Ad Exchanges vs. Ad Networks

We’re here to help you navigate the often confusing world of advertising. The current online display ad marketplace is significantly more fragmented and complex compared to the advertising marketplaces of the past. When ads are available on a global scale in a marketplace as big as the internet, mechanisms must come into place to help simplify it for buyers and sellers. Thus, the invention of ad networks and ad exchanges came to be. So what are ad networks and ad exchanges anyway?

Ad Networks Collect and Sell

 

Ad networks were created to help marketers who were trying to collect inventory from a seemingly infinite number of websites and publishers. Marketers didn’t have the time or resources to cherry pick ad impressions from each website, so ad networks were created to present a large collection of inventory so marketers could buy impressions quicker, easier, and cheaper. Ad networks are not created equal. Some choose to focus on reach and quantity while others boast the quality of the spots they sell. Either way, ad networks can be a bit skewed – networks aggregate inventory from many publishers and then mark it up and sell it to profit.

 

Ad Exchanges Makes Variety Available

 

The ad exchange could potentially be compared to a stock exchange. While it’s not exactly similar, it does serve as a platform to increase the efficiency of the online ad market by making ad impressions readily available so marketers can search for and choose the ads they want at the price that’s right for them. Like demand-side platforms, ad exchanges seek to add stabilization and transparency to the ad network systems, which caught criticism in the past for being monetized to serve interests of sellers. At the moment, it isn’t able to function like an exact exchange because there is not a natural balance of supply and demand in the online ad marketplace.

Ad Exchange vs. Ad Network

 

If an ad network is like a closed group of privately traded ads, an ad exchange could be compared to an open network where buyers can see all the options available. However, ad networks often come to ad exchanges to buy bulk ad impressions to re-sell, which does create a level of inequality in the ad exchange market. Overall, an ad exchange can be seen as offering variety, while ad networks offer specialized groups of ads that cater to a marketer’s needs. Ad networks may take the trouble out of searching, but they also display inaccurate costs to include profit for the network providers.

The key to making the online ad marketplace run smoothly is transparency and reliable Marketing Intelligence. Once buyers and sellers are able to see where profit is being made and make decisions based on where an ad impression will appear, the quality of the publisher, and the profit margin, transactions can go smoothly, just as they do in any other exchange. At AdClarity we strive to achieve this very goal by bringing honest data so agencies, publishers, and advertisers can use it to get the best deal possible.

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

Request a guided tour of AdClarity.

 

 

 

Ad Injections 101

Have you ever downloaded a file off the internet? You know what I’m talking about. When you have the “run” and “install” pop-ups and the 5 million page terms and conditions that none of us EVER read.[1] Well… if you’re downloading these kind of apps on your work computer and then doing QA or checking geo-targeted ads and content, then you may be giving completely inaccurate information to your clients. No. You are definitely giving completely inaccurate information to your clients.

So… what exactly am I talking about?

I don’t know if you’ve hear of this little bastard, but I’m talking about ad injectors. Ad injectors insert ads into others’ sites, without permission from those sites and without payment to those sites.[2] Say what!? That seems unreal. Well. It’s not and here’s exactly what’s happening.

When you download apps off the internet, they will bundle themselves into an installer which will persuade you to install additional programs onto your computer. This is where not reading the terms and conditions or the pop-ups and just clicking “next” “next” “next” come in. So really, when you think you’re getting what you were looking for, you are… but you’re also getting much more than you expected.

So let’s say you search Google.com for “boots”; Google will come back with results less than seconds later, but in even less time, the ad injector will push forth results of its own and replace the ads that Google, more importantly the brand that paid for the these ads, present. In the case of the search results, it will often say enhanced results on the top. But in fact, these aren’t enhanced results at all. They’re ads! And, as usual, when you click these ads, the advertiser will be charged a fee.

Ok, so who gets paid here?

Normally, the money would go to Google, right? But Google isn’t making any money here. Why? Because the ads were never put up by Google in the first place. The ads belong to an entirely independent third party service who hijacked the Google search page and placed their own ads as a way of making money. So let’s reiterate this- the ads on Google have not actually been placed there by Google!

