Real Time Bidding (RTB)
Automated auction process in which ad slots are sold in real time for each individual impression call.
Also known as: RTB, Real time auction, Programmatic bidding
Real time bidding is the foundation of modern programmatic advertising. Ad slots are no longer bought in bulk but auctioned off per single page view. Within milliseconds the system decides which ad is served at which price.
How an auction runs
As soon as a page or an app loads, the seller sends a request to a supply side platform. That platform forwards the request along with context and anonymised user signals to several demand side platforms. Each platform calculates a bid, the highest bidder wins the slot, and the ad is delivered. The whole process completes in under a hundred milliseconds.
What makes RTB strong and what makes it tricky
The benefit is fine grained control per impression: you only pay for views that match your criteria. The downside is complexity, because every auction comes with ad server costs, data costs and potential brand safety risks. Clean frequency caps, white lists and a clear goal per campaign are the most important levers so the budget does not vanish into irrelevant slots.
Practical relevance in media buying
In the media buying of the JD suite, RTB plays a role when display campaigns are added alongside email campaigns. Sound targeting still matters: those who bring their own first party data into the auction reach relevant recipients at better conditions instead of paying for spread loss on the open market.