As a result, header bidding allows publishers to maximize revenue by increasing competition for ad space, which raises the average bid price. If an advertiser wishes to buy high-priority impressions, they will need to pay more for it.
Here’s how they differ. In traditional RTB, the program evaluates bid requests from advertisers sequentially — if Buyer 1 doesn’t meet the floor price, the request moves on to Buyer 2, and so on, until the floor price is met.
RTB gives advertisers greater control over their campaigns, allowing them to get the most out of their ad spend. In the past, advertisers would target specific websites. Now, advertisers can fine-tune their targeting to specific users rather than casting a wide net of anyone visiting a web page.
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It’s important to note that advertisers don’t pay for each individual impression. Instead, publishers charge based on eCPM, or the cost per thousand impressions.
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The latter sends an ad request to DSPs and Ad Networks which, if deciding to bid on ad, send the bids with maximum bid value along with location of advertising content.
Because the RTB process is so technical, it can be confusing even for those with extensive experience in the advertising industry. Understanding what RTB is and how it works can help you optimize your advertising strategy and benefit your bottom line.
User privacy: RTB allows advertisers to home in on specific users, which read more has created concerns over the security of sensitive user data. Anonymous audience segmentation solutions like Emodo Audiences strengthen respect for user privacy without sacrificing targeting accuracy.