Those days when marketers would buy big blocks of untargeted mobile advertising with little concept about where or when the ads run are numbered, or so we’re told. Today advertising technology is so efficient and quick that in the time it takes someone to open a mobile page on a website or app, advertisers can identify the chance, based upon visitor/publisher profiling, bid for and buy the advertisement area, and serve the ad. This all occurs immediately in real time. Welcome to the brave new world of the demand-side platform (DSP) and real-time bidding (RTB) exchange.
What is a mobile demand-side platform (DSP)?
A DSP enables marketers to buy advertising inventory (i.e. where their ads are shown) across a large range of publishers through online exchanges, providing access to big numbers of impressions globally through a single buying point.
A mobile DSP, such as Byyd’s Madison, performs this service in the mobile world. It automates the procedure of match-making mobile ads with the most suitable mobile sites and apps, both dealing with the unique difficulties and maximizing the chances paid for by mobile. A mobile DSP brings together data from advertisers, publishers, advertisement tech business and 3rd parties, to provide mobile ad purchasers the best possible chance of purchasing the best inventory for their customers.
Rather than buying blocks of inventory, the DSP evaluates each impression, as the mobile user opens a page on a mobile site or app, and, if the slot is appropriate for a customer’s campaign, it is purchased, so the advertisement is revealed as the page displays on the mobile device. This all takes place within a split second.
How to pick a DSP?
Integration: the best mobile DSPs will be incorporated with the greatest number of mobile ad exchanges to use the largest and inmost access to inventory, which can go to billions of impressions daily. They will also easily incorporate different mobile advertisement formats, especially rich media.
Data: the efficient running of the DSP/RTB environment is dependent on data, so the more first-party information it can access from the marketer, integrated with third-party data purchased in to complement this, the much better.
Algorithms: this is the main point of distinction for many mobile DSPs. The algorithms that a mobile DSP uses to integrate all the information, examine each impression, decide whether to bid for that impression and after that decide just how much to bid, lie at the heart of the mobile DSP’s efficiency. Algorithms are the ‘brains’ of the operation, and are vital to identifying value. The mobile DSPs with the most advanced algorithms, will win the most bids at the most competitive prices, and will hand down greater click-through and conversion rates, and effectively, savings.
How much does it cost? Does it make it more affordable?
The expense of mobile DSP services varies between suppliers and license contracts. They are typically charged on a cost-plus design, so the marketer pays a particular cost per thousand impressions (CPM) for advertisement area and the DSP’s cost is a portion of that CPM.
Regarding whether it is ‘less expensive’, research studies by Nexage and Rubicon all recommend that the RTB model, through which a DSP allows a marketer to bid, can improve click-through rates and win rates, and decrease expenses for advertisers, while also increasing reliable revenues per thousand for publishers.
However, this is all part of the bigger design around what an advertiser considers ‘value’. If, through RTB, an advertiser purchases more of the ideal audience and less of the incorrect audience then the media buying is more efficient and therefore much higher value. It’s the opposite of ‘spray and pray’, where ad networks buy a great deal of inventory at low rates with the hope that some ads will attract clicks.
The mobile DSP offers overall openness for the advertisers. They can see exactly where their ads are appearing, and how much they paid for them. This gives them the ability to adapt throughout the lifetime of a campaign and zero in on what is working well for them to make the most of value, rather than advertising blind or semi-blind on an ad network.