Define It - What Is Real-Time Bidding?

With the ecosystem providing insights on “programmatic buying” and “programmatic selling” last week, we reached out to a new group of executives to define one of the key underpinnings of programmatic media – whether display, mobile, social, etc. – and asked:

“What is Real-Time Bidding?”

Click below or scroll down for more:

Scott Spencer, Director of Product Management, Ad Exchange, Google

“Real time bidding (n); 1) A technology introduced in 2009 to make it easier for ad networks to buy only the inventory they want. 2) A common buzzword that is part of everyone’s business plan in 2013. 3) The act of buying digital inventory from multiple publishers on an impression by impression basis, typically involving an auction pricing mechanism. 4) One of the biggest opportunities for publishers to participate in new media spend, but not a panacea if done in isolation. (See “premium ad server”, “dynamic allocation”). 5) A big part of what inspires me and the editors at AdExchanger to come into the office every morning.

Synonyms: programmatic buying, informed purchasing, NASDAQ for ads

Example: Wow, the ad space I make available for real time bidding is crushing it!”

Paul Dolan, Managing Director North America, Xaxis (WPP)

“Real-Time Bidding (RTB) is the interface into an auction marketplace constructed on the foundation of Programmatic Buying & Selling.

Smart Advertisers leverage RTB as one of many ways to target audiences wherever they may be in the digital space.”

Jeff Green, CEO & Founder, The Trade Desk

“Real-Time Bidding means that every online ad impression can be evaluated, bought, and sold, all individually, and all instantaneously. It is the future of all online advertising and enables exchanges and buyers to work together to programmatically sell and place bids on ads. It allows every impression to be cost effective, and to be placed in front of the right person, at the right time. When using RTB, it is the buyer’s challenge to score every user on a variety of attributes, and place the right CPM bid and right creative in front of that user. RTB eliminates broad placement of ads and systemically allows each ad to be presented with intent behind it, based on available data to the buyer.

RTB is the center of the spot market for video, display, mobile, and social advertising today. And the RTB spot market is the foundation for the next generation forward market.”

Josh McFarland, CEO, TellApart

“RTB is like online shopping . . . at once a mere convenience and also a game changer. Did we shop before the internet? Yes. And yet now we have more options, shop more efficiently, can personalize our experiences, and yes – often find better prices. As a result, we shop more and the total commerce pie has expanded.

Now, offline stores are integrating the benefits of internet-connected shopping with mobile apps, real time inventory, and real world personalization. The lines are blurring into an incalculably better omnichannel experience for us all.

As with the advent of online commerce, so too will RTB prove to be the backbone of all future marketing efforts. With the backdrop of holiday feasts behind us, who can argue with expanding the pie?”

Read more: