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What is a Private Mobile RTB Marketplace and How Does it Work?

Written on
Jun 5, 2014 
Author
Kathie Green  |

ADOTAS – A private mobile RTB marketplace connects publishers to demand sources. The advertiser, or demand side, bids on mobile ad impressions in real time from publishers, or the supply side. The term “private” means that a specific publisher has opted to sell their inventory on an exchange, but they limit and control the demand side.

What is RTB (Real-Time Bidding)?

Mobile RTB is a real-time auction in which the demand side bids on publishers’ ad slots, which may include native, video, and full-screen interstitial ads. The ad slot goes to the highest paying demand partner, and the winner’s ad is displayed on the publisher’s inventory.

Real-time bidding is the best way for mobile publishers to monetize their apps or mobile sites. The demand partner that is willing to pay the highest CPM for that impression wins the publisher’s inventory. RTB gives publishers a way to capture demand that exceeds the capacity of their in-house sales team. Another benefit of RTB is that it allows a publisher to scale direct sales efforts by using RTB as the delivery method for direct buys.

What is a Private RTB Marketplace?

  1. A private RTB marketplace allows publishers to control which demand partners, advertisers, agencies, and brands buy their inventory. In the private set up, the publisher controls three major parameters. The publisher is able to:
  2. Determine the whitelist of approved demand partners, blocking buyers who could otherwise bid in a public exchange model.
  3. Set price floors or minimums. This helps helps keep publisher CPMs high, so they can command a premium for their inventory.
  4. Tier access by providing first right of refusal to a premium demand partner. This feature allows brands to bid first, before direct advertisers, which ensures ad quality.

What are the Benefits?

RTB enables publishers to make their first-party data actionable for advertising demand partners. It also allows the inclusion of third-party data for targeting at the exchange level, such as geotargeting and audience segmentation data. Because the data targeting is done on the exchange, the publishing partner doesn’t need to implement this technology on their end.

For more on mobile marketing trends and best practices for smartphone app marketing, download the TapSense eBook, A Complete Guide to Mobile Marketing for 2014.





Kathie Green is the Marketing Manager at TapSense. Previously, she held marketing roles at InMobi, the largest independent mobile advertising network, and Right Management, a global consulting firm. She started her career at Paramount Pictures in Consumer Products and In-Theatre Marketing. Kathie graduated from Occidental College with a B.A. in Anthropology and is a Women 2.0 San Francisco event organizer.

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