Programmatic advertising and real-time bidding are important terms of the online advertising ecosystem and although they are sometimes used interchangeably, they are not identical.
Multiple advertisers can bid on any impression at any moment. Whoever offers the highest bid wins the auction, and their ad appears on the page.
Each tier of the auction possesses specific settings like the size of the ad spot and its exact platform attribution (a streaming service, website etc).
That being said, it’s hardly possible to imagine digital advertising without real-time bidding. Meanwhile, since Connected TV ads are a vital part of digital advertising, it seems crucial to find how to implement the RTB technology within the CTV environment.
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This happens through auctions on Ad Exchanges, where publishers offer their ad inventory and advertisers bid on them, with winners’ ads finally shown to the visiting user.
When taking a closer look at digital advertising features, the CTV environment emerges as a lucrative channel that works on RTB principle.
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While RTB is a powerful tool for streamlining ad purchasing, there are some potential drawbacks advertisers should be aware of:
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The primary distinction between an ad network and a DSP is that DSPs have the technology to determine the value of an individual impression in real time (less than cem milliseconds) based on what is known about a user's history.[16] Supply-side platforms[edit]
Real-time bidding processes happen almost any time we visit a webpage or a mobile app with the ads that we see being decided in less than cem milliseconds.
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Your DSP determines that the impression fits your parameters, so it places a bid in the exchange. If your offer meets the floor price, you win the auction, and your ad appears to the user. If not, the bid continues to the next buyer on the server.