Marketing Mag: The future of online advertising – Part 4

Posted by IAB Australia On December 12, 2012 Research & Resources

As automated trading through real-time bidding technologies emerges as an efficient method of buying online advertising space for marketers and media agencies the world over, on the other side of the equation sits another party for which this growing trend will have significant implications: publishers. One of the apparent contradictions of real-time bidding is that as advertisers sit on one side of the equation employing algorithms in order to increase buying efficiency, on the other side sit publishers, who (obviously) want to maximise the value of their inventory.

But this contradiction doesn’t take into account factors such as campaign performance and wastage. Depending on the targeting, response rates and conversions, when marketers do this well, large improvements in campaign performance can be achieved. A smaller buy can achieve the same result as one five times its size, says Stuart Spiteri, chief operating officer of News Digital Media.

“This is where publishers start to get a little cautious,” he says, “because there is a decline in the volume that may be purchased, but there should be an increase in yield, if it’s done properly.”

Part of doing it properly means using data. Instead of selling an audience on its size and generalised profile, yield can be maintained and increased in an automated environment by wrapping each impression in information, such as intent to purchase (a car, a skirt or a home loan).

IAB Australia

IAB Australia is the peak trade association for online advertising in Australia. As one of over 43 IAB offices globally and with a rapidly growing membership, the role of the IAB is to support sustainable and diverse investment in digital advertising across all platforms in Australia.