The Publisher Side: 5 Real Time Bidding Insider Secrets for 2016
Real-Time Bidding or RTB is becoming a more dominate method to purchase ad space. Despite RTB and programmatic buying still having a few hurdles that they need to clear this method of advertising is quickly taking over online media buying. In order to be ready for the future, you need to start asking yourself is Real-Time buying is right for me?
Publishing and advertising are evolving. We are no longer living in the olden days when an advertiser would approach a publisher and purchase unmeasurable exposure to a roughly defined audience. Changes in technology bring changes to advertising and publishing. Today’s ecosystem of online advertising is a warzone of algorithms, each trying to compete with the other algorithms on who gets to display an ad in the right place at the right time for the right price to its intended audience. What those algorithms do is called Real Time Bidding – RTB. And you, as a publisher, can be making money off this algorithmic war.
What is RTB?
Let’s assume for a moment that there is an advertiser somewhere who is willing to pay you a truckload of cash to show your readers a relevant ad at a specific time. This advertiser may not even be aware you exist, let alone capable of contacting you directly. So how do you bridge the gap between you and the guy with the truck?
With a complex web of Ad Exchanges, DSPs, SSP Data Suppliers, Agency Trading Desks Delivery Tools, Ad Networks, Data Exchanges, DMPs and other solutions. All these companies and technologies exist to create a kind of stock market for ad space inventory and information. The competition over inventory in these networks is aimed at putting the right ad creative at the right spot on the right website for the lowest price for the advertiser and the highest profit for the publisher.
When a user browses your website, the RTB component in your advertising strategy will show them the best ad for them and you. Not only an ad that will be relevant to the user, but also the ad that will most likely get clicked on and bring you the highest possible profit from that specific ad space. Identifying the users, picking the right advertiser, creative and timing for the ad are all processes that happen in milliseconds on RTB servers between warring algorithms bidding on your inventory. That same inventory you invest a lot of time and money trying to sell.
Why RTB Might Not Be For You
While some claim RTB is the present and future of content monetization, others claim it’s the most over-hyped technology ever. There are many concerns for publishers when it comes to implementing RTB in their content monetization strategy. The first and biggest of these concerns is relevant mainly to large premium publishers making a nice profit selling premium inventory through traditional channels. Why mess with all that war of algorithms when there’s a guy with a truckload of cash already waiting for you in the parking lot?
Another relevant concern is data leakage and user security. The RTB process relies, among other things, on serving the right ads to the right users at the right time. During this process, the advertiser can plant a cookie on your user’s computer. He can then target this user with ads on other platforms that may be cheaper than the inventory you offer. This is good for the advertiser and the guy who offers lower floor prices, but not for you.
Yield cannibalization is another concern many publishers worry about. Remember the guy with the cash truck in your parking lot? By using RTB, this guy can bid only half the money in the truck on the same inventory he would have otherwise purchased from you for the whole cash load. And he might win the bid, thus paying you half of what he previously paid you for the same exposure.
Cashing In On RTB
At this point, you already understand that RTB is a good addition to your website monetization strategy. But don’t hurry and fire your direct sales team yet. If you want to get it right and make the most out of the battle of the algorithms, we’ve got a few tips for you.
1. Finding the right partner (or partners)
Much like any relationship, your relationship with your RTB service provider must be a good one. In essence, a good partner is one that will work with you to ensure you have the tools and knowhow to monetize all your unsold ad space inventory.
Such a partner will do so by working with your objectives in inventory yield optimization. At the same time providing you with tools to avoid cannibalization of premium inventory sales and maintain control of your pricing and ad quality.
You need to ensure that the partner you choose offers monetization solutions that integrate with your content (display, mobile, video and even audio ads) as well as your ad server. In addition, the more control you have over blacklisting advertisers or categories, the easier it will be to protect your brand from unwanted ads on your website.