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Much has changed during the rise of online bidding, social media and video that it has made the old ad serving companies irrelevant.
Michael Rubenstein, president of AppNexus, has been working for the past three years on developing better technology in the ad serving space.
AppNexus has grown very quickly into a global company and is trying to establish a new standard for advertising technology.
We had a chance to speak to Rubenstein about the rise of real time bidding and what marketers need to do to stay ahead of the game.
What is the benefit in real time bidding for display ads?
Real time bidding is a fancy way of talking about automation in the display ad buying and selling process. This allows people to buy and sell on an impression by impression basis which is a far more granular way to buy ads.
Rather than buyers being restricted to a small number of agencies or dealing with sellers on a one to one basis, there is now thousands and thousands of sellers they can work with. We're beginning to see this as a very important with the introduction of automation where it was once a very manual process.
Paid search budgets appear to be decreasing. Is there a chance for marketers to continue to get the budgets they need, or will they completely disappear?
They won't disappear completely but I think display will grow much faster than search in the coming years.
For a long time, search received the benefit of last view attribution. Google got a lot of credit for driving sales where graphical advertising probably should have been credited. With better attribution in place, we will see display ads driving activity and driving positive responses online.
Microsoft and Google will definitely still have a prominent space but display will grow at a lot faster rate than it has previously.
What role will mobile play in this space?
Mobile is having a bigger impact as consumers are using it more and more. Monetization in mobile is still very nascent but we're seeing much more interest in finding a solution. It's still a small piece of the advertising pie but over the next few years, we will a see strong growth in mobile driving revenue.
Some top tips for marketers looking to get ahead?
It's important for marketers to understand and invest in unlocking the very valuable asset of their data. You need to take the data generated in interaction with clients and test platforms to find which one is best toward driving more interactions.
Real time bidding is an important part of the ecosystem and now that it is pragmatic, it is measurable. Marketers could justify Google because you could see the activity. Real time bidding now has the same characteristics and are measurable so the results are warranting continued investment.
Any last thoughts?
I think that automated media buying is a very important tool in a marketers arsenel. Digital is the most important marketing channel and real time bidding is the most effective way to drive ROI in the digital channel.
Any marketer not investing directly in this area to leverage media, needs to be trying that route.