Regarding my previous post about Oreo’s Real Time Advertising, here’s interesting debate among industry experts on the topic. Gathered at the Internet Advertising Bureau’s (IAB) to enforce a few home truths about the real-time bidding market. The Drum’s has rounded up some of the key themes and main points from the event. Check it out and read my insights below.
Is Real Time Advertising really the future of advertising? The phenomena is described as follow on Wikipedia:
A user visits a website with a display advertising, a call is made by the exchange server (database web server) supporting Real Time Bidding (RTB) to the Demand Side Platforms (DSP) or Ad Networks (Ad Exchange) to determine which advertiser gets to serve the ad. Each user has an associated set of attributes, which is transferred from exchange server to the DSP and determines whether the user has the desired attributes (cookies) that the advertiser wants to target. Based on the perceived value of this user, a bid is placed on this ad impression by relevant advertisers and the highest bidding advertiser gets the placement.
A simple real time example: A user heads to a page on a publisher’s website, causing it to start loading. In the same instant the publisher sends out a “bid request” to thousands of potential advertisers saying, “We’ve got this user who is 30, Indian, male and based in New Jersey, US, and recently searched for return air tickets to Delhi, opening a page on our site. How much are you willing to bid for being the only ad on this page?” Within about 100 milliseconds the publisher gets bids from different advertisers, which then analyses to figure out the highest bidder and the brands being advertised. The winner is alerted by the publisher and allowed to place its ad on the page. The remarkable thing about this entire process is how fast and how often it takes place. The entire series of to-and-from communication between publisher and advertisers takes place in 300-500 milliseconds, causing no visible delay to the user. This process is repeated for every ad slot on a page.
The biggest question still remains though: Is this really what the users are asking for? Not the advertisers, but the users?
Check out the video about Real Time Advertising and bidding: