FUNDAMENTALS OF OFFERING IN GENUINE TIMES
Everyone in the AdTech business will have learnt about terms like "Programmatic" and "RTB" and how they are used by trading desks within program purchasing. While the website is being loaded, the user's information is forwarded to the ad exchange, which places the ad spaces in an ad sale according to the second price rules.
That means that the highest offerer will win, but the prize is the second highest offerer. What's everyone in the field of marketing doing about it? Historically, promotional inventories have been purchased and resold in large quantities. Ad stock is the number of ad impressions available for sale to marketers in a given timeframe.
When it comes to printed matter, there are limitations to how much ad room there is. That is not the case with online merchandising, and ads can be placed in multiple places. Thus some stock was still available. To monetize the remaining contents, publishing houses have driven them through ad markets on an auctions basis.
Publishing houses were also able to profit from the large amount of information available to them, which made it possible to address target groups even more precisely. Although it was the publisher who used RTB to monetize their contents, the advertiser soon found out about RTB's many possibilities. By comparing RTB with conventional forms of publicity (e.g. printed and broadcast), you send your messages to the people.
RTB allows you to show them related advertisements in live mode. Both the buyer side (advertiser) and the seller side (publisher) may profit from RTB. The RTB gives marketers more power over the campaign throughput. RTB makes sure that the advertiser on more than one website and one appliance reaches their target audiences immediately.
It will also increase the volume of their advertisements. After all, the need to work directly with advertisers or ad serving companies to agree ad rates and create more visibility is eliminated during the auctions. The RTB can help publisher increase sales from their ad book.
When you use the chart above, you will recall that the ad swap bids give the place to the highest bidsder. RTB's system of prices at auctions has led to concern that RTB may benefit the advertiser at the publishing houses' cost. Finally, since publishing houses no longer quote the prices, some fear that RTB could lead to lower prices paid by advertising companies for their inventories.
There are, however, ways for publishing houses to maintain full controls over pricing. Publishing houses can define a lower limit value (the lowest selling point for their stock). In order for a trade to take place, the reserves must be maintained. In this way, advertisers can open their advertisements for sale while making sure they maximize their stock levels.
Everybody in the online marketing business talks about it because everyone wants a piece of the RTB cake.