Why do advertisers do this?

Well, this is a very attractive scheme to advertisers because now they are being offered inventory in places they would have never been offered before! For example, not too long ago, a Target ad actually showed up on Walmart’s homepage. If that’s not a shocker, then I don’t know what is.

Why do Ad Injectors do this?

On one hand, ad injectors could sell inventory directly to the publishers. In fact. If the price is good enough, advertisers may even say yes. It would indeed be more appealing to advertisers as these ad injectors would be able to offer up space that would otherwise be impossible to attain i.e. Walmart or Wikipedia. Additionally, the spots on the page (above the fold, main banner) would definitely be an attractive aspect to advertisers.

But this isn’t what ad injectors do at all. Rather, they work through an intricate and complex web of ad networks, exchanges and other mediators. There are many benefits to these mediators, the strongest being the ability to increase efficiency. However, because these webs are so complex, the advertiser may be going through 3 or 4 mediators before getting to their publisher. The advertiser may never even suspect that they are going through an ad injector!

Why could this be problematic?

If you have an ad injector installed on your computer and you’re doing QA for your company or for a client and the purpose of this QA is to deliver information regarding geo-targeted content or ads, nothing you will see will most likely be accurate. That means that snapshots of the sites you send with the ads may be completely different, leading you to be an inaccurate and unreliable source of information in the eyes of your client.

So…

Before you continue downloading anymore free apps, realize that these ad injections are ruining your internet experience. Be cautious and aware and make sure to always read the fine print.

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

Request a guided tour of AdClarity.

 

 

 

[1] See… I told you so.

[2] http://www.benedelman.org/injectors/

Real-Time Bidding for Dummies

Since 2002, when Real-time Bidding (RTB) came into existence, the online advertising industry has been revolutionized. Unlike traditional online display advertising, which proved too inefficient and costly (for all players in the field), Real time bidding shows the right ads to the right people at the right time. The real problem in regards to the traditional methods were that advertisers were using a CPM model to buy their impressions; which means you are buying a bulk of impressions for the same price per unit, even though each impression has a different value. For publishers, this was inefficient because they were unable to sell up to 70% of their inventory, and the inventory that they did sell was sold for way below the market value.

So Real time bidding appeared in the picture and things began to change for the better.

Real time bidding revolutionized the way online media is done because it allowed for advertisers to purchase their inventory based on individual impressions through an automated bidding system. This means that the publisher is getting the most bang for their buck and that the advertiser doesn’t need to worry about reaching unwanted audiences. Both parties win!

How does Real time bidding  work?

There are 4 major players in Real time bidding:

Demand Side Platform (DSP) – The DSP enabled advertisers to gain access to multiple sources of inventory and makes the bid for them automatically, based on buying parameters the advertiser has preset.

Publisher- This one’s easy; the publisher supplies the inventory. In the earlier days, publishers would only supply remnant inventory to the DSP’s, but as demand began to grow from the advertisers, publishers are now supplying their most premium inventory as well!

Supply Side Platform (SSP) – The SSP is a tool which helps publishers manage their inventory.

Ad Exchange: This is the tool that actually connects the advertisers with the publishers and vice versa. It facilitates in the purchasing of inventory in real-time milliseconds before a page loads.

Keep talkin’…

Without getting too technical, here is the most basic process of an Real time bidding.

  1. The publisher provides inventory to their Ad Exchange
  2. The advertiser sets their buying criteria on the DSP, which will eventually place the bid on each impression on behalf of the advertisers
  3. The value of the bid is based on the value of that individual impressions, which has been predetermined by the advertiser’s criteria with the DSP; this bidding process ensures that the publisher is getting the maximum price for their inventory, as dictated by market demand
  4. Once the bidding is completed, the impression goes to the highest bidder and their ads are served on the publisher’s site!

Advantages of Real Time Bidding

Real time bidding  definitely wins over traditional online advertising. It makes efficient and economical what was not before and alleviates pains for both parties involved in the process.

