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In between the advertiser and the publisher is the ad exchange.  You can think of the ad exchange like a market with vendors and buyers.

RTB with its precise targeting has made online advertising more efficient for publishers as well as advertisers. It helps advertisers achieve better ROI on their marketing budgets, whereas through monetization of remnant ad inventory it contributes to higher revenues of publishers. These are just two of the many benefits of RTB for the online advertising ecosystem.

User privacy: RTB allows advertisers to home in on specific users, which has created concerns over the security of sensitive user data. Anonymous audience segmentation solutions like Emodo Audiences strengthen respect for user privacy without sacrificing targeting accuracy.

Impressions: Impressions refers to the number of times an ad is seen or scrolled past. In the real-time bidding process, advertisers don’t pay for one individual impression, but rather the cost per thousand impressions (CPM).

If the advertiser has the highest bid in the auction, their ad is displayed on a publisher’s website or mobile app.

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Increasing ROI: When using a DSP to access ad exchanges, advertisers can adjust their settings to home in on the most relevant inventory for them, cutting down on wasted ad impressions and maximizing conversions.

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The real-time bidding process starts when a visitor opens a get more info publisher’s website. The whole process takes less than cem milliseconds, but a lot happens during that time: A site sends an ad request to an SSP when there’s a chance to show an ad to a visitor. The SSP collects the data about the visitor (cookies, location, etc.) and the ad space to pass it on to an ad exchange. The ad exchange broadcasts the information about this ad opportunity to several DSPs.

As a result, header bidding allows publishers to maximize revenue by increasing competition for ad space, which raises the average bid price. If an advertiser wishes to buy high-priority impressions, they will need to pay more for it.

Ad exchanges: An ad exchange is a digital network that connects advertisers or DSPs with publishers or SSPs. The ad exchange is where real-time bidding takes place.

Demand-side platforms play a similar role for advertisers as SSPs do for publishers. They are automation tools which allow advertisers to effectively manage, analyse, optimize and run their advertising campaigns over many different networks.

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