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The 5-Minute Real-Time Bidding (RTB) Primer
225 Bush St., Suite 1150, San Francisco, CA 94104 | 866.497.5505 | www.bizo.com | Follow us on Twitter: @bizo
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WHAT IS REAL-TIME BIDDING?Real-time bidding (RTB) is an innovative way for marketers to reach the specific
audience segments they are targeting through an online auction system, one
impression at a time.
Real-time bidding services give you access to inventory from multiple sources
simultaneously. As each impression is delivered, an ad exchange API analyzes the data
about the user available through cookie targeting, which may include location, industry,
and even job title; it can also determine whether or not the individual has previously
visited the company’s site. A real-time bid manager is then used to evaluate the data
available for each impression, and automatically places a pre-determined, maximum
bid for the impression if it meets your desired criteria. If you are the highest bidder,
your ad will be displayed to that prospect.
For instance, a retailer specializing in Apple accessories and an electronics
manufacturer may both be interested in targeting users who frequently view
technology-related blogs. RTB allows these advertisers to locate users who match that
target profile and submit a maximum price bid to deliver an impression, with the ad
delivered by the highest bidder.
WHY USE REAL-TIME BIDDING?Real-time bidding has many benefits for marketers, including:
» Access to more high quality leads
By analyzing inventory on a per-impression
basis, you have the capability to reach only the
high-value prospects you are seeking, rather
than purchasing bulk impressions through
an ad network or publisher, which delivers
impressions to a broader audience that is less
likely to fit your company’s ideal consumer
demographic.
» Cost-efficiency
When using a real-time bidding system, you’ll set a price cap for each impression,
as well as a budget for your entire RTB campaign. Often, your ad will be purchased
for a lower amount than your maximum rate, depending on your competitors’ bids.
This approach delivers higher value than traditional display ad campaigns. In one
case study, an advertiser was able to win 52 percent more impressions through
RTB advertising than through traditional display.1
BY ANALYZING
INVENTORY ON A PER-
IMPRESSION BASIS, YOU
HAVE THE CAPABILITY TO
REACH ONLY THE HIGH-
VALUE PROSPECTS YOU
ARE SEEKING
1 http://blog.bizo.com/blog/product-development/realtimebidding
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» Opportunities for greater campaign optimization
Real-time bidding can provide you with highly detailed analytics insights about
your prospects. You’ll be able to use this data to determine the most effective
strategies for reaching specific segments of your target market, and optimize
future campaigns to deliver greater results.
4 TIPS FOR OPTIMIZING RTB CAMPAIGNS EFFECTIVELYWhen managing an RTB campaign, carefully consider your target parameters for each
campaign. A number of targeting options are available:
1 Targeting users who have previously visited your site or clicked on your ad
This practice, also known as ad retargeting, is a simple way to recapture prospects
who have already entered your marketing funnel and are more likely to make a
purchase.
2 Targeting multiple data types
Many real-time bidding platforms allow marketers to set parameters according to
a wide range of variables, including location (city, state, country), type of ad slot,
site URL or vertical, and more. The more specific you make your criteria, the fewer
impressions you will serve, but the more relevant your campaign will be.
3 Targeting multiple weighted parameters
In addition to targeting multiple segments, you can weigh your CPM bid according
to the value of each data point to your company: For instance, if you’re promoting
a B2B web service for CFOs, you might offer one CPM value for general business
targets, and a higher CPM for those whom you can determine are in finance-
related positions. Weighting your parameters will help to ensure that you are able
to make the bulk inventory purchases you want, while maintaining the relevance of
all of your prospects.
4 Working with a premium RTB platform
As RTB grows in popularity, it is becoming more difficult to verify the quality of
each ad exchange and its audience. In order to reach a sophisticated B2B audience,
consider investing your marketing spend on a premium RTB platform geared
for your target market. The differences are substantial: Bizo’s Business Audience
Exchange delivered 33% more quality leads than its general competitors, and the
cost per lead was 67% lower than on other platforms.2
2 http://blog.bizo.com/blog/product-development/realtimebidding
THE FUTURE OF REAL-TIME BIDDINGReal-time bidding first came into prominence in 2009, and has rapidly gained market
share since that time: The percent of available RTB ad inventory sold through Google’s
DoubleClick Ad Exchange jumped from 8 percent in January 2010 to 68 percent in May
20113, and real-time bidding now accounts for between 30 and 40 percent of all online
ad spends.4
Marketers are choosing to deliver ad impressions
through real-time bidding due in large part to
the platform’s nearly unlimited customization
options and the valuable data insights that the
platform offers.
RTB’s rapid growth shows no signs of slowing
down: Forrester Consulting estimates that the
market will grow from $190 million in 2011 to $387
million in 2013. While RTB advertising should not
replace traditional display advertising, it can
serve as a powerful supplement to your existing
ad campaign.
HOW TO GET STARTEDAlthough it’s possible to directly access ad exchanges via online platforms known
as demand-side platforms and trading desks, this is not an ideal method for most
marketers to optimize their online advertising campaigns. There is a high level of
complexity involved in managing real-time bids, and marketers who lack this
specific expertise may not be making the most relevant buys or managing
budgets appropriately.
In order to optimize your campaign spend, it can be helpful to partner with an
organization with specific expertise in the RTB market. Such a partner can help
you to target the appropriate prospects, maximize your spends, and ensure that
you are getting the most out of the sophisticated possibilities offered by a
real-time bidding system.
Interested in learning even more? Visit online at www.bizo.com/resources or call 1.866.497.5505
225 Bush St., Suite 1150, San Francisco, CA 94104 | 866.497.5505 | www.bizo.com | Follow us on Twitter: @bizo
MARKETERS ARE
CHOOSING TO DELIVER
AD IMPRESSIONS
THROUGH REAL-TIME
BIDDING DUE IN LARGE
PART TO THE PLATFORM’S
NEARLY UNLIMITED
CUSTOMIZATION OPTIONS
AND THE VALUABLE
DATA INSIGHTS THAT THE
PLATFORM OFFERS
3 Google, “The Arrival of Real-Time Bidding,” July 2011.
4 http://www.economist.com/node/18651104?story_id=18651104