vidasco media blog: Interactive Media

The Basics and Benefits of Real-Time Bidding

December 18, 2012
The Basics and Benefits of Real-Time Bidding

An advertising technology that is relatively new to the market is real-time bidding which enables those advertise online to purchase and serve their ads on the fly. This means that instead of advertisers paying in advance for a certain number of ads and reserving them ahead of time, advertisers bid on specific impressions as they are served up on the web. This is done in real time in a matter of less than 50 to 150 milliseconds. The bids for the ads are determined by the web site on which they are placed, where they are placed on the web site, the number of impressions for that bid and other various other criteria. The highest bidder for the impression gets the bid and the ad is served up on their page. A close analogy to this process is purchasing stocks on the stock market. When stocks, which would be analogous to online advertising pages, come up for sale, brokers, or advertisers, bid for the stock and the highest bidders is then awarded the stock or, in the real-time bidding case, the ad is served. This process runs on a continuous basis.

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