Advertisers: Advertisers see immediate results as they are not frivolously spending their money on ads that are not targeted at the right audience. They have much better consumer targeting capabilities, have a great cost effective reach, and can nearly eliminate the number of wasted impressions and wasted dollars

Publishers: Now, instead of having an abundance of unsold inventory or inventory that is sold at a price below market value, publishers are able to gain a higher revenue through a process that is designed to maximize the value of each individual impression

Agencies: Like advertisers, agencies now have much more control over their campaign’s performance, have more efficient spending, and can deliver better results to their clients. And we all know that happy clients can only be good for your business

So you see, Real time bidding really IS revolutionizing the way online advertising is done. All players really get the best out of the situation, no matter what side they’re one.

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

Request a guided tour of AdClarity.

Why Choosing the Wrong Proxy Server Could Cost You Your Job!

Alright, let’s get something straight.

Think you’re getting a good deal when you’re using that “free” proxy server? (Note: that was sarcasm) Let me tell you something. For a proxy to provide unblocked internet access, a server needs a ton of bandwith to send information back and forth to the user. The thing is that bandwith costs a lot of money (and I mean A LOT)—and they need A LOT of bandwith. Plus, they need to hire maintenance, security, operations, and so forth. So why would they be spending all this money to create a FREE service? Because it’s not free.

The Tragedy of the Commons

Quick history lesson:

The tragedy of the commons is a theory by Garrett Hardin, according to which individuals, acting independently and rationally according to each one’s self-interest, behave contrary to the whole group’s long-term best interests by depleting some common resource.[1]

So, in our scenario, the common is actually the proxy server and the people are, well, the people that are using the proxy server. When you make something available to the public at minimal or no cost people will take advantage of it (yeah, yeah, I already know how you’re going to argue about the Canadian healthcare system).

So if your proxy server is a public one and you’ve discovered them, then it’s most likely that tons of other people have discovered it as well. Which means that within a few hours the server will be so overwhelmed, it will move at a snail’s pace and will eventually crash.[2]

Bad, bad, bad people out there

There are good people in the world and bad people in the world. And unfortunately, you may not be able to differentiate between them in online world. Proxy servers are famous for being created by people with not tshutterstock_94777456he best intentions. Many of them are using these servers for illegal or “risqué” activity which you can, in turn, be associated with. Plus, a lot of these hackers set up these servers so that they can monitor them and spy on your internet activity. Meaning that they can have access to ALL of your private information such as your passwords, email, and credit card information. These criminals can use your information for their own private purposes or sell your information to other criminals.

If you’re in the QA business then “spying on your activity” may be what caught your eye. Why?

Bad QA is No QA

If you’re doing QA for your company and your job is to make sure that the right ads are appearing in the right locations (aka geotargeted ads) or the appropriate content is on the relevant website, then you need to make sure you’re using a reliable and accurate proxy server. Why?

A lot of the freemium proxy servers actually sell your information to third party services or save your browsing history from previous website visits in different IPs.

Why is this troubling?shutterstock_150870665

Well, let’s say you happen to LOVE giraffes and all you do all day is Google different interesting facts about giraffes. Well, when you finally have to get some work done and you change IPs to, let’s say France, then rather than seeing the correct ads pop up, you’ll see targeted ads- ads concerning giraffes. You won’t surf the web as a local user, per say, because you won’t be seeing exactly what someone in France would be seeing. Which means that the information you will be given is false and inaccurate. Which means that you can’t relay information to yourself or your clients with confidence.

Not good.

Most free proxy servers have no privacy policies at all, which means you have absolutely no idea what they are doing with your data. On the other hand, it’s in the interest of a commercial proxy server to protect your privacy, so they do this with pure diligence.

The Customer is Always Right

Look, customer service exists for a reason. And even when technology takes over every aspect of our lives, customer service will still exist and be operated by real live humans.

When you’re using a service, you need to make sure it works. And if you do happen to bump into any technical difficulties along the way, customer service is your savior.

Well, when you’re using a free proxy service, there is NO customer service. You are not a customer- you’re just another user to them. Which means there is nobody to complain to, except for other users (ever notice an influx of these forums with all these problems. That’s the best service you’re going to get). And when you run into these problems, there is nobody there to care or to help you. This means you’re going to waste several hours of your day figuring out which free proxy service you need to use next in order to get your work done by the 9 pm deadline.

