Explore how Real-Time Bidding (RTB) can enhance your advertising strategy, with businesses investing 18.4% more in digital ads by 2032

Through Real-Time Bidding (RTB), advertisers can acquire ad space more dynamically, as they are allowed to bid on available ad space rather than waiting for a pre-planned advertising campaign. The ad space is put up for auction, and advertisers make their bids, with the highest bidder winning the ad space. Users are re-targeted with the ad immediately after the close of the winning auction. This whole process occurs within a fraction of a second and provides a new level of comfort which has not been provided by any form of advertisement till now.

Here, we shall go through different aspects of Real-Time Bidding and describe how it may meet the demands of your company.

How Real-Time Bidding Works

To make things easier, RTB follows a structured process:

1. User Accesses a Website or App: The user goes to a specific website or application which is available in an RTB platform. In such a case, a visitor triggers a page impression on which it is attempted to deliver an ad.
2. Ad Request Sent to the Exchange: Upon the reaching of this page, parameters such as the user and this impression will be forwarded to the ad exchange and here the bid processing will begin.
3. Automated Auction: The advertisers are given instant access to and potential bidding of the ad spaces available, thus the ad for auction is made in real time. In a split second, the bids will come in from different advertisers for the advertisement placement.
4. Highest Bid Wins: Soon after making a bid, the winning bidder gets their ad displayed to the viewer.
5. Ad Display: The ad is presented to the viewer in such a way that no one is conscious of any promotion activity which ensures the advertisers get value for their expenditure and the end consumer satisfaction.

The Growth of Real-Time Bidding

The market for Real-Time Bidding has witnessed significant advancement. In 2023, it was estimated that this market was at USD 16.3 billion and would rise to USD 74.4 billion in 2032 at a CAGR of 18.4%. There are a number of contributors to this growth:

• Increased Digital Ad Spend: There is an increase in the budget allocated towards digital advertisements such that RTB becomes an effective strategy to optimize the advertisement expenditure.
• Mobile and 5G Growth: As more people access the internet via mobile devices (over 5.3 billion users in 2023), RTB allows businesses to dynamically bid for mobile ad spaces, ensuring they reach their target audience.
• Government Support: Initiatives like the EU’s Digital Strategy and India’s Digital India program have helped expand digital infrastructure, supporting RTB adoption and increasing demand for automated ad purchases.

How Real-Time Bidding Can Help Your Business

1. Cost Efficiencies: RTB provides value addition as advertisers can choose to bid only on ad impressions that constitute their target audience. The ad purchase process becomes less of a hassle and cost-effective, as many of the manual activities have been cut off.
2. Enhanced Targeting: RTB streamlines the process of ad targeting with the use of sophisticated algorithms, AI, and machine learning. It makes it possible to focus on certain consumers or geographic areas based on various parameters such as communication coverage areas, user behavior on the internet, and kinds of gadgets used for surfing the net.
3. Quick Change of Strategies: Sandwiched between traditional advertising modes, RTB significantly helps advertisers change their advertising approach in the middle of the campaign when the targets are not met. When an advertisement proves to be effective in prompting viewers/prospects to click on it, more resources can be allocated to that ad immediately (say $1 per click onward). Non-performing ads can either be changed or done away with completely.
4. Access to High-Quality Inventory: RTB enables firms to acquire high-quality advertising space that would have been hard to access through direct buying. This includes prime positions for advertisements on the most visited websites and applications, thereby increasing the chances of the ads being seen.
5. Greater Transparency: The intricacies that come with RTB include numerous metrics on advertisement performance, which in turn improve advertisement targeting by means of click-through rates and conversion rates.

The Role of Mobile in RTB

The introduction of mobile devices to the RTB market has increased substantially, especially as mobile internet penetration expands. On average, a user spent 4.6 hours a day using mobile applications in 2023, most of it on app-based social networking and gaming. Such platforms help advertisers by providing RTB capabilities that allow focused ad targeting.

For instance, India’s mobile internet use increased by 25% in 2023, driven by initiatives such as the BharatNet project. The same trend of increased usage of mobile internet will further stimulate RTB, as this enables businesses to reach out to more users in real time.

In Conclusion

Real-Time Bidding is a bonanza for businesses seeking to streamline their digital advertising activities more profitably. RTB is fulfilling its aim of addressing the target audience of businesses due to the high efficiency and low cost of its implementation. Trends in mobile phone growth, coupled with advancements in artificial intelligence, will only add to the usage of RTB, making it an indispensable tool for businesses in this digital era.

Whether you’re a small business or a large multinational conglomerate, adopting RTB allows you to make full use of your ad budget as well as target your ads more accurately and when you need them the most. Connect with us and get a detailed report.