OpenRTB has recently attracted a great deal of attention and popularity, due to its deep influence on the constantly changing environment of digital advertising. Explore this thorough article to find out more about OpenRTB, including its definition, background, features, and advantages.
Over the years, the programmatic advertising sector has experienced rapid expansion due to both technological advancements and changes in consumer behavior. According to Statista's forecasts, this increasing trend is anticipated to last until 2027 with a growth rate of 7.57 percent. However, as the sector develops, it also becomes more sophisticated and poses fresh problems.
In these situations, industry leaders step forward to handle the escalating complexity by creating standardized procedures to simplify the complex ecosystem. These initiatives seek to advance the sector by increasing programmatic entities' efficiency by bringing about order.
The IAB Tech Lab (short for Interactive Advertising Bureau) launched one such initiative, called OpenRTB, in 2010, to create a lingua franca (the common language of communication), between the demand side and supply side of the programmatic ecosystem. Instead of regulating specific corporate processes, the main goal was to streamline interactions between the entities.
Now, let's quickly review the fundamental terms used in the realm of digital advertising to improve your understanding before we get into learning everything there is to know about OpenRTB.
OpenRTB Terminologies
- Publisher (Supply Side): An organization that owns an application or website is referred to as a publisher.
- Site: An app or website that is owned by a publisher and has a specific ad space.
- Supply Side Platform (SSP): An SSP is a piece of software that enables publishers to market their ad inventories to a variety of buyers (exchanges, advertisers, ad networks, etc.) via exchanges.
- Advertiser (Demand Side): A party looking to buy publisher inventory to display its adverts.
- Demand-side platform (DSP): A DSP is a piece of software that enables marketers to buy advertising inventories from a variety of publishers via exchanges.
- Programmatic advertising: Automated exchanges between publishers and advertisers that involve the purchase and sale of digital media (ad space).
- Ad Exchanges: Through transparent auctions, ad exchanges enable real-time media (ads) transactions between various SSPs and DSPs.
- Bid (in advertising): In advertising, the bid is the highest price an advertiser is willing to pay for certain ad space.
- Bidding (in advertising): In an auction, placing bids on available ad inventory is referred to as bidding.
- Bidders: The organizations that compete in an auction to place the highest bid are referred to as bidders.
- Real-time bidding (RTB) is a protocol that harmonizes the real-time bidding process.
- Programmatic /Automated auction: The automated process of selling the publisher’s ad inventories to the advertiser who pays the highest through bidding.
The consortium, brought together three supply side (Admeld, PubMatic, and The Rubicon Project) and three demand side (DataXu, MediaMath, and Turn) technology pioneers to launch oRTB in November 2010.
To facilitate communication between the buy-side (advertisers) and sell-side (publishers) in RTB marketplaces, an open industry standard protocol was developed. It attempted to make it easier for rival buyers of publisher inventory (such as bids, demand-side platforms, and ad networks working with advertisers) to connect with suppliers of that inventory (such as ad exchanges, sell-side platforms, and ad networks working with publishers).
To standardize communication between programmatic parties when sharing block lists (Block list project), the first ORTB protocol was released in December 2010. A categorized list of websites and apps that brands or agencies have decided not to display their adverts on is known as a block list. This decision is typically made owing to concerns about brand safety and fraud.
The OpenRTB project approved Nexage's joint proposal to develop an API definition that especially supported mobile advertising (OpenRTB Mobile project) as a result of the significant industry acceptance of version 1.0 of the OpenRTB block list. The real-time bid request/response protocol for mobile advertising was the subject of the mobile subcommittee of the OpenRTB Mobile 1.0 specification, which was published in February 2011 by the mobile subcommittee of technology leaders. OpenRTB version 2.6 is the latest release by IAB that supports header bidding, out-stream video, billing, and loss notification for mobile advertising.
In the ecosystem of programmatic advertising, the ORTB standard protocol regulates how media is exchanged between publishers and advertisers. The term "transaction of media" refers to the real-time auction-based exchange of advertising inventory between publishers and advertisers. This makes it possible for the advertiser's advertisement to be seen in real-time on the publisher's website. For organizations interested in an open protocol for the automated selling of digital media across a wider range of platforms, devices, and advertising solutions, this requires establishing an API definition for delivery.
* Bid request and response
* Ad formats
* Bidding techniques
* Publisher and placement types
* Win notice and Loss notice
When dealing with media, these principles provide uniformity in communication. For instance, a publication must use a particular communication channel while submitting a bid request. For buyers to make better-informed bidding selections, the API specification created for this purpose will need necessary information, such as seller information, site URL, site category, creative standards, size, unit, etc. When submitting a bid request, each publisher who chooses the open protocol (oRTB) is required to adhere to this standard. As a result, it guarantees that all parties involved in real-time marketplaces for the exchange of media use the same language when making bid requests.