Lesson Learned

Stop wasting your time by looking for a free proxy server. We’ve already established that they don’t really exist because you, as the user, will eventually pay in some way or another. If you’re serious about changing IP addresses or need this for work, then get serious about it and invest in a premium proxy server. Because sharing false information with a client can cost you your job.

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

Request a guided tour of AdClarity.

 

 

[1] http://en.wikipedia.org/wiki/Tragedy_of_the_commons

[2] https://www.distilled.net/blog/miscellaneous/proxy-server-essential-information-for-seos/

Is Your Mobile Site Fast Enough? How to Run a Regression Analysis to Find Out

So what’s the big deal about mobile? Like almost anything that gives us pleasure, it’s the instant gratification aspect of it that gets us. With just one click we can order movie tickets, check the weather, check our email, our Facebook… you get the point.

But what’s the one thing that really irks us when we’re trying to get stuff done on our phone? Let’s all say it together:

“WHEN THE PAGE TAKES TOO LONG TO LOAD!”

If your page takes a long time to load, your customers will get frustrated and impatient and change sites without even thinking twice. Ooops! There goes any potential revenue! Think we’re exaggerating? Think again.

We decided to see how strong the relationship (and if there even was) was between the time it takes a mobile site to load and the revenue from the corresponding e-commerce site.

You may be saying to yourself, “yeah, yeah, I get it. But HOW can I find these relationships without just making blank assumptions?”

The answer is simple. A regression analysis.

Let’s start at the basics. What in the world IS a regression analysis?

A regression analysis is used in statistics to figure out if there is a relationship, or correlation, between variables.

Even though today we will be focusing on finding a relationship between mobile e-commerce sales and the loading time of a mobile site, you can use regression analysis to measure the relationship of almost anything all you need is one independent variable (the time it takes the page to load), a dependent variable (e-commerce sales), and a decent sample size.

Note- the dependent variable is named this because its value completely depends on the value and behavior of the independent variable.[1]

To determine if there is a relationship between the variables, there are a few things you’ve got to look out for:

1)      The best-fitting line

2)      Correlation coefficient (r)

Best-fitting line

There are three types of lines you need to know about in order to understand the trend of your data.

Linear: The linear regression consists of a straight line through the data points. In the figure below, the black line is the regression line and shows the predicted scores of Y for every possible value for X. The vertical lines going from the regression line to the points is called the error of prediction. When the distance between the data point and the line are small, that means the error of prediction is small. If your data follows a linear line, it means you are growing at a steady pace.

figure 1

Exponential: The exponential model shows you if your data is growing at an exponential rate. This means that as the value of x increases, so does the value of f(x), making it an increasing function.

figure 2

Logarithmic: The logarithmic line is a curve that plateaus over time. You are increasing at a slower and slower rate until you stop completely and reach a plateau where you wouldn’t expect to grow anymore. This function is the opposite of the exponential function, although it is still an increasing function. However, as the x increases, the increase values get slower and slower.

figure 3

 

Correlation Coefficient (R)

The correlation coefficient, or R, is used to measure the strength of the linear relationship between two variables. The scale ranges from -1 to 1, with -1 being a perfect negative relationship and 1 being a perfect positive relationship. The closer the number is to 0, the less likely there is a strong relationship between the two variables.

Finding out if there is a correlation between time it takes a mobile site to load and e-commerce sales

In order to find out if there is a relationship between the two variables, you need to run a regression analysis with the aforementioned lines and then compare their R values. The graph with the R closest to 1 will be your best fit. If you find that none of them are close to 1, then maybe there is no relationship. You can go and gather more data and run it again, but sometimes you can’t show what’s not there!

Alright, let’s begin.

Here’s how you can run a regression analysis on Excel

Step 1: Get your data in Excel

We collected the data of the top mobile e-commerce companies and their loading page time and simply put the values in our excel sheet.[2]

figure 4

 

Step 2: Highlight the data and create a scatter plot

Simply to go insert, and choose the scatter plot from the graphs!

