RTB and Ad Networks: The Unspoken Rules Top Performers Use to Decide

What’s up, I’m Wing—a marketing professional based in the U.S. If you’re advertising online, you’ve definitely come across terms like “ad networks” and “real-time bidding (RTB) platforms.” But what do they actually mean? How are they different from major players like Facebook, Google, or TikTok?

Let’s cut through the jargon and break it down in a way that makes sense.

1. The Walled Gardens: Facebook, Google, TikTok

Think of these platforms as high-end department stores—like Macy’s or Nordstrom. They own the space, control the inventory, and manage the entire shopping experience.

When you run ads here, everything from browsing to conversion happens inside their ecosystem. Because they have full visibility into user behavior, their algorithms get smarter, delivering highly targeted ads. They also extend their reach through external partner networks (like Facebook Audience Network or Google Display Network), but their main strength is their owned environment.

When should you use them?
When you want stability, scale, and closed-loop optimization—especially in a post-iOS privacy world. To get the most out of these platforms, make sure you’re passing back key events and values. Combine that with on-platform engagement signals—likes, comments, time spent—and you’ll have a real competitive advantage.

2. RTB Platforms: The Stock Exchange of Ads

Platforms like Google DV360, The Trade Desk, and Moloco operate like a dynamic stock exchange or a live auction. Ad impressions are bought and sold in real-time, with bids flying fast and visibility into pricing.

Pros:

• Massive reach and variety

• Flexible pricing models

• Great for testing and scaling quickly

Cons:

• Quality can vary widely

• You need to actively manage sources and placements

When to use RTB?

• Testing phase: When you’re exploring new audiences or creatives.

• Scaling phase: Once you’ve found what works, use whitelists and smart budgeting to scale efficiently.

RTB offers transparency in bidding—but you still need your own quality control. It’s not automatic.

3. OEM and On-Device Ads: The Pre-Loaded Bloatware

OEM ads—think pre-installed apps or ads on device manufacturer platforms (like Samsung Ads or ads on Fire TV)—are a bit like ads you see on an airline seatback screen: you’re a captive audience.

Pros:

• Close to the user—often seen during device setup or in native OS experiences

• Can feel less intrusive

Cons:

• Limited scale and ad placements

• Often requires direct integration with each manufacturer

Best for:
Supplemental reach or specific scenarios, like new device onboarding. Don’t expect it to be your primary channel—it’s more of a niche play.

4. SDK Ad Networks: The Wild West of User Acquisition

Networks like AppLovin, Unity, and Vungle are like a busy flea market or a bargain bazaar—lots of inventory, low prices, and fast volume.

Pros:

• High volume, low cost

• Good for quick scale, especially with rewarded video

Cons:

• User quality can be low

• Higher fraud risk

• Less transparency

Ideal for:

• Apps focused on ad revenue (IAA)

• Not ideal for: high-value subscriptions or e-commerce—unless you’re carefully filtering and monitoring traffic.

Yes, ad networks have a reputation for sketchy traffic—but it’s not all bad. You just need strong systems to separate the good from the garbage.

How Do Ad Networks Deliver Ads? (The Uber Analogy)

1. Rule-Based Filtering
   Just like Uber filters available drivers by distance and car type, ad networks filter available ad spots by country, device, and context.

2. Strategy & Matching
   The platform picks the best ad based on speed, user experience, and potential revenue (eCPM).

3. Attribution & Learning
   Which ad led to a click or install? That data feeds back into the system.

4. Optimization
   The system learns and starts favoring higher-performing sources.

It’s a continuous cycle: filter → predict → serve → learn.

Why Ad Fraud Is Common in Networks—And How to Fight Back

• Too many sources: Hard to monitor every partner.

• Algorithm gaming: Fake “high converters” get rewarded.

• Lack of full-funnel data: Delayed or incomplete signals mislead the system.

Your defense strategy:

• Use whitelists for trusted sources

• Blacklist bad actors immediately

• Implement tiered bidding (bid higher for quality)

• Track post-install behavior (retention, purchases)

• Throttle sudden suspicious spikes

• Cross-reference data with other channels

The Bottom Line: Choose Your Flavor

• Walled Gardens = Department Stores: Reliable, high-quality, full-funnel.

• RTB = Stock Exchange: Transparent, flexible, test-friendly.

• OEM = In-Flight Magazine: Niche, captive, limited scale.

• Ad Networks = Flea Market: High volume, low cost, needs filtering.

Myths Debunked:

• Myth 1: Ad networks are all low-quality.
  Truth: They’re not inherently bad—you just need to filter aggressively.

• Myth 2: RTB is fully transparent, so it’s always better.
  Truth: Bidding is transparent, but quality isn’t guaranteed.

• Myth 3: Walled gardens only care about on-platform behavior.
  Truth: They also rely on your off-platform event data.

So—which ad channel fits your strategy best?
The department store, the stock exchange, the in-flight magazine, or the flea market?

If this was helpful, give me a follow for more straight-shooting marketing insights.
—Wing