The prices are negotiated on a cost per thousand impressions, so the advertiser isn’t paying based on uptime or even dimensions. Instead, they’re paying for the amount of times, in thousands, that their ad is seen.
Unlike real-time bidding, which involves selling ad impressions through a single auction, header bidding opens the floor to multiple demand sources at once, potentially increasing revenue for publishers by creating more competition for their ad inventory.
Let's say Silk is a UK-based beauty brand that just launched a new brow line and is running a campaign. They set up their campaign on a Demand-Side Platform (DSP) and are targeting users who regularly shop for makeup products, are located in the Manchester area, and are between 18 to 30 years of age. The brand also wants its ads to only show on sites related to beauty and lifestyle.
Editor's note: This post was originally published in March 2021 and has been updated for comprehensiveness.
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Once an ad gets chosen, the website loads, and you see the winning ad on your screen. That’s a lot of complex steps in a short website period. I’ve never been to an auction that operated that quickly, for sure. Let’s put this into perspective.
At Emodo, we strive to provide smart solutions to empower both advertisers and publishers to maximize their investments, including the use of RTB to uplevel digital advertising from underperforming programmatic technology, providing an experience that is more meaningful to consumers, impactful for brands, and profitable for publishers.
In RTB programmatic, the RTB auction is the core process. It ensures that the highest bidder wins an ad impression on the publisher’s media. It's also called an open auction since any publisher and advertiser can participate in it. The platform that hosts open auctions is called RTB exchange or ad exchange. It communicates with supply-side platforms (SSPs) — software used by publishers, and demand-side platforms (DSPs) — software used by advertisers. From SSPs, ad exchanges collect data about impressions available for sale in the form of bid requests. From DSPs they solicit bid responses showing how much companies are willing to pay for their banner or video to appear on the suggested ad space.
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