The organization of online auctions on the advertising platforms

More and more marketers get interested in advertising platforms for automated advert
space trading. Read more about online auctions, their principles, and causes of popularity
Advertising platforms are special tools of programmatic marketing, which allow placing advertising
materials in a more effective and profitable way. Programmatic advertising is a vital part of any marketing strategy,
as modern users prefer using the Internet to know about brands, share their opinions, and buy. Real-time bidding
auctions are the most popular way of the application of programmatic advertising. They possess many advantages
for publishers and advertisers. Let’s look closer at RTB and its peculiarities.
The essence of RTB
Real-time bidding is one of the directions of programmatic, which presupposes the application of automation
of a purchasing process and the organization of real-time auctions. It is not the same as programmatic because
the latest does not necessarily work with real-time deals and auctions.
By means of RTB, it is possible to cooperate more effectively saving your time and money. Such a system
requires minimal involvement of human force, thus, providing transparency, high speed of work, and higher
efficiency. As for the other benefits offered by RTB platforms like to publishers and advertisers, we
can mention the following:
 low risks of fraud: the system works on the basis of individual impressions. The transactions are fully
 low investments. Compared to the traditional method of media buying, there is no need to organize
meetings, negotiate on prices and other conditions. Thus, you require experienced staff only for the control,
optimization, and creation of a good marketing strategy
 more revenue. Publishers can sell their advert space at more advantageous prices, while advertisers can
buy high-quality inventory at moderate prices. ROI rates from such type of advertising are proved to be the
 advanced targeting. Advertisers can target the audience they are exactly aimed at. Thanks to a big number
of features, it is possible to adjust days and time of advert displays
 high-quality adverts and inventory. If you use reliable advert exchanges, you will hardly have to deal with
inappropriate content or low-quality ad space.
The work of online auctions
RTB system contains three main parties:
 advert exchange.
An ad exchange is a mediator, which provides marketers with a useful platform for their cooperation. Taking
the information from SSPs and DSPs, the system organizes online auctions. It is possible to offer one or several
pieces of advert space. Online auctions work like traditional offline auctions. However, there is a constant data
collection going on. Thus, the users of advert exchanges get reliable information concerning advert materials, site
visitors, and space.
Publishers are sellers. They offer their inventory on the auction with a minimal cost set up by them.
Advertisers are buyers/bidders. They make bids on the suitable offers found by the system according to their
requirements. The highest bid is selected by the system, while the advert is delivered to a corresponding site and
the commission is charged.
Any online auction demands registration. Thus, it will be possible to track the positions you bid on/sell,
determine the winners/losers, build a feedback database, etc.
If your bid is the highest, you are obliged to pay and buy the inventory. After the auction ends, marketers
can discuss the delivery and payment options. In the case when there are no bids made or no bids higher than the
reserved cost, the auction closes without a winner.
Type of auctions
There exist 2 main kinds of online auctions:
 person-to-person (the merchants offer their items to buyers directly by means of auctions)
 business-to-person (they are characterized by physical control of the merchandise offered and acceptance
of payment for the products).
When the auction’s over, it is the publisher’s responsibility to deal with the winning bidder.
There are also certain rules for bidding:
 you have a limited amount of time to make a bid
 your bid should be higher than the previous one

 it is possible to pay less money than you bid (it is a frequent case when you pay an amount, which is just a
little bit more than the previous bid)
 you are to buy an advert inventory if you become a winning bidder.
On the definite resources, there are also automatic bidding options. For example, eBay offers automatic
bidding for a current high bidder in the list. Thus, the system is able to bid on behalf of that bidder against under-
bidders. The amount bidden is always minimal, so do not worry about spending too much money.
There are various payment options available for the users of auction platforms. Depending on a certain type
of resource, you can use:
 debit/credit cards
 cashier’s/personal checks
 escrow services
 cash, etc.