rtb technology. RTB advertising is an innovative way to increase customers

Good afternoon, dear readers, today we continue with you to figure out how to monetize your site without harming it, and thereby increase your family budget. Earlier, I already told you about making money on google adsense, when the great and terrible Google broadcast contextual advertising from its networks on your resource, as well as about making money on youtube videos, where the same Google showed ads in videos and thereby gave you the opportunity to joke . All this is good, but there people are paid for clicks, and there is another type of advertising where they give money for views and it is called rtb platform.

RTB ad networks

In this note, I will share with you my real numbers that I managed to raise on RTB advertising, there will not be any water, which is already so much on the Internet.

RTB (Real Time Bidding) advertising is a kind of technology for buying advertising space through an auction. All the difference from contextual advertising is that the webmaster is paid for ad views, not for clicks. The auction is a game of advertisers for renting an advertising space, who gave the most and in kings, all this happens in a split second. The webmaster eventually gets the most favorable price from all offers. I will not load you with all sorts of terms, how this whole process is organized, this is not necessary, it is enough for you that as many people as possible see your RTB banner, the payout amount depends on it.

Examples of rtb ads

Let me show you how ads look like on rtb ads so that you understand. what from contextual banners google ads little difference. As you can see, everything is decent, I often have ads from the Savings Bank or the GAZ automobile plant on my sites.

The main participants of such an online exchange are:

• advertisers
• platforms - those resources where the user will see ads
• users - site visitors who are directly affected by RTB advertising

First, let's define the rest of the participants in RTB.

SSP (Sell Side Platforms)- These are Internet advertising systems that are engaged in the auction purchase of advertising in various networks (for example, Yandex, Google, Begun).

DSP (Demand Side Platform)- these are brokers, i.e. intermediaries that act in the interests of the advertiser interact with SSP-systems and data providers, determining the optimal advertising rate.

Data providers (DMP, Data Management Platform)- organizations and systems that collect and sell anonymous information about Internet users, their interests, consumer experience and demand.

The user loads a web page, and at this time, in a matter of seconds, the RTB system manages to conduct an auction and determine the winner with the highest bid, whose ad will be shown to this user.

Trading takes place as follows:

RTB sites send a request to DSP systems, which decide how attractive this request is for their advertisers (i.e. whether this user fits the target audience of the ad) and send their bid to the RTB system. DSP systems can buy Additional information about users at data providers.

• RTB platforms allow you to optimize advertising costs, as rates change in increments of 1 cent, even if the difference between the closest competitors is 5-10 cents
• RTB systems allow you to increase CTR up to 10% or more, in comparison with traditional media advertising - 0.1–2%
• RTB advertising brings the most targeted potential customers

• get the most targeted customer, not just advertising space
• optimize the cost of advertising, which is determined on a competitive basis and changes in increments of 1 cent. Even if the winner's bid is 5-10 cents higher than the nearest competitor, the final ad impression bid will be the closest competitor's bid + 1 step
• multiply the number of customers, the amount of advertising that rotates on RTB sites and reaches colossal proportions
• gain control over advertising campaigns
• get impressions of the most interesting ads for site visitors, which allows you to target not only contextual, but also media advertising.

But you need to remember that launching a campaign on RTB platforms, like playing on any exchange, is associated with great risks. The greater the desired profit, the more pitfalls. Not everyone wins on online exchanges - do not take risks in vain, contact the professionals!

They are certified specialists of SSP-systems.

• Personal managerYour project will be supervised by a personal account manager. He controls the actions of employees and is always ready to answer questions, advise on the development strategy of the web resource.
• media planner Compiles a list of keywords for an advertising campaign using special software developments and own experience. No streaming solutions: you get a personal strategy to achieve the goals for your advertising campaign.
• RTB advertising specialistLaunches an advertising campaign, evaluates the effectiveness media advertising and attract customers through impressions to target users on online auctions (RTB) and mobile networks.
• copywriter Writes texts for your advertising campaign that help increase sales. He understands more than 100 topics and masterfully plays with words.
• Designer Responsible for the implementation of creative ideas and the creation of graphic content. Knows how your ads should look in order to attract as much attention as possible from loyal users.
• Targetologist Participates in the targeted adjustment of ads to the target audience, and also connects in the case of complex solutions, when contextual advertising and SMM interact.
• Project ManagerControls the work of all specialists to get the most out of the advertising campaign. He has a unique ability to see the whole picture of the project in as much detail as possible.
• Quality Control SpecialistAssesses risks and constantly monitors compliance with the requirements for the quality of work performed.

