What is OpenRTB?
An open standard communication protocol that enables real-time bidding for digital advertising inventory across different platforms and systems.
OpenRTB (Open Real-Time Bidding) is an industry standard protocol developed by the IAB (Interactive Advertising Bureau) that enables real-time bidding communication between supply-side platforms (SSPs), demand-side platforms (DSPs), and ad exchanges. It standardizes the way bid requests and responses are formatted and transmitted, allowing different adtech platforms to communicate seamlessly during programmatic advertising auctions.
Why It Matters
OpenRTB creates interoperability in the programmatic advertising ecosystem, allowing advertisers and publishers to work with multiple platforms without custom integrations. It increases competition by enabling more bidders to participate in auctions, typically resulting in higher CPMs for publishers and better inventory access for advertisers.
How to Calculate
OpenRTB performance is measured through auction metrics: Bid Response Rate = (Bid Responses ÷ Bid Requests) × 100%, Win Rate = (Won Auctions ÷ Bid Responses) × 100%, and Latency = Average response time for bid requests in milliseconds.
Industry Benchmarks
| Category | Average | Good Performance |
|---|---|---|
| Bid Response Rate | 15-40% | 30%+ |
| Win Rate | 10-30% | 20%+ |
| Response Latency | 50-100ms | <50ms |
Best Practices
Implement efficient bid request filtering to reduce unnecessary traffic. Optimize bid response times to stay within timeout limits. Use proper OpenRTB version compatibility across all partners. Implement robust QPS (queries per second) handling for high-volume auctions. Monitor bid response rates and win rates to optimize bidding strategies.
Examples
A mobile DSP receives OpenRTB 2.5 bid requests from multiple SSPs, processes user data and campaign targeting rules, then responds with bids in the standardized format. An SSP uses OpenRTB to simultaneously request bids from 20+ DSPs for a premium video ad slot, with all responses processed within 100ms.
Notes
OpenRTB has evolved through multiple versions (2.0, 2.1, 2.2, 2.3, 2.4, 2.5, 3.0) with enhanced features and mobile support. Version 3.0 introduced significant structural changes and better mobile/app support. Proper implementation requires understanding of JSON formatting, HTTP protocols, and real-time system architecture.