What is RTB Programmatic and How Can I Use It?

The Upside of RTB Programmatic advertising essentially refers to the automatic buying and selling of digital ad space using technology platforms. This method allows brands to reach targeted audiences more effectively and at a larger scale. It also enables publishers to monetize their content more efficiently and boost revenue.

This is a significant evolution from traditional Ad purchasing, which was typically done manually and involved one-to-one transactions — a process that was time-consuming and resource-intensive. In contrast, programmatic advertising uses technology to optimize campaigns and budgets in real time, delivering more personalized ad experiences across platforms.

Real-time bidding (RTB) was initially introduced in the early 2000s by Brian O’Kelley at Right Media. After understanding the challenges brands faced in securing large-scale deals with digital publishers, O’Kelley knew automation was the answer.

Must read – https://advertising.amazon.com/library/guides/real-time-bidding

With the establishment of RTB, the landscape of programmatic advertising changed forever.

As the domain of programmatic advertising continues to expand — with expenditures reaching $96 billion in 2021 — RTB remains a key strategy for both brands and publishers. The programmatic advertising market size is expected to grow to $19.12 billion in 2027. Wow! Many recognize that for launching a variety of data-driven campaigns in secure, brand-compatible environments, RTB is a top choice.

In this guide, I will enhance your understanding of RTB programmatic buying by exploring:

  • The Concept of Real-Time Bidding (RTB)
  • The Mechanics of Real-Time Bidding
  • Distinguishing RTB and Programmatic Direct
  • The Advantages of RTB
  • Defining Real-Time Bidding

So, what is RTB in the context of programmatic advertising?

Real-time bidding involves a virtual auction where advertisers bid for ad placements in real time. The bidding is typically done per thousand impressions (CPM). Advertisers with relevant offerings compete for inventory to reach the audience of publishers, and those with the highest CPMs secure the available slots.

How does RTB differ from programmatic advertising? RTB is simply one method to purchase programmatic ads. Programmatic ads can also be bought through:

  • Programmatic direct deals, established directly between individual publishers and advertisers
  • Programmatic guaranteed deals, which offer fixed impressions at a set price
  • Private marketplaces (PMPs), which are RTB auctions by invitation only

Although RTB is not the only solution for programmatic advertising, it is one of the most favored due to its cost-effectiveness and scalability across various publisher properties.

Comparison of Programmatic Advertising Methods

MethodDescriptionProsCons
RTBVirtual auctions where advertisers bid for ad placements in real timeCost-effective, scalable, precise targetingLess premium placements compared to Programmatic Direct
Programmatic DirectDeals negotiated directly between an individual publisher and advertiserHigh-quality, premium ad placementsLess scalable, potentially more expensive
Programmatic GuaranteedOffers guaranteed impressions at a fixed priceGuaranteed impressions, predictable costsLess flexibility, potentially higher costs
Private Marketplaces (PMPs)Invitation-only RTB auctionsExclusive access to premium inventoryLimited scope, potentially higher costs

Understanding How Real-Time Bidding Works

RTB programmatic advertising operates using a key set of technology platforms, including:

  • Demand-side platform (DSP): A type of software used by brands to buy programmatic ad units from publishers.
  • Supply-side platform (SSP): A software used by publishers to sell programmatic ad units to advertisers.
  • Ad exchange: A platform that connects the DSP and SSP, where the actual programmatic transaction takes place.

Here’s a step-by-step breakdown of how an advertiser might engage in the RTB media buying process:

  • The advertiser uploads their campaign creatives and customer data to their DSP.
  • The advertiser sets its CPMs based on its budget and campaign objectives.
  • A reader lands on a publisher’s webpage that hosts an ad unit that needs to be populated.
  • The ad exchange initiates a programmatic real-time bidding auction to fill the ad unit.
  • The ad exchange aligns the data from the advertiser’s DSP with the data from the publisher’s SSP to identify the most suitable placement for the reader.
  • The advertiser with the highest bid wins the ad unit. Their creative is sent to the publisher’s SSP and displayed to the reader — all in a split second.