The difference between RTB and oRTB
How does the oRTB technology work
Let's first examine how the material is exchanged in the real-time programmatic ecosystem to comprehend how oRTB technology operates.
Now, let's get into the intricacies of this process and understand the role of oRTB.
The publisher's website creates an inbound ad request when a user accesses a web page. This ad request contains a lot of first-party information about the user, including demographics, psychographics, and activity. The Supply Side Platform (SSP) subsequently forwards this request to a Real-Time Bidding (RTB) exchange as a bid request for auction. The publisher's data (site ID, site category, site URL, information regarding ad placement, etc.) and user data are carried in the bid request according to oRTB standards in JSON data format. These bid requests will then be transmitted to the advertisers via the Demand Side Platform (DSP) in accordance with RTB requirements (because bidding will take place on the request).
Note: JSON (JavaScript Object Notation) language is the most widely adopted data format for bid requests and bid responses. It was chosen due to its human readability and compact abilities.
By exchanging a bid answer with the exchange that includes crucial details like creative qualities, an image URL, and the bid price (per oRTB standards), several bidders can participate in the auction. Within the exchange, an auction is held to assess the suitability of offers in accordance with the current auction regulations. The exchange ultimately chooses the highest bidder as the winner, and a win note is given to indicate a successful auction victory.
In contrast, a loss notification advising the other bidders of their failure to win the offer along with the cause of the loss is delivered to them. The winning bidder's advertisement is subsequently shown on the publisher's website, making an impact. This entire process of media transaction involving real-time interaction between SSPs and DSPs is known as Real-Time Bidding.
The ORTB requirements do not only apply to bid requests and answers. To date, a number of oRTB protocols have been made available, each of which supports a different feature aimed at ensuring uniformity in the real-time bidding process. Let's examine the features supported by the various oRTB versions.
Bid request examples
Example 1 – Simple Banner
The basic format of a banner ad bid request is shown below with some optional parameters.
{
"id": "80ce30c53c16e6ede735f123ef6e32361bfc7b22",
"at": 1,
"cur": [ "USD" ],
"imp": [
{
"id": "1",
"bidfloor": 0.03,
"banner": {
"h": 250, "w": 300, "pos": 0
}
}
],
"site": {
"id": "102855",
"cat": [ "IAB3-1" ],
"domain": "www.foobar.com",
"page": "http://www.foobar.com/1234.html ",
"publisher": {
"id": "8953", "name": "foobar.com",
"cat": [ "IAB3-1" ],
"domain": "foobar.com"
}
},
"device": {
"ua": "Mozilla/5.0 (Macintosh; Intel Mac OS X 10_6_8) AppleWebKit/537.13
(KHTML, like Gecko) Version/5.1.7 Safari/534.57.2",
"ip": "123.145.167.10"
},
"user": {
"id": "55816b39711f9b5acf3b90e313ed29e51665623f"
}
}
Example 2 – Mobile
In this example, a device object represents a mobile device, while an app object represents a mobile application's request.
{
"id": "IxexyLDIIk",
"at": 2,
"bcat": ["IAB25", "IAB7-39", "IAB8-18", "IAB8-5", "IAB9-9"],
"badv": ["apple.com", "go-text.me", "heywire.com"],
"imp": [
{
"id": "1",
"bidfloor": 0.5,
"instl": 0,
"tagid": "agltb3B1Yi1pbmNyDQsSBFNpdGUY7fD0FAw",
"banner": {
"w": 728,
"h": 90,
"pos": 1,
"btype": [4],
"battr": [14],
"api": [3]
}
}
],
"app": {
"id": "agltb3B1Yi1pbmNyDAsSA0FwcBiJkfIUDA",
"name": "Yahoo Weather",
"cat": ["IAB15", "IAB15-10"],
"ver": "1.0.2",
"bundle": "12345",
"storeurl": "https://itunes.apple.com/id628677149",
"publisher": {
"id": "agltb3B1Yi1pbmNyDAsSA0FwcBiJkfTUCV",
"name": "yahoo",
"domain": "www.yahoo.com"
}
},
"device": {
"dnt": 0,
"ua": "Mozilla/5.0 (iPhone; CPU iPhone OS 6_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3",
"ip": "123.145.167.189",
"ifa": "AA000DFE74168477C70D291f574D344790E0BB11",
"carrier": "VERIZON",
"language": "en",
"make": "Apple",
"model": "iPhone",
"os": "iOS",
"osv": "6.1",
"js": 1,
"connectiontype": 3,
"devicetype": 1,
"geo": {
"lat": 35.012345,
"lon": -115.12345,
"country": "USA",
"metro": "803",
"region": "CA",
"city": "Los Angeles",
"zip": "90049"
}
},
"user": {
"id": "ffffffd5135596709273b3a1a07e466ea2bf4fff",
"yob": 1984,
"gender": "M"
}
}
Example 3 – Video
The example shows a bid request for a video impression with two companion ad slots, one of which is expandable.
