Real time advertising trading takes shape
This year we’re expecting to see around 10% of agency digital ad spend invested into real time buying through Demand Side Platform bidding technology and trading desks. Though still a small proportion of ad spend, the adoption is moving faster than mobile advertising.
So what’s really driving this trend?
The growth in 2012 was driven mainly through audience retargeting from 1st party data. However in 2013 there promises to be more 3rd party allowing a deeper layer of audience targeting that the Ad networks have been so good at harnessing through their network partners. Once this data becomes available through the demand side platforms (DSPs) the ability to truly target the exact audience a client wants on demand becomes very real.
Audience targeting, improved efficiency and automation will be the key drivers over simply pushing down costs. Key publishers, with the exception of Mi9, have been slow coming on board, worrying about their yield and the “rush to the bottom” however they are now all cautiously entering the market mainly through private exchanges with a set floor price. The latest announcement has come from News Limited who have partnered with Rubicon Project to lead “the paradigm shift in how buyers and sellers transact”. The evolution of the Facebook ad exchange will certainly be one to watch this year – how quickly they scale this will be key to growth levels.
More control for publishers, coupled with increased transparency for buyers suggests only increased adoption from all sides, meaning we are on our way to solving that age old marketing adage “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”.
The use of data is key to really unlocking the value of real time buying and publishers and ad networks are already looking at innovative ways of verifying and building out new data opportunities which have to date been limited.
The real value for marketers will be how to marry this with existing customer data and creative optimisation tools to deliver a truly relevant and personalised experience, to deliver on “right place, right message, right time and for the 1st time to the right audience”.
As we move into 2013, we will keep you informed of how DSPs are evolving with the changing digital landscape.