What is RTB: the new technologies of Internet advertising



Recently in Runet appears articles about the technology of the auction in real time – Real-time Bidding (RTB). While this topic is discussed more specialized resources, so I'll be one of the first who will tell about it on Habre. This is an authentic, including technological innovation in the market of Internet advertising, which it's time to introduce her to those who she actually targeted: advertisers buying advertising on the Internet, and sites that earn by selling banner advertising and traffic (Habrahabr.ru for example :).

forecasts, prices for display advertising on the Internet in 2013 will grow by 14 percent, while the average is to rise by 10 percent. Display advertising will overtake and other tools of online advertising – for example, contextual advertising will grow by only 13%. In my opinion, the driver of this growth will be RTB.

What is RTB


In a simplified presentation RTB is a stock exchange where there are three parties: the advertiser who decides how much he is willing to pay for ads to a specific user, platform, which are sold on the basis of an auction in real time and the user — or rather its anonymous data — the right to display advertisements which is the object of bargaining. And trading on this exchange happen in real time: a chain of action preceding the ad to a particular user occurs within fractions of a second while loading the page. During this time, the data on user site on which he went, the information that is known about this site, perhaps additional information from a special data providers — put up for auction and go to an advertiser who chose them for themselves as the most relevant and the best price. The page is loaded and the owner, for example, sees the iPhone is bumpers for him.

Anonymous user data tied to cookies, include a significant number of parameters related to the user (history, socdem, geography, the data provide insights on retargeting). This way the user sees it for maximum targeted advertising.

The line between hype and useful information is very simple: the user differently perceived her as soon as she starts talking about his real needs. For example, we often read in the comments that users love is on Habrahabr. Or at least find it useful and are frequently clicked on it. It is absolutely normal situation for subject resources, the audience which assembled at the friendly interest that are well known to advertisers. And this is a killer feature RTB: participation in this system makes any resource theme.

As a result, this gives an increase in efficiency by orders of magnitude. In traditional media advertising, it is customary to operate with click-through rates (CTR) at the level of a percent. RTB improves click-through rates up to tens of percent, a CTR of 15% and above become a reality.

RTB allows you to meet the advertiser with the customer that he needs. But users can see ads that interest them. The privacy of users remains out of threat, because, in fact, RTB operates a certain virtual profiles based on data about user behavior on the website and available to the "tail" of the data about visits to other resources. To destroy such a profile can be simply cleaned cookies in your browser.

Ecosystem RTB


The most complicated terminology RTB – learn the many combinations of three letters, which constitute the basic concepts in RTB. To describe borrow materials from this article:

Sell-Side Platform (SSP) companies that sell promotional items (advertising equipment) directly sites.
Ad Exchanges and Ad Networks — advertising exchanges/networks that provide connectivity between sites and allow advertisers and selling advertising to thousands of connected sites.
Data Management Platform (DMP or Data Partners) — suppliers of user profiles and management systems these data to increase the precision of targeting.
Trading Desk — centralized platform of purchase of advertising using the RTB ecosystem, allowing to configure the parameters of the redemption of advertising to operate it in automatic mode. The Trading Desk generally is a add-on to the DSP, through which accesses the inventory available in the RTB ecosystem.
DCOP — a dynamic creative optimization platform.
Ad Verification &Brand Protection — post-test advertising and protecting brands from improperly created ads.
Analytics — statistical tools that monitor the behavior of each user on the site.

How it works


First, here was a text adventure out of the 10 items, but then decided to make a picture — I hope so graphically:


the web version of the image: egorcompany.com/pages/rtb

For the implementation of all these operations within a fraction of seconds developed a new type of Protocol Open RTB.

History


As always, all new invented in Google. the technology was based on the development of acquired in 2011 Google the company Admeld. After a year on this model moved more than 78% of sites and 17% of advertisers affiliate network Google Doubleсlick. Google, with its technology, Adsense, Adwords, Analytics, Admeld, Invite Media, Doubleclick, etc. is the largest player in the RTB market. In June 2012, when Facebook launched its own ad exchange, Facebook Exchange (FBX). According to experts, about 15% of purchases of online advertising in the United States are already using RTB.

