What is RTB: new technologies of online advertising
Recently, articles about auction technology in real time - Real-time Bidding (RTB) appear in RuNet. While this topic is more discussed on specialized resources, so I will be one of the first to tell about it on Habré. This is genuine, including technological innovation in the online advertising market, which is the time to acquaint it with those to whom it actually targets: advertisers who buy advertising on the Internet, and sites that make money by selling display advertising and traffic (Habrahabr.ru , eg :).
According to forecasts , the rates for display advertising on the Internet in 2013 will increase by 14 percent, while on average advertising will rise in price by 10 percent. Display advertising will overtake other online advertising tools - for example, contextual advertising will grow by only 13%. In my opinion, RTB will be the driver of this growth.
What is RTB
In a simplified presentation, RTB is a stock exchange on which there are three parties: an advertiser who decides how much he is willing to pay for displaying advertisements to a specific user, sites that are sold through a real-time auction, and the user — or rather, his impersonal data — is show advertising which is the subject of bargaining. And trading on this exchange takes place in real time: a chain of actions that precede the display of advertising to a specific user occurs within fractions of seconds while the site page loads. During this time, data about the user - the site on which he visited, the information that is known about his site, perhaps - additional information from special data providers - put up for auction, and go to the advertiser who chose them for himself as the most relevant and suggested best price. The page is loaded - and the owner, say, the iPhone sees bumper ads for it.
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Anonymous user data associated with a cookie includes a significant number of user-related parameters (query history, social data, geography, retargeting data). Due to this, the user sees the most targeted advertising for him.
The line between annoying ads and useful information is very simple: the user perceives it differently as soon as she starts talking about his real needs. Say, you often have to read in the comments that users love ads on Habrahabr. Well, or at least find it useful and often click on it. This is an absolutely normal situation for thematic resources, whose audience is gathered for understandable interest, which is well known to advertisers. And this is a killer feature of RTB: participation in this system makes any resource thematic.
As a result, this gives an increase in efficiency by orders of magnitude. In traditional display advertising, it is customary to operate with CTR (clickability) indicators at the level of fractions of a percent. RTB increases clickthrough rate to tens of percent, CTR 15% and higher become a reality.
RTB allows the advertiser to meet precisely with the client that he needs. And users see ads that they are interested in. At the same time, user privacy remains out of danger, since, in fact, RTB operates with certain virtual profiles based on data about the user's behavior on the site and the “tail” available to it from data on visits to other resources. To destroy such a profile, you can simply clean the cookies in your browser.
RTB Ecosystem
The most difficult thing in RTB terminology is to learn the many combinations of three letters that make up the basic concepts in RTB. For the description we will borrow materials from this article :
Demand Side Platfrom (DSP) is an auction for advertisers, a technology company that trades with SSP / Ad Exchange, etc. The DSP itself, as a rule, does not have an interface for buying and managing advertising. There are such interfaces on products that are add-ons over DSPs, for example, retargeting systems, Trading Desk, and others.
Sell-Side Platform (SSP) - technology companies that sell advertising positions ( advertising equipment ) directly platforms.
Ad Exchanges and Ad Networks are ad exchanges / networks that link sites and advertisers and allow ads to be sold to thousands of connected sites.
Data Management Platform (DMP or Data Partners) - providers of user profiles and data management systems to increase targeting accuracy.
Trading Desk is a centralized platform for the purchase of advertising using the RTB ecosystem, which allows you to customize the options for buying out advertising to manage it automatically. Trading Desk, as a rule, is a superstructure over the DSP, through which it gains access to the inventory available in the RTB ecosystem.
DCOP is a dynamic platform for creative optimization.
Ad Verification & Brand Protection - post-verification of advertising and brand protection from incorrectly created advertisements.
Analytics - statistics tools that track the behavior of each user on the site.
How it works
First there was a text quest of 10 points, but then I decided to make a picture - I hope, it’s more obvious:
Web version of the image: egorcompany.com/pages/rtb
To implement all these operations within fractions of seconds, a new type of Open RTB protocol was developed.
