Comments on: Turn ignites RTB on two inventory platforms http://www.adotas.com/2009/10/turn-ignites-rtb-on-two-inventory-platforms/ Where Interactive Advertising Begins Fri, 10 Feb 2012 17:07:34 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Eran http://www.adotas.com/2009/10/turn-ignites-rtb-on-two-inventory-platforms/#comment-791989 Eran Mon, 02 Nov 2009 05:39:58 +0000 http://www.adotas.com/2009/10/turn-ignites-rtb-on-two-inventory-platforms/#comment-791989 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..... 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…..

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