Differentiating RTB and Programmatic Direct

When exploring real-time auctions, many advertisers might ponder, “How does RTB differ from programmatic direct?”

Programmatic direct, like RTB, is a type of programmatic ad buying. The main difference is that programmatic direct deals are negotiated directly between a publisher and an advertiser. While it’s not a form of traditional advertising, the ads are distributed programmatically through the aforementioned platforms, not manually.

In contrast, RTB operates on a much larger scale, with potentially thousands of advertisers competing for a single publisher ad unit at any given moment. For this reason, RTB tends to be more affordable and easier to implement, but programmatic direct can yield more high-quality, premium ad placements and collaborations.

The Benefits of RTB

RTB programmatic advertising offers several advantages for brands aiming to broaden their reach and optimize their budgets.

The primary benefits of RTB media buying include:

  • Scalability: RTB allows advertisers to execute potentially thousands of campaigns in real time from a single platform: their DSP.
  • Expanded reach: Advertisers can use RTB to automatically place ads across a variety of publisher properties without having to manually oversee the process.
  • Cost-effectiveness: As advertisers can set their CPM bids, they ensure they never overpay for ad inventory.
  • Precision targeting: Ad exchanges utilize customer data from publishers and advertisers to instantly identify the right audience for each campaign.

RTB and programmatic advertising will continue to provide new avenues for advertisers to boost awareness, consideration, and conversions. As reported by eMarketer, programmatic display ad spending grew 29% from 2020 to 2021, and it will soon represent over 90% of all digital display ad spending — an all-time high.

What’s the Difference Between RTB, PMPs and Programmatic Direct?

Understanding programmatic advertising can indeed be a complex task. Thus, we aim to clarify the distinctions among the three primary forms of programmatic advertising: Real-time Bidding, Private Marketplace, and Programmatic Direct.

How does real-time bidding work?

Real-Time Bidding is an automated auction process, allowing advertisers to compete for the opportunity to deliver personalized ads to their target consumers.

These ads are created based on a user’s browser cookies, reflecting their online history. This enables advertisers to more accurately target audiences who have shown interest in their offerings.

In making these bidding decisions, advertisers employ technology that merges data about the webpage and the user. Factors such as the webpage’s URL, its content category, the ad space location, and the user’s browser cookies all contribute to the determination of an ad’s value to the advertiser.

While Real-time bidding tends to be the most budget-friendly type of programmatic advertising, it provides the least amount of precision for both publishers and advertisers. Despite this, RTB is the largest form of programmatic advertising, serving billions of impressions daily. The majority of programmatic purchases occur here, given the vast number of advertisers vying for RTB inventory.

How do PMPs work?

Private Marketplace, or PMP, refers to an exclusive real-time bidding auction where one or several publishers invite a select group of advertisers to purchase their inventory.

In PMP deals, the advertiser eliminates intermediaries, bypassing exchanges and server-side platforms entirely. Advertisers can access premium sites at lower costs compared to programmatic direct, with the certainty of knowing exactly where their ads will be displayed.

Typically, PMPs are administered with an Insertion Order (IO), a contract detailing the inventory’s price and the ad’s duration.

Unlike fixed CPM models, the Cost per Mille (CPM) in PMPs is usually variable, meaning the advertisers don’t pre-agree on a CPM rate.

PMPs and Programmatic Direct each offer distinct benefits for publishers and buyers. Publishers gain better insight into who is serving ads on their sites, and they can command higher prices for their space. However, to justify the increased cost, buyers seek privileged access to the supply. Essentially, they aim to reach their target audience ahead of their competitors.

How does programmatic direct work?

Programmatic direct is slightly different to PMP deals. Programmatic Direct is direct-sold, guaranteed inventory, that unlike PMP deals doesn’t require human intervention to run.

