Real-Time Bidding (RTB), also known as an open auction, allows ad spaces to be bought and sold through real-time auctions. Transactions occur while an app or web page is loading, typically taking approximately 200 milliseconds.
How Does RTB Work?
When a user enters an app or web page that incorporates a programmatic advertising setup, an auction begins for interested advertisers to bid on ad space. This bidding process is also referred to as an ad impression auction because advertisers indirectly bid on the user’s impression.
An advertiser enters an auction when a user landing on an app page falls within their target market. Multiple advertisers compete for the ad space and the user’s impression, and the advertiser with the highest bid wins the auction. As a result, their ad appears in the designated ad space. The winner is determined while the page loads for the user, thanks to a fully automated auction that takes place in just a few milliseconds.