The Howdy Glossary

Real-time bidding (RTB) is a programmatic auction process used in online advertising to buy ad inventory, enabling advertisers to bid in real time on ad space. The highest bidder's ad is showcased to the audience within milliseconds as a webpage loads, allowing for efficient and precise targeting based on demographic data and user behaviors. This individualized evaluation of each impression leads to improved performance measurements and return on investment compared to traditional methods. Advertisers use specialized algorithms and tracking technologies within Demand Side Platforms (DSPs) for optimal results.

RTB was pioneered by Right Media, founded by Brian O'Kelley and Michael Rubenstein in 2003, creating the first online advertising exchange that allowed for real-time auctions of ad inventory. The success of this platform led to widespread adoption across the digital advertising industry, revolutionizing how online ad space is bought and sold. RTB automates the auction process, making it more efficient by ensuring ads are displayed to users who are most likely to engage with them which maximizes campaign effectiveness.

Key competitors in the RTB space include Google's DoubleClick Bid Manager, The Trade Desk, MediaMath, and AppNexus (now part of Xandr by AT&T). Each offers distinct features: Google's integration with its broad network provides vast reach; The Trade Desk excels in data targeting capabilities; MediaMath uses machine learning for optimization; AppNexus stands out with a strong programmatic infrastructure catering both buy-side and sell-side needs. These platforms allow advertisers flexibility based on specific goals within the digital advertising landscape while publishers use RTB technology to automate and optimize selling processes efficiently.