What are the key components of RTB Advertising?

ORTB (OpenRTB) advertising, which stands for Open Real-Time Bidding, is a framework for programmatic advertising that allows for the automated buying and selling of ad inventory in real-time auctions. Key components of ORTB advertising include:

Ad Exchange: This is the platform where publishers and advertisers come together to buy and sell ad inventory in real-time auctions. Ad exchanges facilitate the transactions between these parties.

Bid Requests: Publishers send bid requests to the ad exchange when an ad opportunity is available (e.g., when a user loads a webpage). These requests contain information about the ad impression, such as the user's demographics, the content of the page, and the available ad slots.

Ad Inventory: Ad inventory refers to the available ad space on a publisher's website or app. It includes various types of ad units, such as display banners, video ads, and native ads.

Bidder: Advertisers and demand-side platforms (DSPs) use bidders to participate in real-time auctions. These bidders evaluate bid requests, determine the value of the impression, and submit bids accordingly.

Ad Creatives: Advertisers provide ad creatives (e.g., images, videos, copy) that will be displayed to users when their bid wins the auction. Different ad formats may require different types of creatives.

Auction: Real-time auctions occur when a bid request is received. Bidders submit their bids, and the highest bidder wins the auction. The winning bidder's ad creative is then displayed to the user.

Win Notification: After an auction, the winning bid is notified, and the ad creative is served to the user's device.

Data and Targeting: Advertisers often use data and targeting parameters to select which impressions to bid on. This may include user demographics, behavior, location, and more.

Ad Servers: Ad servers are responsible for delivering ad creatives to the user's device when their bid wins the auction.

Real-Time Analytics: ORTB advertising relies on real-time analytics to track the performance of ad campaigns and make adjustments as necessary.

Header Bidding: Header bidding is a technique where publishers offer their ad inventory to multiple ad exchanges simultaneously, allowing them to receive bids from multiple demand sources before making a decision. This can increase competition and potentially yield higher ad revenue for publishers.

ORTB advertising has revolutionized the digital advertising industry by making the buying and selling of ad inventory more efficient and data-driven. It allows advertisers to target specific audiences and optimize their ad spend in real-time.