Real-time bidding (RTB) is a digital ad-buying process enhancing tailored ads for consumers.
Real-time bidding (RTB) is an automated digital auction process that enables advertisers to buy and sell online advertisements in real-time. In this process, ad impressions are sold to the highest bidder in milliseconds, immediately as a page is about to load. It allows advertisers to manage and optimize their ads in real-time and adjust their strategy based on the ad's performance. RTB drastically reshapes the online advertising landscape by making each ad opportunity unique and individually valued.
For instance, when a user visits a website, the publisher auctions an ad space to advertisers through RTB. This auction takes place in milliseconds, and the highest bidder's ad gets displayed when the webpage loads.
Improving RTB performance primarily depends on:
RTB significantly influences several ecommerce metrics, such as cost per acquisition, return on ad spend, and overall conversion rates. A well-executed RTB strategy helps in acquiring high-quality users likely to convert, enhancing the ecommerce performance metrics.
Return on ad spend (ROAS) represents revenue earned per dollar spent on advertising.
Retention Rate is the percentage of customers a business manages to keep over a specified period.
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Repeat Customer Rate (RCR) is the percentage of customers who make a subsequent purchase from an online store.