The history of development
Advertiser view
RTB was the answer to the needs of advertisers:
First, the transition from purchasing packages to purchasing specific impressions. If the quality of traffic on the site falls or its composition changes, the advertiser will not even notice this, since in any case he buys impressions only for users interested in him. Any “left” traffic no longer falls into its “load” as part of a paid package, as is usually the case. Practically, advertisers buy their target audience, not a place on the site.
secondly, the “second price” system, which optimizes advertising expenses. Bidding is conducted in 1-cent increments, and if you specify a cost per impression of 11 cents, and your competitor is at 9, then you win the auction, but your bid is automatically discounted to a minimum higher than that of a competitor - in this case, 10 cents.
Trading desk
From the point of view of the advertiser, the purchase of advertising in RTB mode begins at the Trading Desk: as seen in the diagram above, this is a centralized platform for the purchase of advertising.
Advertisers can work through independent Trading Desk or through specialized agencies - for example, many network agencies have their own Agency Trading Desk, which, unlike public Trading Desk, is “honed” by the agency’s clients. This can be compared with the management of contextual advertising - the advertiser can manage it independently, but in most cases they prefer the services of specialized agencies.
Independent Trading Desk are systems available to any advertiser / agency. The main distinguishing feature of the Agency Trading Desk is that such systems are as flexible and versatile as possible, which allows them to be used by third-party agencies and direct advertisers.
RTB in Russia
It is not surprising that this technology came from the west - this is a natural stage in the evolution of a more developed and competitive online advertising market. The Russian market, as always, is half a step behind, but this lag is a great chance for advertisers, sites and agencies to outrun competitors by offering a more competitive solution.
DSP
The first Russian DSP: Hubrus and Envelope . Soloway (Internest) and Kavanga ad networks have internal DSPs. Tinkoff Digital launched Data Mind RTB platform .
Trading desk
The first Russian Trading Desk Auditorius is launched in closed beta test mode . The company says it will specialize in selling audiences based on its own DMP.
Trading Desk RTB-Media uses its own DMP and pixel container technology, which allows you to track the progress of a single campaign in different DSPs.
DMP
In the West, there are ready-made segments, for example, such as "audience of office centers", "owners of Apple equipment", "boys choosing a Japanese car up to $ 20,000", etc. - approximately as in the picture above.
Data providers can be sites and services that have a large amount of traffic and collect information about their audience (gender, age, interests), such as social networks, Internet service providers, mobile operators, processing systems (Qiwi, Assist, ROBOXchange and others). a) large thematic sites and others.
View from the point of view of the sites
How can this be useful, for example, Habrahabru (I mean now not the community, but the Thematic Media company). Thanks to RTB, site owners are able to sell each impression on their site with the greatest efficiency, depending on the visitor and the available advertisements.
On the other hand, direct sales are important for many sites - they are more profitable and allow you to control exactly who is located at them.
For example, Yahoo this year has obliged all advertisers buying through its DSP advertising to refuse the services of intermediaries and work with it directly; and publishing houses in the United States (Gannett with The New York Times Co, Hearst and Tribune; USA Today, Conde Nast) set up their closed RTB exchanges where they sell advertising items (inventory) that are not sold directly to customers, allowing only select advertisers. Such an approach also solves the problem with the risk of the appearance of an unacceptable advertising space.
Smaller sites that are not about creating your own stock exchanges can filter companies by domain, by subject heading, or manually moderate the list. Such a solution is offered, in particular, by Google and AdFox.
In Russia, AdFox and Between Digital now have their own SSP for sites; Yandex and Google Russia presented a complete set of tools for auction bidding for both sites and advertisers. Support for the RTB-technology is announced by Runner, and Video International launches a closed RTB-stock exchange of premium inventory. The company AdRiver and Mail.ru are preparing to launch RTB-exchanges, which has launched the retargeting system in its advertising network. Functional, similar to Facebook Exchange, plans to acquire and VKontakte.
Returning to Habr - as far as I know, TM belong just to that type of company that prefers to keep abreast of and direct sales - RTB on Habré can be useful for selling the remnants of unused advertising inventory.
What's next?
Further prospects for the development of RTB will be determined by the following factors:
- the growth of mobile advertising market opportunities;
- an increase in the number of premium advertising formats;
- demand for increased transparency of display advertising.
- however, the tendency to transition from the classical procurement model to real time is already obvious. I hope this material helped to understand the essence of this phenomenon (:
Sources:
Source: https://habr.com/ru/post/169267/
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