WRW recently launched a Lunch n’ Learn series for their staff… so we can stay in the know and serve you better! Our first guest speaker was Steve Monti, the Director of Sales for SiteScout. Between mouthfuls of burritos, we learned about RTB’s , here’s the recap:
What is Real-Time Bidding (RTB)?
RTB is an online advertising technology that enables publishers (website owners) to sell advertising inventory through an ad exchange platform on an impression-by-impression basis as each impression becomes available on a publisher’s website (in real time). Think auctions for ad space!
Forrester Research recently issued a report that says RTB is the “fastest growing segment of the online video advertising market,” having grown more than 100 percent in the last year. RTB is expected to grow another 70 percent this year, and by 2014, it will be responsible for nearly 25 percent of all online video spending.
What’s so great about it?
- RTB removes the middle person and connects publishers who are selling their ad inventory to advertisers.
- For agencies, this means more control over campaign performance and spending which ultimately results in better performance for clients. Meanwhile, advertisers can benefit by enhanced consumer targeting and being able to spend their ad budgets more efficiently without sacrificing reach. Publishers now have a reliable and easy way to fill their empty ad space and increase their revenue streams.
- The buying is all done in real-time and typically self-serve so you can take immediate action in updating and adjusting your campaigns.
- RTB brings out the fair market price.
Are there any challenges?
- Remnant inventory has a rep that it’s unwanted or poor quality ad space but this is not always the case.
- Publishers need to increase their confidence in this technology so they’ll be more willing to open up their premium inventory.
- Transparency is an ongoing battle in media buying so full disclosure to advertisers of where their ads are appearing is key to the success of this model.
- There is a learning curve so companies have to be willing to invest in hiring skilled specialists.
How does it work?
RTB operates on an auction model so it’s affordable even for small size budgets. Bid on $0.01 increments with SiteScout’s self serve platform. You can start with a $500 deposit into your account and take your time spending it. You only pay for space you buy.
Example: If “Advertiser A” bids $2.00 CPM and “Advertiser B” bids $1.50 CPM, “Advertiser A” will win the impression at $1.51 CPM.
To learn more about RTB, visit SiteScout.