View advertisers


RTB was a response to the needs of advertisers:

first, the transition from model procurement packages for the purchase of particular shows. If the quality of the traffic falls off or changing its composition — the advertiser will not even notice it, because in any case he buys the shows only interested users. Any “left” traffic never hits him “the load” within the purchased package usually. Almost advertisers to buy its target audience, and no place on the website.

secondly, the system of "second rates", which optimizes the cost of advertising. Trades are conducted in increments of 1 cent and if you specify the cost for the show is at 11 cents, but your competitor is 9, then you win the auction, but your rate is automatically discounted to the lowest more than the competitor — in this case, 10 cents.

Trading Desk


From the point of view of the advertiser, the purchase of advertising in the RTB mode begins with the Trading Desk: as seen in the diagram above, a centralized platform of purchase of advertising.
Advertisers can work through an independent Trading Desk or through specialized agencies — for example, many network agencies have their own Agency Trading Desk, which, unlike the public Trading Desk, "sharpened" under the desired clients of the Agency. This can be compared with the management of contextual advertising — the advertiser can control it independently, but in most cases they prefer the services of specialized agencies.

Independent Trading Desk — this system is available to any advertiser/Agency. The main distinctive feature of the Agency Trading Desk is that such systems are the most flexible and universal, allowing them to use third-party agencies and direct advertisers.

RTB in Russia


Not surprisingly, this technology came from the West is a natural stage in the evolution of more developed and competitive market of Internet advertising. The Russian market, as always, behind half-step, but the gap is a great chance for advertisers, platforms and agencies to stay ahead of competitors by offering a more competitive solution.

DSP

The first Russian DSP: Hubrus and Envelope. Internal DSPS have ad networks Soloway (Internest) and Kavanga. Tinkoff Digital launched RTB platform Data Mind.

Trading desk

The first Russian Auditorius Trading Desk running in a closed beta test. The company says it will specialize in the selling of audiences based on your own DMP.

Trading-Desk RTB-Media uses a proprietary DMP technology and pixel container, which allows you to track the progress of a single campaign in different DSP.

DMP

In the West there are ready segments, such as "audience of office centers", "owners of Apple technology", "the boys are choosing Japanese cars under $20000", etc. — approximately as in the picture above.

Data providers can be platforms and services that have a large amount of traffic and gather information about their audience (gender, age, interests), such as social networks, Internet service providers, mobile network operators, processing systems (Qiwi, Assist, ROBOXchange and others) major thematic sites and other.

Opinion from the point of view sites


It can be useful, for example, Habrahabr (I mean now not community, and the company "Thematic media"). Thanks to the RTB site owners get to sell for every show on the platform with the highest efficiency depending on the visitor and available ads.

On the other hand, for many of the sites important is direct selling – they are profitable and allow you to control exactly who they is.

For example, Yahoo this year has obliged all advertisers buying through its DSP is, to abandon the services of intermediaries and work with it directly; and publishing houses in the United States (Gannett, together with The New York Times Co, Hearst, and Tribune; USA Today, Conde Nast) in creating their closed RTB-stock exchanges, where you sell advertising positions (inventory) of unsold customers directly, allowing to participate in tenders only for selected advertisers. This approach also solves the problem with risk is unacceptable for the site advertising.

Site less, which is about creating their own exchanges out of the question, can filter out company domain in thematic categories or manually moderate the list. Such a solution suggest, in particular, Google and AdFox.

In Russia for SSP sites now have AdFox and Between Digital; Yandex and Google Russia presented a complete set of tools to the auction for sites and advertisers alike. About support RTB technologies said "Runner" and "Video of Interneshnl" starts the closed RTB-stock exchange premium inventory. To launch RTB exchanges are preparing the company AdRiver and Mail.ru running in its ad network retargeting system. Functionality similar to Facebook Exchange, plans to acquire and Vkontakte.

Returning to Habru — as far as I know, TM are time for the type of companies that prefer to keep their finger on the pulse and direct sales — RTB habré can be useful for the sale of the remnants of unused advertising inventory.

What next?


Further development of RTB will be determined by the following factors:

the
    the
  • growth opportunities of the mobile advertising market;
  • the
  • increase the number of premium ad formats;
  • the
  • the demand for increasing transparency of media advertising.

however the tendency to transition with the classic purchases in real time are already obvious. Hope this helped to understand the essence of this phenomenon (:
Sources:

the
Article based on information from habrahabr.ru

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