The Future of Digital Advertising: Real Time Bidding

So what is Real Time Bidding?

Real time bidding often abbreviated to RTB (get the lingo!) is a method of selling and buying online display advertising in real time. It utilises sophisticated bid management software to automatically buy and sell ads in the real time with the use of impressions, context and behaviour. RTB targets the ad to a precisely targeted audience based on data about them. This dramatically increases the effectiveness of display advertising. RTB provides a great way of reaching a wide audience at a low click per minute (CPM) rate.

The ABC of RTB

Algorithms 
A function of well-defined calculations which provide data. This allows the human analysts to make informed decisions regarding their online advertising.

Big Data
The whole data set available to work with. This applies not just to in-house data, but describes the entire content available through third parties and other sources. Data is becoming increasingly more flexible enabling marketers to easily access and use their data via powerfull software interfaces. This in turn, provides them with relevant data to analyse in order to make decisions for programmatic buying around their target audience's behaviour and attitudes.

Client Programmatic Buying
Describes the total of the automated aspect of online display advertising - the range of booking, optimising and delivering advertising via algorithms and software interfaces.