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The online display advertising space can be very complicated. This presentation breaks down the industry and how real-time bidding works. Take a look for an introductory crash course on RTB and online display.
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Display Advertising for Beginners
• Banner Ads• Video Ads• Even Text Ads!
What is Display Advertising?
Websites have ad space, or inventory, that needs to be filled:
• Sales teams sell ad inventory directly to relevant companies
OR
• Websites would give inventory access to ad networks that would handle the selling
[Back in the Day] How Display Inventory Was Sold
Companies with an online advertising budget become “advertisers”:
• Advertisers reach out directly to relevant websites to buy their ad space
OR
• Advertisers buy relevant ad space from the ad networks
[BITD] How Display Inventory Was Bought
• Manual buying and selling was inefficient
• The process was very long and very expensive
• Websites were unable to sell all of their inventory
• Advertisers had limited visibility into available ad inventory
[BITD] Problems With Back in the Day
• Advertisers can now evaluate and bid for single impressions at scale (automated supply chain)
• RTB makes it easier for websites to sell their remnant inventory
• Advertisers have more visibility into available ad inventory
[RTB] Enter Real-Time Bidding
Audiences
Advertiser goals are shifting: Instead of targeting a website, now buying impressions that target specific “users” across many websites
Bidding Strategies
Buyers can introduce new bidding strategies to hit the right goals within their budgets
Creatives
Advertisers can quickly test and iterate their creatives without stopping their campaign
[RTB] Building on RTB
• It can be very complicated and technical
• With so many options, optimization is difficult
• Lack of focus and strategy when approaching RTB
• Lack of customer service with automation
[RTB] Problems With RTB
• Audience (BlueKai, Exelate, Chango)
• Creatives (AdExtent, Flite, Canned Banners)
• Inventory (AppNexus, BuySellAds, FBX)
• Service (Theorem, OAO)
The Industry today
• Audience: Social audiences, look-a-like audiences, psychographic targeting
• Creatives: Dynamic creatives
• Inventory: Increase the amount of available inventory
• Service: Build better tools to help internal teams service customers
How the Industry Can Improve