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Real Time Bidding

Advertisers sometimes struggling with generating a good ROI in their marketing budgets that go towards online advertisements. Often, the clicks that they receive on their ads do not correspond with their target group that would be more willing to purchase their product. A solution that would solve this problem is Real Time Bidding.

Real Time Bidding is the name given to the process where you create a live market for the ad spot. How this system works is, when a user enters a web page,  the web page generates an ad request. An ad request consists of the webpage structure(where the ad will be, size, surrounding elements),  the website itself (URL), and any user data(browsing history, time zone). From here, advertisers values the impression and sends bids out for the auction. Though the auction is 1st bid auction, where the highest bidder wins, the advertiser knows that he is bidding for an ad spot that targets the audience he thinks will like his product, thus more effectively spending money on marketing and increasing ROI for the advertiser. Real Time bidding also is an incentive for web pages to adopt because advertisers know that their ads are being viewed more by their target demographic. As a result, the price of placing the ad would be higher and the web page owner would increase their payoff as well.

 

An In-depth Article on Real Time Bidding

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