What is the main feature of real-time bidding (RTB)?

The main feature of real-time bidding (RTB) is that it allows multiple buyers to bid on a single ad impression. This process occurs in real time, typically within milliseconds, as a user loads a webpage and an auction is held to determine which ad will be displayed. The dynamic nature of RTB enables advertisers to compete for impressions based on their budget, targeting criteria, and campaign goals, leading to more efficient ad spending.

This method contrasts sharply with static pricing models or fixed CPM agreements, where prices are predetermined and don’t involve competitive bidding. Additionally, RTB does not rely on pre-negotiated contracts for ad placements, as it operates within a more impulsive and flexible bidding environment. This competitive landscape is beneficial for advertisers, as it can lead to better targeting and potentially lower costs per impression.