Converging Tech

Real-Time Bidding

What is it?
It’s an auction-based buying model for online ads that allows advertisers to bid on ad impressions in real time. The process usually occurs through a technology platform and can include demand-side platforms (DSP).

What does it do?
The idea is to increase efficiency on the buy-side of a transaction by allowing advertisers to purchase on an individual basis. Those operating in the space also underline its relevance for premium publishers by allowing them to maximise their inventory.

Why should you care?
As with DSPs, real-time bidding offers advertisers a path to greater efficiency. It also boosts transparency and the ability to adapt campaigns ‘on-the-fly’, thereby enhancing return-on-investment. Google recently recognised the growing value that real-time bidding offers by buying AdMeld.

What’s the potential?
Despite its advantages, real-time bidding is still a small part of the online world, with AdMeld last year placing its value at around 4% of all online activity. However, 16% of all display activity is available in real-time bidding; expect this level to increase as the industry grows more confident with it.