 

figure 6

Step 3: Insert a line

On the right side of the graph there is a plus sign where you can add chart elements. Click on it and choose trendline. Because there is a seemingly linear relationship for this specific data, the linear line is automatically placed as the trend line.

figure 7

 

Step 4: Testing the other best-fitting lines

In order to test the exponential and logarithmic lines, simply click on the plus sign again and scroll down to the trendline. There should be an arrow pointing to additional options. Go ahead and follow that until a format trendline option pops up on the right side of the excel sheet.

From there, you can choose what type of trendline you want to show in the graph. Additionally, if you scroll all the way to the bottom, you will see an option for the R value to be posted on the chart. Definitely click this.

Linear:

figure 8

Exponential:

figure 9

Logarithmic:

figure 10

We see that the logarithmic line is the strongest with an R value of .9674, showing an extremely high correlation between the two variable. This means that the rate of change in the data is decreasing quickly and then levels out. We would most likely be able to see this if we provided additional data that focused on the sites that took a long time to load.

What can we conclude?

We see that there is in fact a strong relationship between mobile e-commerce sales and the time it takes a mobile site to load. As the site takes longer to load, the smaller your sales will be!

What about you? What are you trying to figure out?

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

Request a guided tour of AdClarity.

 

[1] http://www.sosmath.com/algebra/logs/log4/log42/log42.html

[2]  The data should be normalized or standardized to bring all of the variables into proportion with one another.

Real-Time Bidding- What Is It and Why Should I Care?

The problem with traditional display advertising is that it has become an inefficient and costly process, both for advertisers and publishers. Publishers aren’t able to sell most of their inventory (about 70%) and the inventory they do sell is sold for way too low a cost. Advertisers on the other hand, are also losing money through CPM deals as not every impression is made equal. Different impressions have different values and many times “advertisers lose by not generating a good ROI on their display marketing budgets primarily because the impressions are not targeted and majority of impressions are delivered to visitors who do not match the target profile of the advertiser, not to mention lost impressions which aren’t visible to users while being served below the fold or in rarely visited pages on the publisher site.”[1]

So what’s the solution? Real-Time Bidding (RTB)

Real-Time Bidding is an automated advertising process which lets publishers sell ad impressions through an ad exchange or DSP platforms. Each impression is sold individually to an advertiser as it becomes available, all in real time. In addition to being supplied with user data, the advertiser can make a bid per impression which improves ad targeting and allows for a more efficient and effective advertising campaign.

How did the traditional model look like? fffOriginally, the publisher would send his available inventory to a mediator, in this case an ad exchange, network, or agency) and the advertiser would purchase in bulk, usually using CPM deals, to serve his ads on the site.

The problem with this is not only those issues that we addressed in the first paragraph, but also that the advertisers and publishers are actually limited by these mediators. The advertiser gets a limited amount of sites to choose from and most of those will most likely be irrelevant. Additionally, the sites may not provide information about individual users- only generic demographic information. Another downside lies on variety of technologies each individual ad-network deploys, creating big differences with optimization algorithms and targeting capabilities between them and thus impose a long exhausting evaluation process for each network separately. Also, the variety of those ad-networks results quite a cumbersome process managing campaigns in multiple ad-networks simultaneously, creating a huge burden on the advertiser side.

The RTB model

The RTB model is different from the traditional display advertising model because it changes the way the system works by implementing new more efficient and effective processes which enable the publisher and advertiser to get the most bang for their buck.

Advertisers and DSP

Advertisers use new breed of ad networks called a Demand Side Platform (DSP), which give buyers direct access to multiple sources of inventory, allowing them to purchase impressions in an automated manner. Originally, ads were bought and sold buy actual media buyers and sales people, which was timely, costly, and… unreliable. DSP removes the people from the process, as well as the need to negotiate ad rates and to manually fax ad insertion orders.[2]

Okay, so how does a DSP actually work?

