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Turn ignites RTB on two inventory platforms

Written on: Oct 29, 2009
Author: Gavin Dunaway |
: Share; Turn ignites RTB on two inventory platforms

ADOTAS – Perhaps Peter Gabriel should update his iconic 80s pop song “Big Time” for the next generation: “Real Time.”

Just as search engines are making deals to feature real-time status updates, advertisers are developing better processes to bid on specific pieces of inventory second by second. In the latest development in the evolving real-time bidding (RTB) universe, media-buyer Turn has launched real-time bidding across the inventory platforms of AdMeld and PubMatic.

In effect, display campaigns will benefit as marketers can use Turn’s targeting software to instantly bid and buy appropriate inventory from both AdMeld’s and Pubmatic’s platforms.

“Media buyers and publishers alike will benefit tremendously from a highly efficient market where the most valuable advertising can be placed in front of the most valuable users — all at the right time and at the right value,” said Bill Demas, president and CEO of Turn.

Preliminary campaigns using the integration from the new partnership have elucidated the potential of RTB. Over 17 days, click-through rates improved as much as 135% compared to non-RTB inventory, with up to 150% increases in conversion rates and 145% jumps in effective cost per action.

The Turn announcement comes a day after Microsoft released plans to launch RTB on its ad exchange AdECN in January. While questions surround whether advertisers and publishers will be able to employ and afford the technology, certain companies seem to be adamant about making RTB commonplace.

“Real-time bidding represents the next evolution of display advertising, and unlocking its true potential requires sophisticated technologies on both sides of the transaction,” said Michael Barrett, CEO of AdMeld.

Reader Comments.

Let’s keep Peter Gabriel’s “Big Time” untouched. Here is why,
Advertiser / Marketers are trying to decrease their cost per action, so “… 145% jumps in effective cost per action.” actually means bad news for them. Quick math lesson:
ROI = CPA target / effective CPA so I.e CPA/X > CPA/1.45X or 10/8=125% ROI which is a lot better for every advertiser than 10/11= 91% ROI (roughly)

Also, no indication on volume: Increasing 8 conversions to 12, also means 150% but all the technology and hardware to support RTB infrastructure can be very costly.

Lastly, who assumes the benefit in “successful optimization” most of the time, the network just rips a bigger margin.

Big Time, I’m on my way I’m making it, big time, oh yes…..

Posted by Eran | 12:39 am on November 2, 2009.

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