2015年5月2日星期六

What are the advantages of RTB advertising and its challenges in the age of mobile?

    
    RTB (Real Time Bidding) is a kind of bidding technology based on the third-party technologies and the evaluation of each user’s behavior on millions of websites. The digital age is an age of fragmented information for the marketers, for that the sellers control countless terminals, and the consuming time is also split up by uncountable websites and media. The goal of RTB, which owns countless media resources and billion traffic everyday, is to help the advertisers to target accurately at their consumers in the ocean of fragmented information.

    Talking of RTB advertising, there are several concepts that cannot be ignored. The first one needs to be explained is DSP, which is called Demand side platform. It is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Demand site platform is like the central hub of RTB advertising, connecting the sell side platform, Ad Exchange and the data management platform. DMP is the second is the core part of demand site platform, which is responsible of storing and managing all the user’s data, as well as providing statistical supports when DSP makes decisions.

    As a mode that is completely based on the users, how is the process of RTB advertising realized? For exampleif a user loves cars and always check information about cars on the internet, all his data and using habbits would be kept. Once he enters the address and wants to log in a website, the publishers ask its ad server and then the Ad Exchange whether there are ads to be served or not. Later on, the Ad Exchange sends the users’ information to several DSP, which would apply for their-party data, evaluate and compute optimal bid for the advertisers. After Ad Exchange selecting the winning bid from DSPs and sending its advertisement as well as price to the publisher’s ad server, the server would send the ad to the browser for displaying and notify the DSP that the ad has been viewed. What is unbelievable is that all of these actually happen in several seconds, when the browser is loading web page for the user.
    Compared to the traditional digital advertising mode, DSP has presented obvious advantages. The first one is that it significantly improves the accuracy of marketing, for that people who see the ads are actually those who are likely to be interested. Moreover, while in the past, the marketers would use several weeks to launch an advertising plan, the DSP mode has reduced the complicated process and realized the instant ad launching.

    Looking at the report about digital advertising in China, it can be clearly seen that mobile Internet advertising has taken and would take increasing market share. Howeverthe mode of DMP is also facing lots of problems if it hopes to develop on mobile platforms. Above all, DMP needs to integrate the data through the unique ID, which is attributed to each user, so that the users’ data and characters can be collected and they can also be defined by the tags. While these could be done by the cookies on PC platforms, cookies would be useless in the APPs on mobile phones. Meanwhile, although there are indeed other ways such as IMEI, Android ID, and Apple’s IDFA, the data collection would be limited by the App’s limits of authority and the users’ privacy settings.
    Moreover, most Ad Exchange platforms have encrypted the users’ information that they send to the DSP, making if pretty challenging for the DMP to accumulate the information and combine the users’ behavior features through bidding. Therefore, facing all these challenges, only the companies who have the ability to collect as well as analyze a large amount of data have the advantages in mobile DMP. These include the mobile device manufacturers, the large-scale IT companies such as BAT, the telecom operators and the App companies that cover broad markets. They may cooperate to overcome the challenges for that mobile RTB would undoubtedly be the future of digital advertising.


References:
1.     199IT.com2014RTB 是数据和营销的完美结合. Retrieved at April, 30th, 2015 from: http://www.199it.com/archives/227914.html
2.     Sohu 2014)移动互联网广告市场,哪些公司在抢食. Retrieved at April, 30th, 2015 from: http://mt.sohu.com/20150311/n409656672.shtml
3.     PWC 2014Mobile advertising in China. Retrieved at April,30th, 2015 from: http://www.pwccn.com/webmedia/doc/635358539404587393_mobile_ad_china_cut_may2014.pdf
4.     RTB China 2015)移动DMP 盛名之下其实知易行难. Retrieved at April.30th, 2015 from: http://www.rtbchina.com/mobile-dml-is-not-an-easy-piece-at-all.html


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