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Real-time bidding (RTB) is no longer an unknown entity for marketers, but equally it has yet to reach a clear tipping point in terms of mainstream adoption.

It’s not far off that point though and the launch of Facebook’s RTB network should hasten the move towards more widespread investment.

However a recent study found that one of the biggest concerns among media buyers is that they would be buying low quality inventory, which in turn may damage their brand.

So clearly marketers still need to be educated as to the potential benefits of RTB.

Our new Real-Time Bidding Buyer’s Guide contains detailed information about the trends and issues affecting the online display advertising sector, as well as advice about how to find the right RTB platform.

Furthermore, a new report from Infectious Media includes some useful information regarding the RTB market in various European markets.

The data, which is aggregated from Infectious Media clients using its Impression Desk system, highlights the turbulent nature of CTR and CPC in Europe. 

In both the EU and UK CPMs rose towards the end of spring but then decreased over summer, which may suggest seasonality in buying patterns across these European markets.

The major fluctuations in CPC appear to be related to shifts in CTR and CPM. Infectious Media suggests that the fall in CTR in the EU in May combined with an increase in CPM to cause a spike in CPC, but this was quickly mitigated by an increase in CTR in June and July.

In contrast UK CPM and CTRs mirrored each other leading to a relatively low and consistent CPC. The report concludes that CPM and CTR are likely to increase in the run up to Christmas.

If you require further information on the costs involved with RTB, our Buyer’s Guide includes a full analysis of different pricing models. 

More impressions leads to more clicks

The report also highlights stats that show a strong correlation between increase in frequency of seen-impressions and CTR.

There are varying levels of effect in each region, but even in the lowest performing regions users shown 10 adverts increased their click rate by 10-fold.

It’s perhaps not that surprising that a company that sells display advertising has found stats to prove that the impact of display improves the more you invest, but it is still interesting to note the relationship between frequency and CTR.

As display generally achieves low CTR it is often undersold in attribution models that work on a last-click basis.

Yet this data indicates that display does have an impact on online consumers even if it doesn’t always cause them to click on the first banner ad they see.

David Moth

Published 24 October, 2012 by David Moth @ Econsultancy

David Moth is Editor and Head of Social at Econsultancy. You can follow him on Twitter or connect via Google+ and LinkedIn

1679 more posts from this author

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Fraser White

I had no idea RTB existed. So far we have been experiencing good CTR & CPC rates with search advertising but have stayed clear of Facebook advertising and there is a perception there is no conversion value, does anybody have good advertising experiences on Facebook? And how will RTB affect this?

over 3 years ago

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