However, Programmatic Direct is actually a more manual process than PMP deals.

This is because deals are made on an individual basis, where a publisher’s sales rep negotiates the arrangement with the advertiser on a one-to-one basis.

With Programmatic Direct, the advertiser purchases a fixed CPM, meaning the advertiser agrees to paid a predetermined CPM.

Programmatic Direct is a good choice for brands focused on brand safety, as the relationship is one-to-one and the brands know exactly where their ads will appear.

A metaphor for understanding the difference between RTB, PMPs and programmatic direct

So to summarize, here’s a way to conceptualize the flow from Open RTB to PMP to direct.

The open market (RTB) has thousands of advertisers and millions of sites in it. When buyers are looking for very specific people, that’s difficult. Think of a huge farmer’s market with thousands of farmers and thousands of buyers, and you’re a buyer looking for the perfect apples. You know you’re looking for big, green, organic, and ripe. You can find a good one, but the odds of you actually finding the perfect apple aren’t great.

So now you can pay extra to go into the VIP area where only the best apple farmers are, but the cheapest apple is $5. You can now find the apple you want, but you’re still competing with all the other buyers to find the one you want. At least your odds are better. This is equivalent to PMPs.

But you really want this perfect apple, and you know which farmer has it. He says he will give you the perfect apple for $10, but he will deliver it to your house and skip the farmer’s market and price haggling altogether. This is how programmatic direct works.

Advantages of Real-Time Bidding

For Advertisers: Real-time bidding (RTB) enables advertisers to make purchases more quickly and efficiently. They can exercise greater control over their purchases, reducing the number of irrelevant ad impressions, displaying ads to a relevant audience, and minimizing the risk of ad fraud, making it a profitable endeavor.

For Publishers: Utilizing real-time bidding through a Supply Side Platform (SSP) can assist publishers in identifying suitable demand sources to work with, considering factors such as latency, unique demand, bid ratios, and ad space availability. This grants publishers control over their inventory, dictating which advertisers can purchase and at what price.

Easy Steps to Improve Your Ad Campaigns

Advertisement campaigns are paid communication tools used by brands worldwide to increase exposure, awareness, and visibility and jump-start the interest and desire of potential customers.

Every business is doing it today because they can get the word out about their products and services. All companies do this in a bid to get their cut of the over 3.5 billion interactions that occur on the internet every day.

But unfortunately, this also means it is easy to get lost in a sea of ads, except you constantly improve upon your campaigns.

And while ad improvement is now an essential step in dominating your niche and market, the steps are not very difficult.

Below we consider some easy steps and tips you can follow to improve your ads and help them perform optimally.

Why Online Businesses Need To Always Work On Developing Their Ad Campaign

Because more and more businesses are pumping out campaigns every day, brands that overlook this crucial step often end up with underperforming campaigns.

Below are some solid reasons why digital brands must continue to work on their ad campaigns regularly:

Increasing Brand Visibility

Because ad campaigns account for the largest chunk of brand awareness and visibility, it is safe to assume that not working on it could reduce how visible your brand gets.

And working to improve every ad you send out will bring better results and increase your exposure to your target audience.

Improving Ad Efficiency

Creating ad campaigns is important, no doubt, but they can also quickly turn into wasted efforts.

For instance, creating ads with prior findings can leave you with an ad that absorbs too much time and money but yields minimal results.

Not improving the campaign can make the ad fail to keep up with current trends.

Therefore, you must always work on improvements to improve the overall results.

Attracting New Customers

While certain tricks and techniques are forever green, many of the strategies used in developing ads need to change occasionally.

This is important because new audiences are entering the market and internet now and then. And adjusting campaigns and aligning with times and seasons are the surest ways to capture the interest of these new audiences and turn them into paying customers.

Penetrating New Markets/ Launching New Products

One reason you also need to work on your campaigns is that selling is global. There is always an opportunity to break into a novel but profitable market or the chance to craft a new product or service.

