Benefits and challenges of real-time bidding in online advertising

Much of digital advertising as we know it relies on the power of programmatic ad buying. state of digital describes it by saying, “Programmatic marketing is a way to target the types of audiences you want to show your advertising to. Which segments can encompass demographic segments such as age, gender, social or geographic status in certain parts of the country? As with paid search, you can also limit ads to times of day and frequency. You can decide which publishers you want to show your ads to. This way you only pay for highly effective ads served to the right people at the right time… Plus a buyer agrees to run a certain number of ads with a publisher and is bound by a contract. Programmatic media buying, marketing and advertising is the algorithmic buying and sale of advertising space in real time. During this process, the software is used to automate the buying, placement and optimization of media inventory through an auction system. The automation of the process means that it can be done in real time and does not rely on the human touch, manual insertions and manual trading. »

Marketers have found this effective in two ways. The first is that it helps target your ideal audience quickly and accurately so your message can have more impact. The automated nature of ad buying – and the ability to optimize it based on your settings – means that ad buyers don’t have to struggle as much to place their ads and optimize them throughout their run in order to maximize their efficiency and maximize their expenses.

As with everything, however, programmatic buying, especially the concept of real-time bidding, has its positives and negatives depending on your business goals and other factors.

Real-time bidding, or RTB, is, as the name suggests, related to the bidding process for programmatic ad space. Sellers of ad space make it available to buyers and publishers who bid on it. mobile-marketing note, “RTB is algorithm-based programmatic mobile ad commerce. By bidding on real-time inventory, advertisers can access very specific impression level attributes of their audience and are likely to pay less because they remove most of the friction from the sales process… Real-time bidding promises to impact how ad inventory is traded and can dramatically improve performance, according to a new report from Adfonic. However, it still presents challenges for marketers and its future role is by no means guaranteed”

Benefits of real-time bidding

#Improved performance

With RTB, advertisers can use a dashboard interface to control their campaign, instead of communicating with multiple vendors or publishers. This means that performance can be observed in real time, giving advertisers more agility.

#Better targeting

Real-time bidding offers advertisers the ability to truly segment the audiences most likely to be interested in their product or service. Retargeting involves displaying advertisements to those who have already shown some interest in the company or product, either through an online search or a visit to the website. RTB does the rest by decoding which websites the target audience spends their time on and when and allows ads to be retargeted accordingly.

#Reduced cost

RTB lets you spend smarter. Every impression is targeted so you’re not buying ad space in droves and wasting those impressions and budget dollars on unhelpful and disinterested market segments. It also means you can apply a frequency cap to your ad inventory and limit the number of times each viewer will see your ad, which is a smart way to optimize ad spend and also protect your brand integrity. , as constant advertisements and other forms of customer communication can become a deterrent to customers.

Real-Time Bidding Challenges

1. Mobile targeting

“Mobile first” is the rallying cry of marketers everywhere, and mobile is where most of the downside of real-time bidding occurs. Desktop or wired network computers have cookies to rely on to track user history and web targeting. On mobile, it’s harder to track certain aspects of online behavior or verify a unique user ID, both of which are critical to successful programmatic ad serving.

2. Banner ads on mobile

Some marketers are worried about the future of banner ads on mobile devices. Will they play an important role in the future? This is an important question to ask, as RTB primarily handles display and banner ads. Marketing experts feel that as mobile advertising becomes more advanced, it will evolve into more interactive marketing and banner ads will be phased out, meaning RTB will be an inefficient way to manage their marketing needs. mobile.

Overall, real-time bidding offers advertisers the opportunity to achieve more relevant customer impressions and engagement. Companies with a strong presence in display advertising find it a useful and effective overall tool in their marketing tool belt.