70% of display advertising is still bought in the old fashioned manner. Yep, that’s right, faxing order forms, negotiating prices etc.
But the advertising market is changing with programmatic advertising on the rise, whether it’s real time bidding (RTB) or programmatic direct.
There are new companies springing up all over the place providing technology platforms for buying real-time targeted advertising (so called ‘demand side platforms’) or technology to help publishers automate and optimise the selling of impressions.
New research from Turn, a digital advertising platform, shows the programmatic market is getting more competitive in some sectors, with CPMs increasing across channels, apart from mobile (where supply is quickly increasing).
What are the opportunities for marketers in different sectors when using RTB platforms?
In this post I’ll quickly explain a bit about programmatic advertising, as it can be a bit of a mind-bender for those on the outside, and I’ll take a little look at Turn’s latest research into trends.
Publishers are increasingly embracing real-time bidding via exchanges and SSPs, according to a new Econsultancy report.
Our Online Publishers Survey Report also shows how more publishers are using data to improve the effectiveness of advertising.
Here are a few tasters from the new report...
Real-time bidding (RTB) provides a great opportunity for companies to vastly increase their online presence to an interested audience.
However, as this market continues to grow, the options available to brands for management of their RTB increase and choosing the right agency for your company’s needs becomes harder.
One of the main problems faced with anyone researching their options for RTB management is that they have to navigate a minefield of display ecosystems, agencies, DSPs, trading desks etc.
However, in choosing an RTB agency to build and manage successful campaigns the most important first questions to ask are not always the most technical.
Having been involved with a number of RTB pitches and working with our clients we have found they have gained the most from asking questions such as those outlined below:
Chris O'Hara, Co-Founder and CRO of Bionic Advertising Systems, is the author responsible for our recently published Programmatic Marketing: Beyond RTB Best Practice Guide.
Below, he answers some questions about the new programmatic direct landscape and other topics covered in the report.
In a competitive real-time bidding marketplace it is important for demand-side platforms (DSPs) to deliver a high level of service and manage client expectations, however our new Online Advertisers Survey Report suggests that this isn’t always the case.
On the plus side though, marketers also appear to be pleased with the targeting and reporting capabilities that DSPs can offer.
In fact, improved targeting was cited as the main benefit (67%) of working with DSPs, followed by real-time understanding of campaign performance (53%) and the ability to buy at impression level (53%).
Here are some of the most interesting digital marketing statistics we've seen this week.
Stats include real-time bidding, showrooming, m-commerce, mobile sharing, US search spend and mobile ad budgets.
For more digital marketing stats, check out our Internet Statistics Compendium.
The benefits of RTB (real-time bidding) are something that’s often debated in marketing circles, as though it has obvious advantages in allowing advertisers to name their price for specific users RTB is criticised for relying on poor ad inventory and resulting in inflated prices.
But regardless of where you stand on the relative pros and cons of RTB, it’s fair to say that the technology has fundamentally altered the way that online advertising is bought and sold.
Our new Online Advertisers Survey Report asked 650 advertisers and agencies about the benefits of real-time bidding and found that more than half of advertisers see improved performance (62%) as the main advantage.
This was followed by reduced wastage (54%), lower cost per acquisition (53%) and better targeting capabilities (46%).
My last post covering the mechanics that underpin programmatic media provoked some interesting questions.
In particular, the following comment...
Before we start, thanks for the feedback on my first instalment on programmatic media, this was much appreciated and forms a useful basis for this next piece.
This post covers the mechanisms that underpin programmatic, and attempts to portray the varying perspectives of those involved.
My recent blogs on content and data have led to subsequent conversations about the role of content within RTB (real time bidding). In particular, how the recent announcements from Google, concerning programmatically served content, will play out over the next 18 months.
It's important when dazzled with new announcements from tech megabrands in particular to get perspective. To help set the context, here's a recap of my experience of the rise of programmatic media.