-quality content to users, it also requires advertising to make money so that the content-providing business can continue. They can use their own sales force to sell advertising inventory. However, for the media,RTBis an increasingly important channel for sales of advertising inventory. Here we assumeYahoodecided to move the upper right corner ad bit throughRTBmode of sale.

Steps 2 : Yahoo To deliver information to an advertising trading platform, such as A. The information delivered includes URLs, ad locations, user Cookie IDs , and so on.

Steps 3 : Advertising Trading Platform A organization of an auction to many DSP (demand-side Platform) send an auction request. Suppose Uniqlo is one of the DSPs .

Steps 4 : when Uniqlo DSP The server receives a request from the ad trading platform to pass the data to the bidding engine.

Steps 5 : The bidding engine sends the user ID to the user and the Advertiser information database, to see whether the needs of users and advertisers match.

Steps 6 : The auction engine receives information about the user and The advertiser and decides whether to participate in the bid and bid price.

Steps 7 : The auction engine generates a bid response and passes it to DSP server. The bid response includes other information such as the bid price and where to get the advertisement.

Steps 8 : Uniqlo DSP The server sends an auction response to the AD trading platform A .

Steps9: Advertising Trading PlatformAupon receiving allDSPthe server's response or deadline arrives for auction. Advertising Trading PlatformAthe deadline is100ms, is the advertising trading platformAsend bid request and receiveDSPthe time difference between bid responses. Ad exchange platforms typically runVickeryAuction mode, also known as the second price auction. Among them, the highest bidder wins and pays the second highest bid price. Here we assume UniqloDSPis the winner of the ad exposure auction deal. ( Vic auction Vickrey Auction is commonly known as secondpriceauction, That is, the final price paid by the auction winner is the second-highest offer, plus about a percentage increase. )

Steps Ten : Advertising Trading Platform A Notify Users Web the winner of the browser auction. the Web Browser sends an ad exposure request to the Ad server where the ad was creative.

Steps One : The Ad server sends the idea to the user Web Browser.

Steps A : users see ads on the site. If the user is interested in the ad, he clicks on the ad and then goes to the Advertiser's Landing page. The user browses to The advertiser's website and may take further action. For example, if The advertiser is an e-commerce company, the user may have a purchase activity on the ecommerce site.

Summarize:

– RTB yes the trades are based on every advertising opportunity (AD inventory).

– an ad a series of trading processes are completed in milliseconds, and web browsing users do not notice a delay in time.

– A website can be DSP in multiple adnetwork Participate in multiple Ad Exchange sales of advertising stocks in the market; In contrast, advertisers can DSP manage multiple ads into multiple Ad Exchange AD Serving

so RTP What benefits do they bring?

For advertisers:

– DSP It is possible to give advertisers the opportunity to advertise their niche in a way that allows them to do the best they can, because it gives advertisers such fine-grained data that they can make it easier to anticipate the effects of this ad presentation . ;

– advertisers no longer need to spend a lot of manpower and time in filtering ad positions, systems and tools can help you do all this, as long as you will marketing purposes through a certain way " Tell " System.

– from "Real Time" another layer of meaning can be known that marketers are more flexible, we do not need to buy magazines, TV ads, into a large budget and difficult to adjust the dilemma among .

For advertising providers:

– the same, SSP (supplyside platform) let the site owner of every ad inventory in Ad Exchange found in the highest Bidding to get the highest income.

Reference

Http://www.math.pku.edu.cn/teachers/yaoy/Spring2013/RTB101_iPinYou_XuehuaShen_English.pdf

Http://www.techinads.com/archives/41

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Real-time Bidding (RTB) Introduction (Basic article)