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What is real-time bidding?

Real-time bidding is a form of programmatic buying or realtime bidding falls under the umbrella of programmatic media purchasing. 

It involves the real-time buying/selling of advertisements on a per-impression basis through instantaneous auctions. Typically, this RTB in advertising process is facilitated by supply-side bidding platforms (SSP) or rtb ad exchanges.

An SSP, or supply-side platform, is software designed to enable publishers to automatically and instantly sell display, mobile, and video advertising impressions to prospective buyers. This covers ad exchanges/networks/demand-side rtb platforms (DSPs), providing publishers with enhanced control over their ad listings and CPMs (cost-per-thousand impressions). 

What is the functioning mechanism of real-time bidding?

  1. In any instance, several advertisers have the opportunity to bid on a singular impression from a publisher’s inventory, and the ad with the highest bid is presented to the user as the winner. 
  2. Real bidding time enables advertisers to implement precise targeting, concentrating on inventory that aligns closely with their preferences. 
  3. This refined targeting contributes to improved Return on Investment (ROI) and elevated effective Cost Per Mille (eCPMs). 
  4. RTB marketing empowers advertisers to dynamically modify their campaign budgets in real-time for optimal campaign performance. 

Consider a scenario in a mobile game when a player views an ad between game levels. During this moment, the mobile SSP initiates an auction for all advertisers eager to display an ad to that player. Advertisers submit their bids, and in an instant, the highest bidder is selected. Subsequently, the player is presented with an advertisement from the winning bidder. 

Publishers/advertisers have the ability to establish RTB advertising parameters, including setting minimum prices and maximum bids. Additionally, they can prioritize particular deals and inventory within the real-time bidding process. 

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Real-time bidding benefits 

RTB in marketing holds significance for both publishers and advertisers due to several key advantages. 


1.Optimized revenue 

RTBs enables publishers to maximize revenue by auctioning ad impressions in real-time, ensuring that each impression fetches the highest possible price. 

2.Efficient inventory management 

Publishers gain better control over their inventory, allowing them to manage and allocate ad space more efficiently. 

3.Monetization of unsold inventory 

RTB provides an avenue for publishers to monetize unsold inventory by offering it to the highest bidder in real-time. 

4.Dynamic pricing 

Real-time bidding allows publishers to dynamically adjust pricing based on demand, optimizing their ad space value. 


1.Precise targeting 

Advertisers can leverage RTB to target specific audiences with precision, ensuring that their ads reach the most relevant users. 

2.Cost efficiency 

RTB allows advertisers to bid on impressions based on their value, promoting cost efficiency as they only pay for impressions that align with their targeting criteria. 

3.Flexibility and control 

Advertisers have the flexibility to adjust campaign parameters in real-time, optimizing the budget allocation and improving overall campaign performance. 

4.Real-time insights 

Real-time bidding provides advertisers with immediate insights into the performance of their campaigns, allowing for quick adjustments and optimization. 

5.Enhanced campaign ROI 

The ability to target specific audiences and adjust strategies on the fly contributes to a higher return on investment (ROI) for advertisers. 

Ultimately, real-time bidding serves as a dynamic and efficient marketplace. It benefits publishers through revenue optimization and inventory management while providing advertisers with narrow targeting, cost efficiency, and real-time control over their marketing campaigns. 

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Real-time bidding and NextGrowthLabs (NGL) 

NGL stands out as the primary RTB ad exchange for mobile in-app advertising, linking buyers with thousands of mobile apps across a vast array of devices worldwide.  

We collaborate with numerous prominent DSPs, offering advertisers, agencies, and agency trading desks (ATDs) extensive access to a substantial inventory.  

Within the NGL auction framework, top-notch inventory is acquired on a per-impression basis. Through in-app SDK integration, buyers secure direct entry into highly competitive auctions.