OpenRTB Benefits for Advertisers & Publishers

The emergence of omnichannel capabilities AdTech platforms and components is flourishing programmatic advertising in terms of industry growth and seamless ad transactions. To standardize and simplify the process, OpenRTB’s benefits and capabilities come into play perfectly, to make the entire process connected and unified.

Around late 2010, a pilot team of six companies represented OpenRTB for both the buyer side (demand side platform) and the seller side (supply side platform) in the digital advertising landscape. The very first version was developed to standardize communication for exchanges between programmatic parties. It further focused on real-time bidding and response protocol, which they achieved over time.

With the passing years, the IAB Tech Lab^[1] has continued to put its efforts into updating OpenRTB by releasing new versions of it with new specifications. The latest version is 2.6, released in April 2022. Key features added in the newer versions include support for programmatic connected TV (CTV) advertising, header bidding, billing, loss notifications, and more flexible ad podding structures.

Let’s explore together the key benefits of OpenRTB valued by advertisers and publishers.

Table of Contents:

• Why is OpenRTB Important?
• Benefits of Open RTB for Advertisers and Publishers
• Key Players in the OpenRTB Ecosystem
• Why Partner with Rishabh Software to Build or Integrate Your OpenRTB Platform?

In the midst of AdTech platform development and resale competition, OpenRTB has proven to be an unbeatable technology in the digital advertising landscape. Serving as the backbone of media transactions, OpenRTB integration streamlines ad buying and selling through standardized protocols. These enable the creation of a win-win situation for ad space buyers and sellers. Data-rich OpenRTB transactions enable precise targeting, standardized communication, and personalized user engagement. Moreover, it brings the four key pillars—scalability, flexibility, transparency, and efficiency—to revolutionize the digital advertising landscape.

OpenRTB is a standardized protocol that benefits the advertising landscape by automating interactions between DSP, SSP, and ad exchange platforms and ensuring each platform is involved throughout the process. Additionally, it makes real-time bidding platform in ad exchanges more efficient and scalable.

Benefits of Open RTB for Publishers

• Increases Efficiency: As a digital owner of an online space, monetizing with high revenue generation through sales requires a single-minded focus. However, with the integration of OpenRTB, the stress of manual sales and monetizing ad space is significantly reduced. One of the key advantages of OpenRTB is its capability to infuse automation, which has uplifted programmatic advertising with AI. It handles everything, from finding demand, sending requests to ad exchanges and ad networks deciding floor pricing, and more. This frees up the publisher and their team to focus more on their online platform.
• Revenue Optimization: OpenRTB facilitates real-time auctions and acts as a communication protocol. The established guidelines for automated media trading powered by RTB enable multiple advertisers to compete for ad space. On the other hand, publishers have a high likelihood of maximizing their revenue potential.
• Transparency and Superior Control: One of the key benefits of OpenRTB is it enables publishers to have a clear picture of data sharing with advertisers. Publishers can control their data sharing and set limitations to ensure more restricted access. OpenRTB also offers functionality to set bidding prices, providing control and transparency over content quality to maintain platform trustworthiness and authority and reduce spam rates. In addition to basic transparency, OpenRTB’s Ads.txt and Sellers.txt allow oversight and prevention of unauthorized sellers. The SupplyChain Object in OpenRTB clarifies intermediaries in ad buying, helping publishers understand data flow and identify partners.
• Scalability and Flexibility: OpenRTB enables publishers to connect & collaborate with a diverse range of platforms, such as ad exchanges, SSPs, and ad networks. OpenRTB also provides dynamic pricing, allowing the determination of prices for each ad impression in real-time. Meanwhile, the automated process of media trading enables publishers to scale their day-to-day operations and execute ad transactions efficiently.

Benefits of OpenRTB for Advertisers

• Efficiency through Automation: OpenRTB leverages APIs (Application Programming Interfaces) to empower seamless communication between DSPs (Demand-Side Platforms) used by advertisers and SSPs (Supply-Side Platforms) managing publisher inventory. These APIs automate processes, including sending bid requests containing targeting criteria and receiving real-time bid responses from SSPs. This eliminates the need for manual negotiations and saves advertisers time and effort.
• Reach Targeted Audience: Publishers can integrate OpenRTB tags into their online platforms (web apps, mobile apps, websites, etc.). These tags communicate or share details about their audience, including age, location, interests, and ad space information (size, format), using OpenRTB’s standardized data schema. Data science and analytics techniques are then applied within the DSPs ecosystem to programmatically target specific user segments through methods such as geo-targeting, behavioral targeting, and contextual targeting.
• Real-time Bidding: We all know OpenRTB is the only foundation for facilitating real-time bidding or online auctions in programmatic advertising. It is also credited with significantly streamlining the RTB process more than ever before. For advertisers, it enables precise targeting, efficient and quick purchasing of ad inventory, transparent transactions, and seamless ad delivery through ad servers.
• Fraud Detection: OpenRTB supports strand targeting, a mechanism that allows DSPs to exclude specific IP addresses or device IDs known to be associated with fraudulent activity. This helps to protect advertisers from wasting their budget on invalid clicks and impressions.

The benefits of OpenRTB are possible to embrace due to the well-structured and inline functioning of the OpenRTB ecosystem. This includes many core components, flows, and actionable items to make it comprehensive. So, here are the primary players of the OpenRTB ecosystem:

• Demand Side Platform: This is operated by advertisers to participate in real-time auctions for ad inventory purchasing, set targeting criteria, manage ad campaigns, track ad campaign performance, and assess end results.
• Supply Side Platform: Publishers use SSPs to be a part of the entire OpenRTB ecosystem. This system connects publishers with ad exchange marketplaces to make their ad inventory available, optimize bids, and collect data on running ad campaigns.
• Ad Exchange: It is a virtual marketplace for buying and selling ad inventory. An ad exchange platform is where advertisers and publishers connect for ad transactions, participate in open auctions, and ensure the right ads reach the right targeted audience segments.
• Real-time Bidding (RTB): This technology makes programmatic advertising approach more efficient and rapid. This process allows advertisers to compete in the race to secure the right ad space. Meanwhile, through RTB, publishers receive competitive bids for available space from the right advertisers.
• Data Management Platform: DMPs play a major role in the oRTB ecosystem by enabling data sharing and deriving insightful information. This empowers advertisers and publishers to make data-oriented decisions and enhance the effectiveness of programmatic advertising workflows.
• Creative Management Platform: By ensuring ad creatives are concise and delivering them to the right platform dynamically based on real-time data, CMPs can contribute effectively to the OpenRTB ecosystem.

We are a trusted AdTech software development partner with extensive experience and capabilities in integrating OpenRTB and other programmatic advertising processes. From building custom OpenRTB platforms to integrating OpenRTB protocols into existing ad transaction workflows, our dedicated team of skilled tech professionals provides end-to-end AdTech development services. Our team can deliver customized solutions for the development of SSPs, DSPs, DMPs, and more, including deployment and setup within existing processes. Additionally, to make these platforms cloud-powered, we utilize Microsoft Azure and Amazon Web Services (AWS).

As a prominent custom AdTech Solutions provider, we help advertising businesses to tap into new horizons of programmatic advertising by incorporating leading technologies like AI/ML, data science, business intelligence services, data analytics, and more.

Footnote:

1. https://iabtechlab.com/openrtb-2-6-is-ready-for-implementation/