Real-Time Bidding (RTB)- Explained Properly


Published August 3, 2022

Let’s dive into what Real-Time Bidding (RTB) is. First in plain English, and then some exciting nuances that will help you make sense of the whole thing.

Real-time bidding (RTB) is a technology that helps advertisers reach their target audiences with highly relevant ads in real-time. It’s like a live auction, but instead of products and services being sold, it’s advertising spaces that are being sold to the highest bidder.

Advertisers can use RTB to determine who sees their ads and when they see them by using data about users’ online behavior. For example, if you’ve been searching for job openings on your phone all day, an advertiser may want to show you an ad for a new job opening at your favorite restaurant chain.

In this way, RTB allows advertisers to get the best return on investment (ROI) from their digital marketing campaigns by reaching users that are more likely to click on their ads or perform other actions that indicate interest in what they’re offering—all within milliseconds of seeing an ad knowing nothing about its content other than how much it costs per impression as well as some basic information about what kind of person might be interested in seeing it based off previous interactions with similar types of content like blog posts written by industry experts or articles published by reputable news organizations such as The Wall Street Journal or Forbes magazine.

In this article we are going to discuss:

  • What is RTB- Real-Time Bidding?
  • How does RTB work?
  • What are the benefits of using RTB?
  • Who can use RTB?
  • The Future of RTB
  • Conclusion

Introduction to RTB

RTB, or real-time bidding, is a way for advertisers to bid on the exact people they want to target in real-time. The technology is designed for ad inventory that isn’t sold through traditional means (directly from publishers) and allows advertisers to target users based on the information the publisher has about them.

This technology powers programmatic advertising, combining audience data with automated buying. RTB is new enough that some of its use cases are still being explored by digital marketers and advertisers alike. Below we’ll explore the basics of RTB – including how it works, who can use it, and some of its benefits and drawbacks – so you can decide if RTB fits into your marketing plan.

What is RTB- Real-Time Bidding?

RTB is a technology that helps advertisers reach their target audiences with highly relevant ads in real-time. In RTB, the value of an ad impression is calculated by:

  • Bid price (advertiser’s bid)
  • Quality score (how well an ad fits with a particular publisher’s audience and content)

Advertisers use their own data to create these scores and control what they’re willing to pay for an ad impression. When multiple advertisers bid on the same piece of inventory at the same time, this creates an auction in which publishers can pick who they want as their partner.

This means no more one-size-fits-all approach – each campaign can be optimized specifically for its target audience!

How does RTB work?

RTB works like this:

  • You, the advertiser, place a bid on ad space. This bid is accepted by the publisher (website).
  • When your ad is served or displayed to users, it’s done in real-time by bidding platforms.
  • Your website’s servers will serve the ad from its own inventory or from an external network like DoubleClick, Bid Manager, or Google Adwords.

What are the benefits of using RTB?

RTB is a great way to reach your target audience at the right time with the right message

You might be already familiar with the concept of broad-based ad buys, where you pay for ads that are shown to people who may or may not be interested in what you’re selling. With RTB advertisers can target specific audiences based on their browsing history and other data points like location and device type. This allows advertisers to get their message in front of those people who are more likely to convert.

In addition to being more effective than traditional display ads, RTB has another benefit- It allows advertisers to deliver different variations of an ad based on each consumer’s unique profile and interests, which can help boost click-through rates (CTR) by 50% or more.

This means that rather than having one static image or video playing on your site- and hoping that the potential customer will find it relevant enough- you will have multiple creatives running at once across various sites and apps owned by Google and other major digital publishers like Amazon.

Who can use RTB?

RTB allows buyers to bid on ad space in real-time. This means advertisers can optimize their advertising campaigns by buying the best inventory anytime. Publishers can also benefit from RTB since they can sell their ad space more efficiently and get more revenue for it.

What’s the future of RTB?

As the industry continues to evolve, RTB will become more automated and data-driven. This means the advertisers will be able to reach their target audience with a high level of accuracy, as well as make decisions based on real-time data.

As these tools become more advanced it will be easier for marketers and advertisers to reach their audience by using precise targeting criteria such as location or by making use of other factors such as weather forecasts and cultural events. This means they will be able to target the right people at exactly the right time with relevant ads and messages- which will ultimately lead to more sales!


RTB or the entire programmatic industry is relatively new. There are a lot of evolutions yet to happen and we still have to see the full power of these technologies. We have gone through a well-detailed explanation of RTB in this article. But there are multiple ways to connect with your audience. In business and marketing, there’s no such thing as a one-size-fits-all approach.

If you’re looking for more information on RTB or want to incorporate the superpowers of programmatic advertising, then subscribe to our blog and feel free to connect with Datawrkz. We will help you make sense of the ad-tech maze and offer you the most effective solutions to your problems. Whether you’re a publisher looking to monetize your space, or an advertiser/brand wanting to sell your products and services to the best possible audience. Datawrkz’s expertise can guide you and offer the best solutions for your business.

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