{
"id": "1234567893",
"at": 2,
"tmax": 120,
"imp": [
{
"id": "1",
"bidfloor": 0.03,
"video": {
"w": 640,
"h": 480,
"pos": 1,
"startdelay": 0,
"minduration": 5,
"maxduration": 30,
"maxextended": 30,
"minbitrate": 300,
"maxbitrate": 1500,
"api": [1, 2],
"protocols": [2, 3],
"mimes": [
"video/x-flv",
"video/mp4",
"application/x-shockwave-flash",
"application/javascript"
],
"linearity": 1,
"boxingallowed": 1,
"playbackmethod": [1, 3],
"delivery": [2],
"battr": [13, 14],
"companionad": [
{
"id": "1234567893-1",
"w": 300,
"h": 250,
"pos": 1,
"battr": [13, 14],
"expdir": [2, 4]
},
{
"id": "1234567893-2",
"w": 728,
"h": 90,
"pos": 1,
"battr": [13, 14]
}
],
"companiontype": [1, 2]
}
}
],
"site": {
"id": "1345135123",
"name": "Site ABCD",
"domain": "siteabcd.com",
"cat": ["IAB2-1", "IAB2-2"],
"page": "http://siteabcd.com/page.htm",
"ref": "http://referringsite.com/referringpage.htm",
"privacypolicy": 1,
"publisher": {
"id": "pub12345",
"name": "Publisher A"
},
"content": {
"id": "1234567",
"series": "All About Cars",
"season": "2",
"episode": 23,
"title": "Car Show",
"cat": ["IAB2-2"],
"keywords": "keyword-a,keyword-b,keyword-c"
}
},
"device": {
"ip": "64.124.253.1",
"ua": "Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.6; en-US; rv:1.9.2.16) Gecko/20110319 Firefox/3.6.16",
"os": "OS X",
"flashver": "10.1",
"js": 1
},
"user": {
"id": "456789876567897654678987656789",
"buyeruid": "545678765467876567898765678987654",
"data": [
{
"id": "6",
"name": "Data Provider 1",
"segment": [
{
"id": "12341318394918",
"name": "auto intenders"
},
{
"id": "1234131839491234",
"name": "auto enthusiasts"
}
]
}
]
}
}
Example courtesy: https://www.iab.com/
OpenRTB versions and their features
OpenRTB Real-Time Bidding API
Version 2.6 - Supports Connected TV (CTV) buying and selling of digital media.
Version 2.5 - Support for header bidding, billing, and loss notifications, Video ad serving template (VAST), Flex Ads, Payment ID, tactic ID, impression metrics, out-stream video, and many more minor enhancements.
Version 2.4 - Support for Audio ad units, SSL, video scriptability, and increased location support.
Version 2.3 - Supports Native ad units and multiple minor enhancements.
Version 2.2 - New enhancements for private marketplace direct deals, video, mobile, and regulatory signals.
Version 2.1 - Revisions for IQG compliance, minor enhancements, and corrections.
Version 2.0 - Unified specification for display, mobile, and video capabilities.
Version 1.0 - Original Release of OpenRTB Mobile.
OpenRTB Display Block List Branch
Version 1.2 - Publisher Preferences API (proposed).
Version 1.1 - Minor changes to include the real-time exchange of creative attributes.
Version 1.0 - Original Release of OpenRTB block list specifications.
oRTB Benefits
The interaction between all the components of the programmable ecosystem is made simpler by this single protocol.
Advertisers do not need to interface their platform with their supply-side tools in order to access all inventory providers that enable RTB.
For a single ad inventory, ORTB enables multiple bidders. In turn, this might raise the inventory value of the publisher and hence optimize yield.
ORTB connects publishers and advertisers across diverse regions and compatibilities.
OpenRTB offers a platform that encourages participation and experimentation among participants of various sizes in terms of their marketing techniques. This especially helps new market participants.
Reduces SSP and DSP maintenance expenses by supporting interfaces with various exchanges.
SSPs and DSPs can use more than one integration without incurring additional development costs for each one.
AdTech and MarTech solutions can increase the profitability and appeal of their products by implementing ORTB standards.
The universal language strategy enables ad agencies to assist clients from around the world and access inventory globally.
Conclusion
These days, digital advertising offers a wide range of cutting-edge technology and solutions, including SSPs, DSPs, ad networks, and ad servers. Since oRTB was introduced, these entities can now interact seamlessly, improving the effectiveness of advertising between publishers and advertisers. Due to its scalability, affordability, and capacity to boost efficiency, oRTB is projected to be more common and play a significant part in the future of digital advertising as programmatic advertising continues to develop.
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