With the help of the RTB system, advertisers can buy not specific places on sites for advertisements, but the audience that will see these ads. The platform learns from the behavior of the user on the Internet his age, place of residence and interests. Every time this user opens the site, an auction takes place: for the fraction of a second that the page loads, advertisers bid for the owner of the computer (for example, a 20-year-old sports student from Moscow) to see their ad.

Participating in the auction are: the site - the seller of the advertising space and the DSP-system - buyers representing the interests of advertisers. The RTB platform organizes the auction, accepts bids and determines the winner. In a fraction of a second, DSP systems evaluate how valuable an ad impression is to a given user, and then bid in the form of a cost per impression. The winner, that is, the DSP system that gave the best price, gets the right to show its advertisement.

Popularity of technology

2014

According to ADFOX forecasts (March 2014), the share of RTB in 2014 may reach 10% of common market media advertising. The growth driver may be the agreement between Yandex and Google, the entry of Western players into the Russian market, as well as the development of the programmatic direct concept.

2013: 1.2 billion rubles (6% of the media advertising market)

By 2015, advertising sales through RTB systems will occupy at least 15% of the Runet banner advertising market, although as of May 2013 their share is only 1-2%, Andrey Chernyshov, director of digital communications at the Russian representative office of Aegis Media, said.

In March 2014, ADFOX Company presented the next "RTB Market Review in Russia", which summed up the results of the development of the programmatic advertising purchase segment in Russia in 2013. In the first half of 2013, the volume of the Russian RTB market (real-time trading) amounted to 0.4 billion rubles, and in the second half of the year this figure doubled that of the first half of the year. Today, the average weighted estimate of the RTB market in Russia in 2013 is 1.2 billion rubles, which is 6% of the total media advertising market, which, according to the Association of Communication Agencies of Russia (ACAR), in 2013 amounted to 20.1 billion rubles.

RTB is perceived by experts as the main driver for the development of the digital advertising market. According to IDC, the amount of revenue generated by RTB will increase annually by 51% and by 2017 will amount to $20.8 billion, while in 2013 alone it grew by 60% compared to 2012. The United States occupies a large share in the global RTB market, but, according to experts, the US share in the RTB market will decrease from 74% to 69% by 2017.

Several major events related to the RTB market are proof that RTB will become the driver of the online advertising market. In March 2013, Facebook included the display of advertisements in news feed network users. The test period lasted several months, and major market players such as AdRoll, AppNexus, Brandscreen and others took part in it. All companies participating in the testing stated that the effectiveness of Facebook Exchange significantly exceeds the effectiveness of traditional advertising campaigns, including targeted campaigns through Google Exchange.

Also in April 2013, social networking site Foursquare partnered with Turn to provide Foursquare with location data for targeting on other sites. This mobile data is the most accurate for ad targeting. The effectiveness of this approach is evidenced by the fact that with an average cost per thousand impressions of $1, the cost using Foursquare reaches $1.5.

In 2013 appeared new trend RTB market - mobile advertising in videos. According to the IAB report, about 7% of all advertising budgets on the Internet are spent on online video advertising, and this segment of the advertising market adds 20% per year: in 2013, $3.6 billion was spent on online video advertising, and in 2014 this figure will rise to $4.6 billion a year. This is due to the explosive increase in Internet video consumption, which is growing at 24% per year.

As for the Russian market, although it is not the world leader in terms of indicators, it shows steady growth rates. According to ACAR, the total volume of the online advertising market last year amounted to 71.7 billion rubles, which is 27% more than in 2012. The segment of media advertising grew by 12%, amounting to 20.1 billion rubles, while contextual advertising added 34%, which money equivalent is 51.6 billion rubles.

