oRTB. How This Mindblowing Framework Changes The Game
Programmatic advertising has been around for some time. It’s quite straightforward—an advertiser buys available ad placements for a fixed price from an app/website owner. Anything that includes selling ad placements automatically through software is programmatic advertising.
But what happens when there's no direct offer? Publishers still want to make money on ads, right? And brands still want to promote their products. That's where oRTB, or Open Real Time Bidding, kicks in.
Simply put, oRTB is a framework that allows publishers to sell any available ad inventory on an auction in real time. This framework works by a system that involves several actors that are part of either supply or demand.
Supply are:
Publishers - any app, or website where an ad can be displayed;
SSPs - Supply Side Platforms that are connected to a lot of publishers
Ad Exchanges - platforms that accumulate SSPs and publishers
And demand actors are:
Advertisers - brands and agencies that want to show their ads
DSPs - Demand Side Platforms that work with many advertisers and help them target apps they want.
So, what does an oRTB cycle look like? A user visits a webpage that should contain an ad, and that’s when an ad request is created. Momentarily, the publisher sends this ad request, which also contains user data, to an SSP that redirects this request to all available demand that will bid on this request on the auction.
On the other side, we have demand. Advertisers set up their ad campaigns with all targeting details on a DSP. When DSP receives a request from an SSP, it compares the requirements from an advertiser with data that came in the request. If DSP sees this request as beneficial, it bids. A response with a bid is sent to an SSP/Ad Exchange, and an auction between many DSPs occurs. Response with an ad with the highest bidding price wins the auction and the ad is displayed.
The best part? All these steps take less than a second! Ideally, 1/10 of a second. And oRTB enables this whole selling process in very high volumes, quickly and effectively. So, what does it mean for us?
oRTB gives a chance to automatically sell billions and billions of ad placements daily. The connection between brand and user is simplified and can be managed through the actors we’ve mentioned. Publishers sell ad placements without any problem, and advertisers reach the audiences they need across all the available channels.
You may be wondering how anyone is making money in oRTB? Or what's the purpose of each actor? Publishers want to make money on ads, so they get paid whenever an ad is displayed. SSPs and Ad Exchanges have technical possibilities to connect publishers to a lot of demand and they take a percentage out of the end price. DSPs on their side help advertisers set up campaigns and find relevant supply—getting paid by an advertiser.
The bottomline? Mobfox is an industry leader in oRTB… So, contact us today and we'll happily take care of the rest!
