Mobile Advertising

Mobile Advertising

When one of those techies creates and launches a brand new free application onto the market, he, apparently, wants to monetize it. He does not even think about carrying traditional ads display channels, as up to 70% of his inventory is under risk to be unsold1 unless he has a professional sales team, which can properly sell his targeted app. An advertisement evolution generated one another technical solution, which allows publishers and advertisers gain and save more resources, when dealing with inventory selling and ad placement. Real-Time Bidding (RTB) refers to the means by which ad inventory is bought and sold on a per-impression basis via programmatic instantaneous auction, similar to financial markets. With real-time bidding, advertising buyers bid on an impression and, if the bid is won, the buyer’s ad is instantly displayed on the publisher’s site.2 This tool seems to be very promising in changing the face of online advertising, but there is still a lot of confusion, when thinking of how it works and what it does. There are three crucial parts in this mechanism: publisher (our gifted programmer), Ad Exchange and Demand Side Platform (DSP). Here is the most basic form of RTB process:

1. The publisher provides his inventory (app/website) to an Ad Exchange, which is responsible for an auction;

2. Ad Exchange will further display this inventory as an auction item so advertisers can see it on their DSPs and place bids on each ad impression;

3. The value of the bid is based on the value of that impression, as determined by the advertiser’s parameters with the DSP. The bidding process ensures that each impression is sold at the maximum price.

4. Once the bidding is completed, the winner is chosen and the ad is served on the publisher’s website.

The winning bidder’s ad is then loaded into the webpage nearly instantly; the whole process takes just milliseconds to complete.Originally, real-time bidding was only used...