Real-Time Will Redefine Media-Buying Efficiency
ADOTAS – Media buying is inefficient, says Forrester Consulting, and it can’t keep up with the swelling volume of online inventory. However, the real-time process, now in the experimental phases, will improve efficiency dramatically by 2011.
AdMeld commissioned the firm to study real-time media buying and its effects on the various players in the field — advertisers, publishers, agencies and ad networks, oh my! Forrester found that advertisers and publishers alike were shifting to a new media-buying approach that would allow for better targeting.
While acknowledging the many monikers given to this process, such as RTB, Forrester calls it dynamic media buying optimization (DBO), defined as “dynamically adjusting the price of an ad impression based on its specific audience data and performance history.”
Many agencies still depend on relationship-based sales approaches, which serve the offline world well, but are ineffective due to the humongous scale of online media. Ad networks are still distrusted in terms of transparency in pricing and inventory allocation.
However, Forrester noted that the transition to DBO is still in its early phase, and 2010 will be a year of experimentation before the process goes mainstream in 2011. The firm cited examples in a which a demand-side platform reduced data management requirements by 92% and an insurance company halved its cost of leads from $200 to $100.
Reader Comments.
We’ve been using RTB in the finanical markets for years, yet follow any financial transcation through the full cycle and there are middle men taking a cut the entire way. While markets give the “appearance” of efficiency, many will argue against the notation that markets are truly efficient.
Google adsense has been doing RTB since inception. But like these other markets “transparency” is greatly lacking. Does anyone get to see how much google pays out by ad unit? No. Yet that is how the bidding is done. There is the illusion of transparency, but none really exists. Is it the illusion that creates comfort? If not, relationships will still matter. After all, people trust people. Trust and reputation are complicated and fragile, they take time and many many good deeds to build up, but are easily shattered with one mistake. Illusions, are just that…
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