MVPD (Multichannel Video Programming Distributor)
by The MNTN Team
7 Min Read
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8 Min Read
It’s hard to believe that at one point—and not too long ago, either—ad inventory could only be bought or sold when two people picked up a phone to complete the transaction.
Today, ad impressions are sold and purchased at an astonishing rate and faster than the human brain can comprehend. Much of this revolution was kickstarted by computers and programmatic buying; today it’s driven further by a popular advertising technique known as real-time bidding (RTB).
But what is RTB and how does it work? How is it different from programmatic buying? And is it right for your brand? Below we walk through the details.
Real-time bidding (RTB) is an automated auction process where ad impressions are bought and sold instantly as a webpage or app loads. Advertisers bid in real time based on user data, ensuring highly relevant and efficient ad placements.
Header bidding is a type of RTB that lets publishers solicit bids from multiple advertisers before sending the request to an ad server, maximizing competition and revenue. Unlike traditional RTB, which runs a single auction per impression, header bidding creates a more competitive bidding environment.
Direct buying secures ad placements through upfront negotiations, guaranteeing inventory and fixed pricing. Unlike RTB’s dynamic, auction-based model, direct buying offers more control and predictability over where and how ads appear.
Real-time bidding (RTB) supercharges digital advertising by making campaigns faster, more efficient, and highly targeted. Here’s how it delivers results:
RTB enables advertisers to launch, pause, or adjust campaigns in real time based on performance data. This agility helps brands capitalize on trends and continuously optimize their strategies.
Marketers can control ad spend with precision, adjusting budgets on the fly to focus on high-performing audiences and placements. This flexibility ensures every dollar is spent where it drives the best results.
RTB connects advertisers to multiple ad exchanges and networks, significantly increasing exposure. This access helps brands engage with a wider, more relevant audience at scale.
By focusing on high-value impressions and optimizing bids in real time, RTB maximizes conversion rates. This efficiency leads to stronger campaign performance and a better return on ad spend.
RTB platforms provide real-time insights into ad placements, costs, and critical digital marketing metrics. This level of visibility empowers marketers to make data-driven decisions with confidence.
While RTB offers powerful advantages, it also presents some challenges that advertisers need to navigate carefully. Though, these vary by platform as we’ll discuss later in the article.
Without proper controls, ads can appear alongside low-quality or inappropriate content, putting brand reputation at risk. Advertisers must use premium inventory sources and implement strict brand safety measures to ensure quality placements.
RTB relies on extensive user data, making compliance with privacy laws like GDPR and CCPA a complex, ongoing task. Brands must stay proactive in data protection strategies to avoid legal and reputational risks.
Since RTB operates on an auction model, winning bids aren’t guaranteed, leading to fluctuations in ad exposure. Advertisers should balance RTB with direct deals or private marketplaces to ensure consistent reach.
Inaccurate or outdated audience data can lead to ineffective targeting and wasted ad spend. Using first-party data and AI-driven audience insights helps improve precision and campaign effectiveness.
Bidding delays can cause missed impressions, especially during high-traffic bidding windows. Partnering with high-speed, performance-focused platforms ensures ads are served efficiently and without disruption.
Again, real-time bidding revolutionizes the way digital ad spaces are bought and sold, leveraging technology for instantaneous auctions. Here’s a breakdown of the process:
This RTB process ensures that ad inventory is sold at the best possible price fairly and transparently, benefiting both publishers and advertisers by efficiently matching supply with demand.
RTB comes in two main formats, each designed to meet different campaign objectives and advertiser needs.
Open RTB operates as a public auction where any advertiser can bid on available inventory. While it offers wide-reaching access, it also comes with higher competition and less control over ad placement quality.
Private RTB is an exclusive, invite-only auction that gives select advertisers access to premium, brand-safe inventory. This approach ensures greater control over where ads appear, leading to higher-quality placements and stronger campaign performance.
RTB comes in several formats, each impacting how ad inventory is bought and sold. Here’s what you need to know:
To touch on this concept again, this advanced programmatic method lets multiple ad exchanges compete for inventory simultaneously, ensuring publishers get the highest possible bid before the ad server processes the request.
In this model, the highest bidder wins and pays exactly what they bid. Advertisers must strategically manage bids to stay competitive without overpaying for impressions.
Here, the highest bidder still wins, but they only pay slightly more than the second-highest bid instead of their full offer.
Because it’s a method and not a tool, RTB can be achieved on platforms including leading ad exchanges, DSPs, and SSPs. Because of this, finding an ideal platform depends on whether you’re acting as an advertiser or publisher. Examples of platforms include:
Advertisers:
Publishers:
Want the efficiency of RTB without the risks of low-quality inventory? MNTN’s platform uses AI-driven automation to optimize bids in real time while ensuring your ads only appear on premium streaming networks. That means better audience targeting, smarter spending, and full visibility into campaign performance.
Here’s what you get with MNTN Performance TV:
Take control of your RTB strategy with MNTN’s self-serve Connected TV advertising software—sign up today to get started.
The act of buying and selling ad inventory has made great strides over the last few years and will only make greater leaps as the CTV popularity boom continues. By embracing a powerful and comprehensive television advertising platform like MNTN Performance TV, your brand can experience all of the key benefits of real-time bidding—and be prepared to enjoy the powerful features of whatever comes next.
Discover how Performance TV delivers revenue, conversions and more through the power of Connected TV. Request a demo today to speak to an expert.