Pros and cons of real-time bidding for publishers

1 March 2016

If you are publishers here are some benefits you can gain with the automated auction of ad impressions.

Budget planning

Yes, a lot of companies today pay for ad impressions, but even greater amount have already switched to supply-side platform (SSP) to enable RTB and gaining even greater value. This way they get a precise price and an opportunity to extract value from each impression in real-time.

On the other hand some will say that it’s a little bit insane to provide a publishers with an exact number, that you’re planning to spend and to expect the equivalent value.

No more ad space downtime

Previously unwanted ad space is becoming valuable due to the arrival of target visitor, which triggers a real-time auctions. According to The Econsultancy Online Publishers Report remnant inventory usage increased 1-10% in almost half cases and 10% of publishers indicated that remnant revenue rose by over 50%. And these figures resulted by RTB. And only 5% of publishers didn’t spot the difference.

Precision of settings

With SSP publishers can control RTB campaigns and apply to it all their business rules and limitations for particular unwanted advertisers. And this can be set easier and more specific than traditional blacklists. Publishers always have an ability to set or adjust pricing and to have a better way for management of an entire inventory.

Audience insight

With RTB publishers gaining a better opportunity for analyzing what specific segment of the audience are best performing. This data can be used for further adjustments and targeting to maximize the value of a publisher’s audience and building long-term relationships with high-value customers.

Again, per contra, many think that RTB leads to ad blockers and distrust and that this type of sales exist only due to less satisfactory work of sales and presales. And that usage of RTB isn’t that good if publishers will work on restoring the publisher-advertiser relationship. RTB companies are nothing more but third party in the middle of the process.

Premium inventory management

Publishers can provide premium advertisers with transparency, controls and data protection using RTB.

Thus they can use private marketplaces to encourage advertisers to reach a required amount for exclusive access to the premium segment.

Direct sales

Supply-side platforms provide publishers with a more precise picture of what they are selling, what are their targeting and what price works better. Using RTB campaigns publishers can inform direct sales pricing and strategy.

Bottom line, the traditional process of ad buying involves proposals, human negotiations and manual insertion orders. Programmatic advertising suggests you efficiency, effectiveness, adjustability and less human factor and less time spend. Pro technical is that the traditional process of ad buying involves proposals, human negotiations and manual insertion orders. Programmatic advertising suggests you efficiency, effectiveness, adjustability and less human factor and less time spend. And pro direct relationships, aware publishers, that ask us not to rush into programmatic future until its algorithms are perfect.

 

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