In short, the DSP enables advertisers to buy impressions from a spread of publisher sites, “but targeted to specific users based on information such as their location and previous browsing history.”[3] Publishers send their available inventory, along with the user’s cookies, to an ad exchange, which automatically sends it to the DSP. The DSP then decides, using complicated algorithms, which impressions makes the most sense for the advertiser to buy based on previous parameters that the advertiser put in. The DSP places the bid for the advertiser and the highest bidder gets served on that side for that impression.

Publishers and SSP

Publishers use something called a Supply Side Platform (SSP), which is pretty much the DSP for sellers. Whereas DSPs are created for advertisers to buy their impressions in the cheapest and most efficient manners, SSPs enable publishers to do just the opposite- to maximize the price of each impression they sell.

Okay, so how does a SSP actually work?

SSPs let publishers connect all their sites and inventory to multiple mediators, such as ad exchanges and networks, and DSPs all at once. This overcomes the limitations when a publisher can connect only a certain number of sites to one network. Due to the abundance of inventory in the ad exchanges, the specific targeting, and the bid per impression, there is a great demand which results in the highest possible rates for this ad space.

When the SSP sends the inventory information (including user information) to the ad exchange, the information goes straight to the DSP. The DSP in return analyzes the ad and purchases it on behalf of certain advertisers (based on the preconceived parameters they insisted upon).  By opening up impressions to as many advertisers and buyers as possible, and through real-time auctions, publishers can maximize the revenues they receive for their inventory.[4]

The Process

As soon as a user clicks on a site, all of their details including demographics, browsing history and page environment, is sent to an SSP. This information is then sent to the ad exchange where the request for an ad bid is formed. The ad request with all the ad parameters is then sent to the DSP, where the advertisers value the impression. Based on their premeditated parameters, the DSP automatically analyzes the bid in real time based on its own specific criteria and places the bid. The impression goes to the highest bidder and their ad is served on the page.

In order to better understand the process of RTB, it’s best to show an example:

Mark is a user who is very interested in running shoes; he spends a lot of time on running websites, running accessories websites, and running shoes websites. While browsing the web, Mark runs into a site that uses RTB ads. In the meantime, two different running shoe companies have bot demonstrated interested in a user like this. The DSP recognizes the compatibility between the user’s profile and the parameters of the advertisers. Both companies end up bidding against each other. Unfortunately, only one company will place the highest bid and their ad will be served on the site.  

Advantages

RTB definitely wins when it comes to a comparison between itself and traditional online advertising.

Why?

RTB makes efficient and economical what was not before; the process alleviated pains for both parties involved in the advertising process. With traditional online advertising, the advertiser must buy impressions in bulk. These impressions may come from many different websites, not all which target their audience, but are all priced to the same CPM. Therefore, not every impressions carries the same value, nor are the impressions negotiable. One of the advertiser’s biggest pains in regards to this process is the lack of transparency. They are unaware of where their impressions are actually displayed on the site.

According to AdPushup.com,

there is direct interaction between the supply and demand forces which determine the prices of the impressions directly in the free market, thus completely removing the negative impact of negotiation and lack of transparency and enabling the market forces to be the only drivers of the price, which benefits both – The Advertisers (they are protected from be over charged) and the Publishers (who realize the true potential for their inventory). Moreover, the ability to auction for individual impressions leads to a fragmentation of the market, leading to equilibrium prices that benefits both the publishers and the advertisers.

With RTB, the advertiser is able to pay per impression and channel their advertising budget to their direct target audiences. This eliminates the spending on advertising which is not directed at their target audience. This additional spending can now be used as an additional resource to in order to place premium bids on the ads that will be directed towards their target audience. This in turn offers high conversion rates and an increased in ROI.

RTB also provides for a more transparent online advertising model and lets advertisers control exactly which websites they want their ads displayed on, improving the CTR.[5]

Publishers have also felt the impacts of RTB. Because the ads are more targeted and effective, advertisers are willing to pay more. Publishers that use RTB have said they have seen a 15-300% increase in ad prices with a median growth rate of 100%.[6]

Conclusion

RTB is revolutionizing the way people do online advertising. The fact that it has been able to eliminate the human to human interaction (which is timely and inefficient), has made the traditional method of advertising almost irrelevant. Advertisers can now purchase inventory based on their needs rather than obligations, and publishers can now obtain the highest price for their inventory.