Both instances will require a different approach than you were used to, and working on developing new ideas for a campaign is how you win every time.

Impactful Strategies Used for Improving Ad Campaigns

Like we said earlier, some strategies change over time while others remain evergreen for a long time. Below are some helpful steps and strategies you can use to improve your campaigns in an ever-changing market:

Tailoring High-Quality Copies

Most people only respond to ads that seem personalized. They sound as if the audience was being addressed directly. Such an ad hits a pain point and allows the audience to relate to what is being said.

Such ads are often well-tailored and crafted only after thorough research has been conducted to create the perfect buyer persona.

This way, you have a target in mind and craft the ad to speak to an actual person. This is a vital strategy to inculcate into your campaigns as it always seems to capture the listener’s attention effortlessly.

Audience Targeting

Another essential step to help your ads soar is to always have a target in mind. The target is usually the person the campaign is prepared for, and, in most cases, this is your ideal customer.

Putting this in place ensures that you are not simply creating ads for creating sake but with genuine intentions.

Performance Testing

Running an ad without proper testing is like driving a car without determining the capacity. In both cases, it fails.

Before pushing out a campaign, first requires that you test its performance. This process will enable you to see how the ad will run. It will also enable you to see how the ad will be placed and displayed.

This is very vital to prevent wasting valuable time and resources.

Competition Monitoring

Knowing what your competitors are doing is essential for running an ad campaign. 

But sadly, your competition will not be pleased with this; hence, you will need a tool like scraping APIs or proxies to help you do this successfully.

Another type of API known as SERP scraper API allows you to collect ad campaigns by different competitors from search engine pages. Here are a couple of suggestions to get you started. 

How Web Scraping Tools Can Help Out

All the steps and strategies employed in making better ad campaigns can be quickly done through web scraping. The tools used in web scraping are easy to use yet very sophisticated and will help to make the steps easier to carry out.

Using a SERP scraper API will help you monitor different ads on a SERP and collect relevant keywords. Together, these can help you devise and craft high-quality ads that surpass your competition and put you in front of your target customers.

Conclusion

Businesses need customers, regardless of their size and location. With customers, any brand would wither out and collapse.

Getting these customers can be done in several ways, including promoting and running ads. Some strategies can help make running ads easier, and you can use web scraping software such as a proxy or SERP scraper API to make the process more appealing.

Top Killer Google Ads Optimizations to Stretch Your Budget Further

In the ever-changing digital landscape of rising PPC costs and growing competition, maximizing the efficiency of your marketing budget has become more important than ever.

In this article, we’re going to go through how you could do so by using killer Google Ads Optimization tips that will help you boost your performance and stretch your budget even further.

It’s important to remember that relevance is key to Google Ads’ success. Ensure that you’re using the most relevant keywords and ad copy for your target audience. This will raise the quality score and lower your average cost per click. Furthermore, you’ll want to increase your landing page’s relevance to boost the CTR (cost-per-click) metric.

Viden is the only company that can optimize your Google Ads account for you with no setup time or high costs. A lot of big companies in Europe and USA trust these guys. And they also have a high rating as a Facebook Ad Agency in the Clutch catalog.

Main Tips

The first thing you should do is review your ad’s keywords. Relying on their historical performance, you could consider what match types you’re using, which of them bring in more value, and the most relevant search terms  – this way, you have a better understanding of which keywords you should be focusing on moving forward. Also, analyze how your keywords are organized within your ad groups and if the structure could be improved to adhere to Google Ads’ best practices. Building a strong account structure is a crucial element of maximizing your efficiency across the platform.

Alternatively, you could turn to the keyword optimization tool that Google offers, which can help you determine what type of keywords you should be targeting. Then, you’ll need to tweak your ad’s messaging and targeting, focusing on creating effective ads, tailored to your audiences and keywords. By doing this, you could significantly improve your efficiency at no additional cost.

