RTB Advertising: Advantages and Challenges
Hey there! It’s Push.House here.
Automated auctions, instant deals, personalized ads — RTB advertising has completely shaken up the digital marketing world, promising advertisers maximum efficiency in their campaigns. But are these expectations truly justified, considering the bigger challenges lurking behind the technology?
Is RTB advertising really as good as it sounds? In this article, we’ll break down how this format works, its advantages and drawbacks, and how RTB fits into Push.House’s platform.
What is RTB Advertising?
RTB (Real Time Bidding) is a technology that allows the buying and selling of ad impressions through an online auction in real time. The process works in several stages:
- Auction launch: As soon as a user visits a website, their data (about the page, ad parameters, and user characteristics) is sent via the SSP (Sell-Side Platform) to the RTB auction.
- Advertisers bids: Through the DSP (Demand Side Platform), advertisers place bids for showing ads to a specific audience.
- Winner selection: The highest bid wins, but the cost of the impression is set by the “second-price” algorithm: the advertiser pays slightly more than the next highest bid.
- Instant ad placement: All of this happens in fractions of a second, ensuring that ads are shown to users almost instantly.
This approach allows for a highly automated ad placement process, ensuring that the ads shown are relevant to the end user.
Advantages of RTB Advertising
- High relevance and targeting: With advanced algorithms and vast amounts of user data, RTB allows advertisers to deliver notifications to the audience most likely to engage with their offer. This minimizes wasted budget on irrelevant impressions and increases conversion chances.
- Efficient budget spending: Budget is spent on clicks that bring the most value, improving ROI.
- Automation of the ad buying process: RTB automates click purchasing, eliminating manual negotiations and orders. This makes it easier to manage campaigns and adjust bids and strategies in real time.
- Transparency and detailed analytics: Instant data on where and when clicks occurred helps make informed decisions to optimize campaigns.
- Rapid scaling and flexibility: The RTB model allows campaigns to adapt quickly to current trends with minimal time investment.
Challenges of RTB Advertising
- Fraud risks: The automated RTB system is susceptible to fraud schemes, like click or impression inflation. Despite protective mechanisms, advertisers need to be aware of potential losses due to unreliable data.
- Challenges in measuring overall effectiveness: Since clicks happen across different platforms and devices, gathering a complete picture of an RTB campaign’s effectiveness can be tricky. This requires sophisticated analytics tools and cross-device tracking for accurate model attribution.
- High competition and price instability: In the auction model, bids can fluctuate significantly due to intense competition. This can increase the cost per impression, requiring constant monitoring and quick bid adjustments to avoid overspending.
RTB Auctions in Push.House
Push.House operates on a CPC model and uses a unique RTB algorithm that allows us to:
- Automatically determine the optimal cost per click.
- Display the most relevant ads to your target audience.
- Track changes in campaign stats in real time through an easy-to-use dashboard.
By using RTB technology, we ensure that your offer gets the attention it deserves through push notifications and other effective ad formats.
Conclusion
Despite some limitations, the advantages of RTB advertising make it one of the most effective tools for automated marketing. Thanks to Push.House’s unique RTB algorithm, we ensure:
- High relevance of ads.
- Optimization of cost per click.
- Instant adaptation of campaigns to market demand changes.
We invite you to experience the full benefits of RTB advertising with Push.House. Launch your campaign today and see for yourself how efficient, cost-effective, and easy our solution can be — because only your own experience will show just how great it is.
