Australasian Association for Information, Communication Technology

Australasian Association for Information, Communication Technology

Real Time Bidding Is Set to Explode

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Real Time Bidding Is Set to Explode

After solid growth for multiple years in the online advertising field, Real Time Bidding (RTB) seems to be positioned for a real explosion in the coming years. Without eliminating the other forms of online advertising such as PPC (Pay for Click), CPA (Cost per Acquisition) or even Google AdWords, Real Time Bidding (RTB) looks more and more like the present and the future than anything out on the horizon.

There are several reasons for this explosion in growth including the abilities of Real Time Bidding in the past few years to go beyond just placing the ad in the right place and the right time. Demand Side Platforms, Supply Side Platforms, Ad Networks and agency trading desks all add to the success and the demand for RTB (Real Time Bidding).

RTB had developed into much more than an auction house for online advertising as it started out. Instead the data collection and targeting ability of Real Time Bidding has moved it into another level all together. Yet its characteristic auction set up is another reason for the success and the expected explosion in.

Real Time Bidding is important and popular because it is in contrast to traditional display ad sales. With Real TimeBidding there is no publisher  to negotiate with and no buying of a specific number of display ads or impressions to be placed sporadically in any open website or search space. With the traditional display ads there’s not much flexibility in respect to where and when your ads land. Therefore there is little to no flexibility in respect to optimization of ads as well. Because of this there is a high probability that you are wasting you money with traditional display ads. If you displaying high value product than make sure that you consult with the luxury advertising company for better add placement.

The second advantage that Real Time Bidding (RTB) has is the ability to collect data regarding where your customers have been online, what seems important to you regarding what your customers like or don’t like. You are able to bid on ad placement only when your potential customers are available and online. In this way you do not waste your money placing ad where or when no potential customers are available.

When you put this available data together with the auction format, you have an incredibly power system for online ad placements and display. Advertisers get a whole lot more bang for their buck than anywhere else. The ROI (Return on Investment) is excellent.

Following the launch of the Real Time Bidding campaign the advertiser has the ability to optimize their campaigns using all the data that is available from the platforms. With the real time optimization, changes can be made to your campaign almost on a dime in order to improve the click-through rate.

All of this allows advertisers and online industry leaders to move from focusing on keywords to focusing on their targeted audience. The RTO (Return on Investment) will be much higher for these campaigns than was possible with the traditional display ads.

You can already see the explosion in growth over the past five to seven years with serious growth projections for the future. There was a surge in ads sales online through RTB in 2009 and 2010. Then with the advent of platforms such as DSP (Demand Side Platform), Agency Trading desks, Ad Networks and SSP (Supply Side Platforms) there was even more growth.

Finally from 2010 to 2011 the market for RTB (Real Time Bidding) online ad sales increased 60%. Add to that the expected 100% to 200% increase in ad sales online across the DSP and SSP platforms in the next year or so and you have a tremendous jump in sales. All of this together makes the explosive growth of RTB generated online ad sales all but inevitable.