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Real-Time Bidding

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by

Pamela Neukirch

on 20 October 2014

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Transcript of Real-Time Bidding

Demand-Side Platforms
(DSPs)
Software that allows advertisers to buy user impressions based on their demographics and psychographics.
Let the Bidding Begin
Once the DSP evaluates the best deal, it budgets the max amount to bid on an ad space and automatically bids for the advertiser.
To understand the process of Real-Time Bidding
Learning Objectives
Real-Time Bidding
Real-time bidding is the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a web page to load.
What is Real-Time Bidding??
For publishers, their ad prices have increased by 15-3000%
Growth Trends
RTB started in 2009
a little bit of history
Who's Driving the Trend?
Facebook
Twitter
To learn how Real-Time Bidding is growing in the marketplace
To understand the applications of the trend
To learn what companies are using Real-Time Bidding
To understand the pros and cons of Real-Time Bidding
Your web page is uploading...
The Process
the page environment
the website
the user
This generates an ad request by the publisher of the website
Publishers send the ad request to advertisers who use Demand-Side Platforms to help them decide which ad impressions to purchase and how much to bid on them.
What are Demand-Side Platforms, you ask??
Determines the value of an individual impression in real time (less than 100 milliseconds) based on a user's history
Ad location, size, clutter
URL, Context, Type
Behavioral and demographic data
After launching RTB (display) Facebook's shares rose 3.7% in two weeks.

In 2014, FBX partnered with Google DoubleClick to bring Google's data to Facebook

FBX recently adjusted it's use to include re-targeted ad's featured on the news feed

Facebook is currently working to develop RTB capabilities for mobile

Some analysts estimate that FBX is currently accounting for over $1 billion a year in sales
Advertisers were looking for more cost-efficient ways of buying online ad space
Able to maximize results with shorter timelines
Targets ads to more specific users
Google DoubleClick Ad Exchange was the first to capitalize on RTB
For ad agencies, ad effectiveness has improved from 20% to 150%
RTB spending is forecast to grow from $1.4 billion in 2011 to $13.9 billion in 2016
Works Cited
"In the context of native advertising, RTB retargeting ads may therefore not be able to blend in as easily to the consumer experience. Thus, RTB retargeting ads may need to be re-imagined for native and mobile ad platforms."- Demystifiying Programmatic Marketing and RTB

Marshall, Jack. "WTF is a demand-side platform?" Digiday, 8 Jan 2014. Web. 7 Apr 2014. <http://digiday.com/platforms/wtf-demand-side-platform/>
Marshall, Jack. "WTF is real-time bidding?" Digiday, 17 Feb 2014. Web. 7 Apr 2014. <http://digiday.com/platforms/what-is-real-time-bidding/>
Oberoi, Ankit. "An In-depth Article on Real-Time Bidding." Adpushup, Dec 2013. Web. 7 Apr 2014. <http://www.adpushup.com/blog/the-ultimate-guide-to-real-time-bidding/>
Wikipedia. "Real-time bidding." wikipedia, 3 Apr 2014. Web. 7 Apr 2014. <http://en.wikipedia.org/wiki/Real-time_bidding>
Twitter acquires mobile tech company MoPub for $350 million
Wade Estes | Pamela Neukirch
Future Plans
Real-Time Bidding Negatives
Not yet completely integrated
Potential to automate sales jobs
Data Privacy
Brand Campaigns
MacMillan, Douglas. "Facebook to Debut Real-Time Bidding on Advertising Prices." Bloomberg, 14 July 2012. <http://www.bloomberg.com/news/2012-06-13/facebook-to-debut-real-time-bidding-for-advertising.html/>
Taylor, Heather "The truth about Real-Time Bidding." Econsultancy, Aug 2012. <http://www.econsultancy.com/blog/1-536-the-truth-about-real-time-bidding/>
Tuabe, Aaron. "Twitter Just Told Everyone How It's Thinking About the Future of Real-Time Bidding." Business Insider, Oct 30 2013. <http://www.businesinsider.com/twitter-just-told-everyone-how-its-thinking-about-the-future-of-real-time-bidding/>
What does this mean?
Improves Efficiency
Revolutionizing Display Advertising
Mobile
Video
Spending on video ads bought via RTB will top $1 billion in 2014

Real-Time Bidding Benefits
Minimizes CPM waste

Ensures that message is received by target demographic only

Diversifies message through a number of different host platforms




In 2015, RTB spending will account for one out of four display advertising dollars.
1 in 4 searches are conducted on mobile devices

The average American spends almost 2 hours a day on a mobile device

4 out of 5 consumers use smartphones to shop

Maximize results within shorter time frames

Add revenue streams to Big Data businesses

Set price based on site content relevance

In-stream video RTB ads could open the door for "pay per view" platforms to incorporate RTB into their model
Top 3 Brands Buying RTB Advertisements

1) AT&T
2) General Motors
3) Toyota
Warden,Chris. "7 Mobile Marketing Stats That Will Blow Your Mind." Convince & Convert, 10 Feb 2013. http://www.convinceandconvert.com/mobile/7-mobile-marketing-stats-that-will-blow-your-mind/
Full transcript