Another way to improve your campaigns’ performance is to use and regularly update negative keywords. This will allow you to avoid showing ads on irrelevant search terms and help you focus your budget on more valuable clicks. As you learn about Google Ads’ best practices, eventually you’ll be able to spend more on profitable keywords with better results.

The next killer Google Ads Optimization tip is to optimize your ad’s position. Make sure you get a high ranking for your ad’s position. If you want to save more money, you should try to make it as effective and relevant as you can. Since the average ad position is no longer available, you might want to test this way of improving your ad’s visibility.

Campaign Management & Best Practices

Regular optimizations are as important as major changes in your Google Ads’ strategy. As previously mentioned, using negative keywords is a great way to maximize your ROAS (return on ad spend) and increase your conversion rate by filtering out the audiences that are a poor fit for your business. You should also make sure that your keyword list and ad copy are optimized for the language people use across search engines. This will make your ad more relevant to your audience and will help you boost your click-through rates. It’s important to note that you can easily improve your ad’s quality by widely using keywords or keyword insertion in headlines or descriptions.

Another good strategy is to use specific, high-intent, or long-tailed keywords to target specific segments of your audience that are most likely to convert. By adding more precise terms and creating tightly-knit ad groups, you could considerably increase your conversion rates.

When making optimizations, you should also consider the location of your customers. By using location-based bid adjustments, you could cut the spending on underperforming countries, cities or regions, and relocate your budgets to more profitable audiences. As a rule, your business’ location tends to influence your conversion rates, so keep it in mind when you work on your marketing strategy.

The cost per click is another crucial factor to consider when making day-to-day adjustments in your Google Ads’ campaigns. You want to focus on the keywords and ads that deliver results at the best cost.

Utilizing your extensions to the fullest is another tip that can deliver great visibility to your ad and improve your click-through rates. This way, you can engage your audience without additional costs. 

Bottom line

Some of the main impactful Google Ads optimization areas include campaigns’ ad groups’ structure, keywords, and ads’ efficiency. To make the most of your budget, you might want to run a full audit of your account, determining its weakest and strongest areas as well as opportunities for improvement and growth. Test different strategies and optimizations, and find the approach that works for you!

How to optimize your Ad spend like a GURU?

Online marketing has become an amazingly powerful tool for startups and companies that need to grow quickly. You can run hundreds (or thousands) of different ad campaigns across dozens of platforms and use data to target the customer base you want and measuring every aspect of campaign performance.

Ad Spend Optimization

The biggest challenge in online marketing is how to optimize spend and get the most ROI. Of those thousands of campaigns, which are performing well? Which are costing you too much and you should stop them all together? Which ads are attracting the customers that go on to become your most loyal?

The right strategy to use at any given time is usually different one day to the next. And the cost of targeting customers online changes over time as well because there is such a huge competition in this industry. This means you should actively monitor your marketing every single day in order to make sure you are making good decisions, and maximising your chances of success. The data generated by all those campaigns can be overwhelming and it can be hard to know where to start.

Steps of optimize marketing spend

In this post we’ll review a few ways to apply data techniques that will allow you to optimize your campaigns. Specifically we will cover:

  • Part 1 — Benchmarking Performance
  • Part 2 — Anomaly Detection
  • Part 3 — Customer Value Prediction
  • Part 4 — Automation

Today, we will talk about how to measure your success. Before taking any further steps, you should first find out whether your business is doing well today.

5 Essential Steps to Successful Lead Ads

Lead ads are an easy and effective way for potential customers to reach out to you on Facebook and Instagram. In just a few clicks, your leads can complete your lead forms, and you can get accurate information to follow up with them.

Start getting new customers with lead ads in just 5 steps

  1. Target the right audience
  2. Set your bid and budget
  3. Select your text and images
  4. Create an effective lead form
  5. Follow up with your leads

 more about each of these tips and learn best practices for each step.

Thanks,
The Outsource IT Team

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