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How Real-Time-Bidding works on Mobile

June 4th, 2012 by Talya

RTB graphic

You probably have heard a lot about Real-Time-Bidding (RTB) lately. It has been an important part of online advertising for some time now and has more recently become part of the mobile advertising landscape as well. Earlier this year, we added RTB technology to our platform to provide better, more highly optimized ad serving for our clients.

What exactly is RTB?

Real-Time-Bidding is technology that makes it possible to bid, purchase, and serve advertising automatically and nearly instantly. With Sponsormob, RTB technology gathers upon our data history, ensuring that ads are placed in the areas where they are most likely to be seen by the right customers. With RTB, ads are also bought on a large scale from various publishers, saving time and leading to better results for advertising spend.

How does Real-Time-Bidding work?

With Real-Time-Bidding on the publisher side, our technology is able to review, in a fraction of a second, several ads which would fit with an ad request. It then automatically bids and purchases the best ad for that space, placing the corresponding ad in that space almost immediately.

The graphic above gives an example of RTB in action. When an ad request is made, the technology behind RTB (called the ‘auction engine,’ for simplicity’s sake) reviews various ads, chooses the best one, and then purchases the space. The ad is then served in that space, resulting in highly targeted ad serving. As the graphic shows, the ads served through Real-Time-Bidding are not always the cheapest, but they are the ones that will prove to be the best-placed ads, resulting in cost-effective advertising on a performance basis.