If you are someone who is up to date on the online marketing and advertising world, then you most likely have heard of real time bidding (or RTB for short). RTB is revolutionizing the way display ads are delivered online by changing how advertisers are connecting with consumers. The major change is that advertisers now bid on each individual impression instead of buying them in bulk – but that’s just the start of how RTB is changing how marketers sell you.
Superior Targeting Capabilities
One of the primary benefits of real time bidding technology is that it allows the advertiser to look at individual impressions and offer a bid based on how attractive each impression is. Attractiveness is subjective to each advertiser, however if a real time bidding platform offers machine learning technology, then the advertiser has a much deeper picture of how attractive you are to them.
Using machine learning technology in real time bidding allows the advertiser to determine your demographics, likes and dislikes, as well as buying patterns in fractions of a second. Each of these variables will impact the ads you see, as smart advertisers will make sure they are showing you ads that appeal to your preferences.
Superior Re-targeting Capabilities
Similar to what was discussed above, being able to pay more for your impression if you have previously viewed an advertisers ad or visited their website, allows marketers to more aggressively pursue you. It is their belief (and statistics do support this), that these impressions are more likely to convert, so they are willing to pay more for these.
Let’s pretend you decided to click on an ad you found appealing and was brought to a landing page which presented an offer to you. You are much more likely to click through on a landing page that is tailored to your interests than on one which is generic and mass appealing. Real time bidding coupled with machine learning technology allows advertisers to do this, meaning better offers for you and better results for them. What it boils down to is that with RTB, advertisers have greater control over which impressions they buy, where their ads are seen and how they offer their deals to you. The overall effect is that you are exposed to more tailored online advertising, while the advertiser connects with the right consumers more efficiently.
Next time you are on your favourite website, take a look at the ads – if they are super targeted, you could be the beneficiary of real time bidding! Happy surfing!