When advertisers visit an app<\/a> or website, a real-time auction is conducted. As an advertiser’s bid wins, it gets an ad space immediately and starts displaying on the publisher<\/a>‘s property (website or mobile app).\u00a0<\/p>\n\n\n\n RTB process takes the support of platforms like Supply Side Platforms, Demand Side Platforms, and Ad Exchanges. <\/p>\n\n\n\n Let’s get an insight into these three and know how they help facilitate real-time bidding.<\/p>\n\n\n\n SSP is programmatic software for publishers (suppliers) that aids in the sales of their advertising<\/a> impressions. <\/p>\n\n\n\n It connects the suppliers with demand-side platforms, different ad exchanges, <\/a>and ad networks<\/a> and exhibits impressions to a greater pool of potential customers for sale.<\/p>\n\n\n\n In this way, it allows suppliers to set the best bidding range and thus maximize the revenue. <\/p>\n\n\n\n DSP<\/a> is programmatic software for advertisers. It helps them buy automated and centralized media from different reliable sources. <\/p>\n\n\n\n When advertisers seek the right inventory for their ads, DSP helps explore and buy them to help reach the right audience at the right time at a cost-effective price. <\/p>\n\n\n\n When an advertiser wants to seal a deal with a publisher’s ad inventory<\/a>, the Ad Exchange facilitates them to transact. <\/p>\n\n\n\n Ad Exchange<\/a> is an online marketplace where entities from demand-side platforms, the advertisers, perform real-time bidding on multiple inventories from supply-side platforms, the publishers. <\/p>\n\n\n\n Apart from bidding, Ad Exchange helps advertisers gain visibility irrespective of where their ads will exhibit. <\/p>\n\n\n\n The working module of real-time bidding can be understood as follows:<\/p>\n\n\n\n 1. Sending the bid request<\/strong>– As a user visit a website, a bid request is sent on Ad Exchange. The bid contains information such as:<\/p>\n\n\n\n 2. Passing the bid<\/strong>– Now, the role of Ad Exchange comes to play. It passes the list of buyers or advertisers interested in the ad impression<\/a> along with their bid requests to the website user.<\/p>\n\n\n\n The buyer with the highest bidding wins the impression, and its ad gets placed in front of the site user. <\/p>\n\n\n\n 3. Repetition<\/strong>– This entire process repeats and is so fast that receiving the bid request and placing or serving the ad takes place within 100 milliseconds. <\/p>\n\n\n\n Thus real-time bidding creates an efficient advertising ecosystem in the online platform. <\/p>\n\n\n\n Real-time bidding is helpful for both publishers and advertisers in multiple ways. <\/p>\n\n\n\n 1. Better pricing<\/strong>– Since the highest bid amount delivers the impression, publishers get more revenue for their inventory. Using supply-side platforms, a publisher makes the most out of real-time bidding. <\/p>\n\n\n\n 2. Increased value of remnant inventory<\/strong>– Monetizing as much inventory as possible is the aim of every publisher. With real-time bidding, inventory that was once considered unworthy or non-monetized can be used by advertisers based on their target audience. <\/p>\n\n\n\n Many publishers reported that real-time bidding also helps increase the value of their remnant inventory. <\/p>\n\n\n\n![\"What](\"https:\/\/prioridata.com\/wp-content\/uploads\/2023\/03\/What-is-Real-time-bidding-1024x576.png\")
<\/figure>\n\n\n\nHow does real-time bidding work?<\/strong><\/h2>\n\n\n\n
Supple Side Platforms (SSP)<\/strong><\/h3>\n\n\n\n
Demand Side Platform (DSP)<\/strong><\/h3>\n\n\n\n
Ad Exchange <\/strong><\/h3>\n\n\n\n
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Benefits of Real-Time Bidding<\/strong><\/h2>\n\n\n\n
Benefits for Publishers<\/strong><\/h3>\n\n\n\n