Definition & Meaning of "real-time bidding"

What is "real-time bidding"?

Real-time bidding (RTB) is a method of buying and selling online advertising space in real time through an auction process. Advertisers bid on ad impressions as they become available, and the highest bid wins the opportunity to display an ad to a specific user. This process happens in milliseconds, as users visit websites or view content. RTB allows advertisers to target their ads more precisely, based on factors such as user behavior, demographics, and location, while providing publishers with a way to maximize revenue by selling ad space to the highest bidder.