Looks like everyone’s a winner!

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

Request a guided tour of AdClarity.

 

[1] http://www.adpushup.com/blog/the-ultimate-guide-to-real-time-bidding/ [2] http://digiday.com/platforms/wtf-demand-side-platform/ [3] http://digiday.com/platforms/wtf-demand-side-platform/ [4] http://digiday.com/platforms/wtf-demand-side-platform/ [5] http://www.adpushup.com/blog/the-ultimate-guide-to-real-time-bidding/ [6] http://www.adpushup.com/blog/the-ultimate-guide-to-real-time-bidding/

Using Media Intelligence to Optimize Your ROI

Don’t spend more – spend smart

Marketeers are always looking for ways to cut back on their spend. The amount of time and money it takes to plan an effective campaign is enormous. You must go through tons of planning, a/b testing and failures to even find out something as simple as who your real target audience is. At the end, the longer you plan, the longer you’re not in the right marketplace and that means that you’re losing potential revenue, someone could introduce a similar idea before you do, and you can fall out of step. So why do advertisers continuously spend tons of resources planning every single move and strategy from scratch when they could be building off the success of their competitors and avoiding their failed initiatives?

Stop planning – start studying

If you are an advertiser, you probably know that Google Search  is one of the most popular forms of advertising on the internet. Thousands of businesses use Google Search ads every day to promote their campaigns, products, and services. But how do these brands use Google Search to optimize their campaign performance? In all honesty, much of the work behind the campaigns is pure guesswork. Advertisers rarely know if their campaigns will draw a potential customer in to fill out a form or subscribe to a service. So how do companies produce winning ads with a high quality score? Let’s take Marketo, for example. Say you’re the marketing manager at Marketo and you are about to launch a campaign. You have probably invested in a lot of expensive and comprehensive research on A/B testing (or a lot of fails). You launch your campaign and mismatch your target audience. You launch it again and realize your creative is not attracting the right crowd. This goes on and on for months until you figure out exactly how to optimize your campaign. Even the biggest brands with the most resources will often go through a six month period where they have to constantly optimize their campaigns and creatives in order to find the most successful keywords, ad texts, creatives and bids. During these six months, huge amounts of resources are exhausted just to discover that the campaign is not working as planned; perhaps they reached a target audience that is interested in the product but is not ready to purchase it yet or maybe the publisher that the advertiser was using is not producing expected results. The brand may plan relentlessly and may think they know exactly how to manipulate their campaign and still their results would be minimal.

What if we told you

There was a way to avoid that six month sluggish period, and rather than starting your campaign from scratch, you would already know where to publish your ads, who your ripe target audience is, what is the optimized cost of a bid, and what type of creative to use?

Use Online Media Intelligence

Online Media Intelligence helps you build on your competitors’ successful campaigns, find out which publisher site converts best, target your ads effectively, and, ultimately, reach more of your advertising goals with a higher ROI. Instead of spending more, you’ll be ableto use online media intelligence to start spending smart.

What now?

With AdClarity you’ll be able to utilize all of your competitors’ expensive and comprehensive optimizations and A/B testing to find out what their failed campaigns were all about and avoid those same mistakes.gains and benefits

Increase your marketing ROI

With the use of AdClarity’s online media intelligence, you’ll be able to avoid the six month optimization period of wasting invaluable resources such as time, budgets and man power. By using AdClarity you’ll be able to launch a successful online campaign that sets you apart from your competitors and gives you a competitive advantage.

 

About AdClarity

AdClarity is a Marketing Intelligence tool which provides online marketers with actionable insights about their competitors’ advertising activities. Driven by big data and proprietary behavioral content discovery technology, AdClarity unveils brands’ campaigns, ad creatives, impressions, and spend data across multiple channels, including Display, Mobile Web, Mobile Apps and Video. Data is collected across 20 geographies and covers over 50M URLs daily while discovering over 40K new campaigns every day. The AdClarity product suite is used by over 7,000 media and advertising professionals globally in Fortune 500 Brands, Agencies, Ad Networks, and Publishers.

 

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