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Real Time Bidding : digital assets yield management

Real time bidding, also known as RTB, refers to a new technique for buying and selling Display Advertising. Transactions are realized through a real-time bidding system via marketplaces also called Ad Exchanges. They connect sellers (publishers) who set the minimum prices for their spaces and buyers (advertisers) who set their maximum prices, all based on specific formats and targeting criteria. Real time bidding, is this the right solution ?

Benefits and weaknesses for advertisers, publishers and users

Advertisers

Benefits

  • The almost complete automation of the purchase and implementation phases of the campaigns reduces the operating costs of the transactions, which has the effect of lower commissions than those charged by traditional boards.
  • Compared to traditional banner campaigns, the RTB can reach a targeted audience 100% useful, also meaning a better return on investment.
  • Ultra-personalized targeting is now possible. The right message is sent to the right person.
  • Advertisers have the possibility of “blacklisting” publishers’ sites on which they do not wish to appear.
  • The RTB offers a saving of time on the setting up of the campaigns and the purchase of spaces.

Weaknesses

  • However, depending on the choice of the provider and also considering the recent nature of the RTB, it is sometimes difficult to control the list and the quality of the sites on which the commercials are broadcast.
  • The location of the impression on the publisher site is not necessarily controlled. A “lost” location at the bottom of the page will not have the same success as a “premium” space.
  • The principle of the RTB does not allow to obtain exclusivity of the sites.
  • Going live with an Ad Exchange or DSP requires the integration of specific technical skills into the company.

Publishers

Benefits

  • The publisher adds value to their ad inventory and increases their eCPT.
  • Small publishers with highly qualified information but low volume can better monetize their audience. They were until then often badly considered by ad networks.
  • The publisher is expanding the sale of its spaces to new advertising customers.
  • There is minimization of the risk of unsold spaces.
  • Using an SSP or even an Ad Exchange requires few internal resources.
  • The RTB generates productivity gains for the publishers by eliminating the time spent on traditional negotiations with advertisers and ad networks.

Weaknesses

  • Some advertisers see the RTB as a way to buy low-cost space, which helps to devalue the spaces of the “premium” publishers.
  • Internet users are more interested in protecting their personal data and some browsers allow anonymous browsing which limits the reach of campaigns.

Users

Benefits

  • The main advantage is the relevance of the message to the user, created and disseminated according to his interests, sociodemographic criteria and behavior.

Weaknesses

  • The profile of the user must be sufficiently qualified and updated to claim advertising tailored to his needs.
  • The user may regret or refuse the use of his personal information, considering it an infringement of the protection of his data. Extreme targeting can thus be of a worrying and intrusive nature, diverting the user from advertisers (and therefore companies) using this type of technique.

What about Advertz’s services ?

Advertising spaces are mostly bought and sold through programmatic auctions as in the financial markets. Their goal is maximizing profit and selling “bottom of tank” space. Prices are therefore quite opaque with algorithms and multiple intermediaries. Advertz does not use an RTB system : on the other hand, we offer different price options where advertisers are free to choose :

  • A firm price by CPM, CPC or EVM.
  • A price range: maximum and minimum price
  • At Least Saying Prices : Reverse Auction System
  • Guaranteed return on investment : budget is refunded if objectives are not achieved

Reverse Action System

A reverse auction is a type of auction in which the traditional roles of buyer and seller are reversed. Thus, there is one buyer and many potential sellers. In an ordinary auction (also known as a ‘forward auction’), buyers compete to obtain goods or services by offering increasingly higher prices. In contrast, in a reverse auction, sellers compete to obtain business from the buyer and prices will typically decrease as sellers underbid each other.

 

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