Despite the fact that the RTB market in Russia did not start in 2012 as successfully as experts and market players expected, interest in this segment did not subside and by the end of 2013 the market volume grew to 1.2 billion rubles, which amounted to 6% of the media advertising market. Last year there was one very important change in the RTB market: players switched from words to action, so some of the players whose expectations were not met left the market, but more large companies with already developed action plans, as well as Western players. Thus, back in 2012, the Yandex company announced the creation of its own RTB system, and in 2013, the company's partner sites began to gradually connect to trading. At the beginning of 2014, Yandex made important step to develop the RTB market by starting cooperation with Google in the field of advertising. Yandex's media advertising service, AWAPS, will be connected to Google's RTB system, and Google's Double Click Bid Manager service will be connected to Yandex's RTB system. On the this moment other major Russian companies do not plan to enter the programmatic buying market, however, experts are sure that Russian social media will adopt the experience of Facebook and take part in the development of the market.

Analysts note that large Russian Internet projects have begun to enter the RTB market more often and more willingly, offering their inventory (advertising positions) through advertising exchanges or creating own technologies. In 2013, Wamba, an online dating service, RBC holding, and Avito, the largest advertising portal in Russia, began putting traffic up for auction. The latter, for example, offers advertisers to purchase ad impressions using Google DoubleClick AdExchange and Yandex RTB. Advertisers can participate in an open auction, or enter into a direct contract for the purchase of a certain amount of traffic using data through programmatic direct. Avito's major clients are BMW Group, Svyaznoy, P&G.

Experts believe that in the near future, the RTB traffic of the sites will be concentrated in the hands of large SSPs (technology companies that trade advertising positions). Website owners, after evaluating the capabilities of each of them, will choose the one that brings the maximum income from the implementation of residual traffic. On the Russian market SSP services are currently represented by companies such as ADFOX, AdRiver, Begun, OpenX and others.

During 2013, the volume of RTB traffic redeemed through the DSP auction grew evenly, and the dynamics consisted not only of an increase in the amount of inventory, but also of an increase in the percentage of redemption. The most demanded format was 240x400, its share in the total buyout amounted to 80%, followed by the 728x90 format. The rest of the formats have been practically superseded by the two leaders and account for less than 5% of the total volume.

In Russia, personal data, as in the rest of the world, is owned only by large Internet services and social networks. Access to this data for other market players is extremely limited. Also, large online stores have their database, on the basis of which they can segment the audience and conduct targeting. Other players use the services of providers to obtain this data, which are conventionally divided into two groups. The first category includes companies that have data and provide it for targeted advertising, and companies that aggregate supplier data to form aggregated profiles based on various sources.

In 2014, the development of the RTB market is predicted in several directions. The programmatic direct concept will be implemented to implement premium inventory sales through the programmatic infrastructure. Brand safety technologies will continue to develop, which will help protect advertisers from the appearance of their banners on unwanted sites. In addition, the number of large sites that will begin to auction their advertising inventory will increase, the data market will develop and new suppliers will appear.

It is also expected that there will be an integration of Russian traffic into Western DSPs (advertising systems that represent the interests of advertisers), and new competent specialists will appear on the market to work with data and technologies. According to preliminary forecasts, in 2014 the share of RTB in the total media advertising market will reach 10%.

Market Complexities

For effective work RTB key issue is to create an adequate knowledge base about users so that ads are shown exactly target audience, He speaks Commercial Director Mail.ru Group Alexey Katkov. In May 2013, Katkov criticized the Data Mining RTB platform from Tinkoff Digital, which used user data from the social network without permission "

• Dynamic creative. Advertising materials can literally be changed on the fly so that they best suit the wishes and needs of the client at the moment: choose the appropriate color scheme, taking into account the gender of the user, offer more favorable conditions for regular customers of the company / brand. As practice shows, there are a lot of opportunities. And in your advertising campaign too!
• Retargeting- an advertising mechanism that allows you to show ads to users who have visited the advertiser's website.
• Unique targeting accuracy. Advertising campaign targeted many times more accurately than traditional technology. We use our own targeting, and not just those offered by the advertising platform, which means we have maximum user data. We don't buy hundreds of impressions, but select only really valuable users. Thus, RTB traffic is the most targeted users.
• Customer care. Yes it is! The ads that users see correspond to their interests, they are not annoying and bring real benefits.
• The main difference between RTB and media and contextual advertising: what is sold is not a certain number of ad impressions on a specific site/resource, but the display of a specific message to a specific user.