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The RTB Advertising Advantage

What’s the uptake for Real Time Bidding (RTB) in online advertising so far?

An eMarketer article forecast RTB spending  at just $1 billion in 2011, a fraction of current online ad spend but an increase of 203% over RTB spend in 2010. The long term forecast is for RTB spending to grow to $5 billion by 2015.

Why is the demand for real-time bidding increasing?

RTB is more transparent. This form of customized, “real time” media buying is a paradigm shift, from confrontational to collaborative interaction between buyers and sellers over ad placements and to set achievable targets.

RTB provides strategic value. More traditional CPM-based relationships are focused on negotiating for the lowest cost to achieve greater ROI, rather than focusing on achieving strategic value even if it means a higher CPA. RTB buying focuses on only the impressions it wants at a price determined for each subset of impressions, rather than aggregating an up-front price for a block of impressions.

RTB provides improved performance through targeting. Impressions are not all created equal; different advertising placements, and the days and times/time of year of placement, may influence customers differently.

RTB is a great market research tool. If you’re a marketer who wants to try before your premium buy, RTB is an affordable way to test different strategies and a promotion’s effectiveness, with different market segments, content channels and sites.

RTB requires insight, not just automation. Large volumes of data must be processed, and purchasing attribution models applied, through a digital platform that has the ability to drive results on a local to global scale. Buyers must invest in both the digital platforms and the attribution models to better account for how and why people buy, which ultimately accounts for the effectiveness of your RTB ad spend.

Stay ahead of the game. The Global Coupon platform provides you with the ability to cost efficiently place local to global brand offers and advertising in front of your target audience, and will introduce a form of integrated RTB advertising functionality in spring 2013.

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