Programmatic trading has existed since the beginning of the XXI century, since the first advertising exchanges appeared. Initially, the development of advertising exchanges was difficult and expensive, but their appearance on the world market marked the arrival of a new era, similar to the era of stock exchanges, but for operations in the marketing and advertising industries.
RTB (real-time trading) as a form of program advertising is a fairly new technology that has emerged as a result of decades of active work by companies such as X + 1 and Lucid Media. Today they form the so-called LUMAscape - a community of companies operating on Ad Exchange trading platforms and included in the list by investment banking firm LUMA Partners. LUMA Partners work at the junction of media and high technology. RTB itself has become an indispensable product that allows you to participate in online valuation and bidding for real-time advertising. It also allows you to link to various online publishers who sell ad inventory. ')
Simply put, advertising inventory is a certain part of a web page that can be purchased for displaying its advertisements. Inventory publishers and sellers are often combined into common SSP (Sell-Side Platforms) networks.
RTB technology offers buyers and simple users to use the services of SSP through intermediaries DSP (Demand-Side Platforms) and buy advertisements at a price that suits them. DSPs play a critical role in the existing ecosystem, providing marketers with broad access to advertising inventory, vertical and lateral targeting with the ability to deliver ads, trade in real time, track ads, and streamline the process using one convenient interface. Immediately after installation, the entire auction process is shown on the user's screen, which takes place in a fraction of a second during page loading. There is a reason why PPC (Pay per click, pay per click) and CPC (Cost per click, cost per click) advertising models disappear from advertising space. Publishers cannot make an acceptable profit from the sale of their inventory, and most of their ad impressions are not sold. Software RTBs not only solve this problem, but also allow ad buyers to target it to a specific audience based on information about the billions of daily Internet users. Although RTB began to develop only in the second half of 2009, it now accounts for more than 40% of all online advertising in the United States, and the annual increase is 42%.
The DataArt development team, as software vendors for a number of thriving US media companies, is not far behind the trend. Over the past few years, we have successfully launched several projects on programmatic trading and RTB. In order to present all the advantages of implementing these complex solutions for your business, we have developed a visual prototype of a working application based on the open source RTB kit platform and its integration with one of the leading digital exchanges.
To show the mechanics of our RTB demonstration kit, we decided to deploy the “buy-side” functionality as an example. In short, our prototype allows the user to create his banner and see it while browsing the web pages integrated with our advertising exchange. Alternatively, the application can be modified to target specific groups of people, and it allows you to view statistics on how users navigate to the page after launching a banner campaign.
And now let's take a closer look at the mechanics of this system. Now the RTB installer comes as a separate application hosted on Amazon S3, and allows the user to go to the toolbar, create their own banner based on existing templates of standard sizes, and determine the CPM budget that suits them. As soon as the banner is ready, it automatically assigns a tracker, a small pixel with a personal code, which is determined by our partners' advertising exchange system and allows the RTB Kit to participate in the available auctions on thousands of websites integrated with the advertising exchange.
With the start of the campaign, real-time statistical data is available, displayed in the application panel, showing the budget, the amount of money spent, the conversion rate of users in the form of graphs.
Another important feature of our RTB Demo Kit is that it allows the campaign owner to choose the target audience, and thus participate in the most profitable auction. In this case, information about users visiting the pages of publishers is collected and processed by our partners' advertising exchange.
In general, and in general, our RTB Demo Kit showed very good results. We had the opportunity to involve colleagues in the testing process, which gave us the opportunity to get the most objective assessment of the product. Our Demo Kit can be easily changed to integrate with other DSPs and advertising exchanges, which we have demonstrated in similar projects for clients.
The demo itself is not yet available to the general public.
By Gregory Gore, Senior Vice President, Media and Entertainment