In the world of programmatic advertising, milliseconds matter. Every digital ad you see, whether on a website, mobile app, smart TV, or DOOH (Digital Out-of-Home) screen, results from a high-speed auction that takes place behind the scenes. At the heart of this process is a Demand-Side Platform (DSP) bidder, like the one operated by Targetoo.
Let’s break down how Targetoo’s bidder works based on the flowchart in Figure 1. We will also explore the strong mechanics driving real-time bidding (RTB).
Step 1: It All Starts with a Bid Request
When a user visits a website or app that serves programmatic ads, an ad impression opportunity is generated. This triggers a bid request, which includes key data such as:
Device and browser type
User location (if available)
Content context
Audience attributes (from DMPs or first-party data)
Ad slot size and format
This bid request is sent to Targetoo’s DSP Bidder, where the real magic begins.
Step 2: Creative Matching and Price Calculation
Once inside the Targetoo DSP Bidder, the system immediately begins matching the incoming bid request with available creatives in its inventory. Each creative is evaluated for:
Relevance to the impression opportunity
Compliance with publisher or exchange requirements
Targeting criteria (e.g., geolocation, language, device)
Alongside this matching, the system calculates a bid price for each creative. This price reflects the predicted value of winning the impression, based on factors like historical engagement, predicted conversion probability, user segment quality, and budget constraints.
Step 3: Optional Third-Party Service Enrichment
What makes Targetoo’s architecture even more robust is its integration with third-party services.
At this point in the flow, Targetoo can send:
Bid request data
Creative candidates with their calculated bid prices
to an external decision-making or optimization service. These services can run additional models or rules, such as:
Machine learning-based bid price optimization
Frequency capping checks
Custom campaign logic
The third-party service returns the winning creative and, if needed, a modified bid price if it identifies opportunities for improvement. This flexible interaction allows advertisers to use their own intelligence or outside optimization tools without delaying the auction process.
Step 4: Bidding Agent Takes Over
Now that a winning creative and price are selected—either through internal logic or third-party enrichment—the Bidding Agent moves into action. This component is responsible for:
Assembling a valid bid response
Formatting it according to OpenRTB standards
Including the bid price, creative ID, and tracking elements
This rapid response must be executed in less than 100 milliseconds to be considered in the ad exchange’s auction.
Step 5: Bid Response is Sent
Finally, the bid response is sent back through the auction pipeline. If Targetoo’s bid wins, the creative is displayed to the user in real-time. If not, the bidder simply waits for the next opportunity.
Why This Flow Matters
This seemingly simple flowchart hides a lot of complexity, but also demonstrates the elegant automation behind Targetoo’s DSP. Here's why it’s so powerful:
Speed and Efficiency: Every step, from bid request to response, happens in milliseconds. The ability to run creative matching, bidding logic, and third-party optimization at scale without latency is a technical achievement.
Customization: Integration with third-party services gives advertisers flexibility to inject their own rules, algorithms, or audience data into the bidding process.
Optimization: The bid price isn’t arbitrary—it’s calculated using AI-driven signals that increase the likelihood of ROI-positive outcomes.
Transparency: A well-structured flow like this allows buyers to understand how decisions are made and where optimizations are happening.
The Targetoo DSP Bidder is more than just a bidding engine. It’s a fast decision-making system that provides precision, personalization, and performance in real-time.
By understanding this process, advertisers can better see the complexity behind each impression and how their media budgets are optimized with every bid. For brands wanting to grow their programmatic efforts across CTV, mobile, web, and DOOH, Targetoo’s clear and smart bidder setup offers a competitive advantage.
If you want to learn more about RTB and how you can use it to create amazing advertising ROI, get in touch.