Over the past year or two programmatic buying and real-time bidding have become the new cornerstones of online media buying.
Traditional media negotiations, RFPs, and opaque ad networks have been replaced with a more efficient, more effective and more transparent media buying model.
Without the wastage of bulk buys and the time-consuming nature of negotiating directly with individual website publishers, advertisers and publishers alike are getting a better deal.
Indeed, according to eMarketer, more than a quarter of all display-ad spending in the U.S. will occur via real-time auctions by 2016. Spending is predicted to increase from US$1.9bn in 2012 to more than US$7bn to make up 28% of total display-ad buying by the end of that year. eMarketer suggested that there are four key factors that will drive this growth:
1. The maturation of the Facebook Exchange;
2. An expected influx of video and mobile inventory;
3. An anticipated greater availability of premium ad inventory; and
4. An overarching demand for better transparency for all of digital display, not just RTB.
Before the advent of the real-time bidding the majority of digital media buys were transacted with ad networks and publishers and provided little in the way of transparency into the actual buy. Now, marketers are now able to evaluate each impression against their goals before purchasing.
Greater transparency allows for greater analysis and optimisation to drive improvement. Programmatic buying allows you to buy at true market rates for each individual impression.
With the availability of high quality inventory from nationally recognised publishers in addition to the Facebook Exchange, along with powerful tools to ensure only appropriate sites are chosen to display the ads, real-time bidding is now delivering more efficiency, less waste and better results through more precise targeting.
Indeed Kellogg’s now places more than half of their online media through programmatic channels. Last year Bob Arnold, Associate Director of Digital Strategy at Kellogg’s told Forbes, “We’ve seen tremendous results when using programmatic buying. Depending on the brand, the digital media ROIs have increased as much as six times.”
Behavioural targeting data
Rather than selecting specific website ad placements, you can hook into behavioural targeting data collected from cookies and data exchanges to identify audience segments. Rather than defining narrow fixed site lists you can set up campaigns to test a wide variety of brand-safe sites, and then optimize to deliver on the best performing sites in the test group.
You can leverage targeting data to define the type of person you want for the ad impressions using your predefined targeting criteria and budget, and serve the ads accordingly. In terms of effectiveness, you target the right consumers at the right time.
New role on TV
Interesting, it’s in the lounge room that real-time bidding now holds more promise, even if it is still some way off. While TV remains the channel of choice for brand building, the growth of smart TVs, video on demand, and time shifting, have of course changed television viewing habits dramatically.
Overall the number of consumers who are exposed to TV ads is shrinking. As more media becomes digitised and more television is watched over the internet, programmatic buying for television will become more mainstream.
Allowing advertisers to bid on spots, using audience and show-performance data crunched in real time to target a mass TV audience individually is such an attractive proposition. Real-time bidding has the potential to revolutionise the way brands buy television advertising.
Simon Van Wyk is founder of HotHouse
Please login with linkedin to comment
TripleLift has today announced an expansion in their Asia Pacific (APAC) operations, with Henry Shelley [featured image] appointed as Managing Director, based in Singapore. Fueling TripleLift‘s expansion in APAC is its success in Australia, where the company works with 70 per cent of the top 50 comScore publishers. “As the home to several of the worlds’ […]
Rob Highett-Smith joins Fiftyfive5 in the newly created role of head of performance measurement. Performance measurement represents one of the three core offer areas at Fiftyfive5 with tracking programs running across 40 countries; representing our fastest growing capability pillar. Rob joins to lead this capability, which encompasses brand and comms tracking, multi market monitoring, CX and customer satisfaction, as well as other longitudinal programmatic work.
Podium has continued its international expansion today announcing its launch in Australia. Podium serves more than 90,000 local businesses in the United States, Canada and Australia, and has seen its customer base in Australia almost quadruple to over 3,000 local businesses since the start of the pandemic. Through its SMS-based platform, Podium helps local businesses receive […]
Independent experience agency The Misfits has recently announced a strategic partnership with cultural change and leadership experts Nancy Hromin and Kate Chaffer. While the company has for a long time operated in the space of creative services, digital and content marketing, film production and events, The Misfits is now broadening this offering to include business […]
Commercial DAB+ hip hop and RnB station, THE EDGE has appointed Emily Copeland, to the newly created role of General Manager. Copeland brings an awesome mix of skills and experience to THE EDGE, including cross-platform media content experience, partnerships and events (including music festivals – remember those?). Copeland also has a stack of achievements to […]
Brianne West is the founder and CEO of Ethique, a New Zealand-based sustainable, plastic free and cruelty free skin and hair care range. West sat down with B&T to explore what genuine environmental sustainability looks like, and how brands can better respond to eco-conscious consumers. B&T: Why are we seeing a rise in eco-conscious consumption? BW: […]
Blis has today revealed its new Consumer Confidence Pulse — the most comprehensive tracker of its kind — this interactive dashboard builds on its existing trend data around consumer mood to analyse behaviour during the COVID pandemic. The dashboard also now tracks consumer movement over a rolling 13-month period, across 18 retail and lifestyle sectors […]
Following the success of Series One: Grey Nomads, Australian Seniors has launched the second series of the Life’s Booming podcast – Dare to Date. Hosted by James Valentine (pictured with guests Liz and Barry), Life’s Booming explores the incredible stories and addresses topics important to Australians over 50. Series two titled Dare to Date is a six-part series that covers real-life love, […]
World-leading conversational agency VERSA has bolstered its team with two senior appointments in response to growing uptake in conversational AI technology across various sectors. Vanessa Tout has been appointed global head of client partnerships and growth, while Michael Oso-Hughes comes on board as design director. Tout joins VERSA CEO Kath Blackham and managing director Michael […]
Engagement marketing agency, Banter, has hired Patrick Rutkowski as Creative Technologist, to further bolster the digital and innovation side of the business. Rutkowski joins Banter after having spent the last five and a half years at independent creative agency, The Hallway where he was most recently creative technologist working with the likes of Rheem, Tourism […]
Kargo has today announced several major growth milestones across the APAC region for the first half of 2021, more than doubling H1 revenue year-over-year with 115 per cent growth. Kargo also ran 41 per cent more campaigns in the region than in H1 2020 and the average campaign size increased by 32 per cent over […]