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The 5-Minute Real-Time Bidding (RTB) Primer

225 Bush St., Suite 1150, San Francisco, CA 94104 | 866.497.5505 | www.bizo.com | Follow us on Twitter: @bizo

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WHAT IS REAL-TIME BIDDING?Real-time bidding (RTB) is an innovative way for marketers to reach the specific

audience segments they are targeting through an online auction system, one

impression at a time.

Real-time bidding services give you access to inventory from multiple sources

simultaneously. As each impression is delivered, an ad exchange API analyzes the data

about the user available through cookie targeting, which may include location, industry,

and even job title; it can also determine whether or not the individual has previously

visited the company’s site. A real-time bid manager is then used to evaluate the data

available for each impression, and automatically places a pre-determined, maximum

bid for the impression if it meets your desired criteria. If you are the highest bidder,

your ad will be displayed to that prospect.

For instance, a retailer specializing in Apple accessories and an electronics

manufacturer may both be interested in targeting users who frequently view

technology-related blogs. RTB allows these advertisers to locate users who match that

target profile and submit a maximum price bid to deliver an impression, with the ad

delivered by the highest bidder.

WHY USE REAL-TIME BIDDING?Real-time bidding has many benefits for marketers, including:

» Access to more high quality leads

By analyzing inventory on a per-impression

basis, you have the capability to reach only the

high-value prospects you are seeking, rather

than purchasing bulk impressions through

an ad network or publisher, which delivers

impressions to a broader audience that is less

likely to fit your company’s ideal consumer

demographic.

» Cost-efficiency

When using a real-time bidding system, you’ll set a price cap for each impression,

as well as a budget for your entire RTB campaign. Often, your ad will be purchased

for a lower amount than your maximum rate, depending on your competitors’ bids.

This approach delivers higher value than traditional display ad campaigns. In one

case study, an advertiser was able to win 52 percent more impressions through

RTB advertising than through traditional display.1

BY ANALYZING

INVENTORY ON A PER-

IMPRESSION BASIS, YOU

HAVE THE CAPABILITY TO

REACH ONLY THE HIGH-

VALUE PROSPECTS YOU

ARE SEEKING

1 http://blog.bizo.com/blog/product-development/realtimebidding

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» Opportunities for greater campaign optimization

Real-time bidding can provide you with highly detailed analytics insights about

your prospects. You’ll be able to use this data to determine the most effective

strategies for reaching specific segments of your target market, and optimize

future campaigns to deliver greater results.

4 TIPS FOR OPTIMIZING RTB CAMPAIGNS EFFECTIVELYWhen managing an RTB campaign, carefully consider your target parameters for each

campaign. A number of targeting options are available:

1 Targeting users who have previously visited your site or clicked on your ad

This practice, also known as ad retargeting, is a simple way to recapture prospects

who have already entered your marketing funnel and are more likely to make a

purchase.

2 Targeting multiple data types

Many real-time bidding platforms allow marketers to set parameters according to

a wide range of variables, including location (city, state, country), type of ad slot,

site URL or vertical, and more. The more specific you make your criteria, the fewer

impressions you will serve, but the more relevant your campaign will be.

3 Targeting multiple weighted parameters

In addition to targeting multiple segments, you can weigh your CPM bid according

to the value of each data point to your company: For instance, if you’re promoting

a B2B web service for CFOs, you might offer one CPM value for general business

targets, and a higher CPM for those whom you can determine are in finance-

related positions. Weighting your parameters will help to ensure that you are able

to make the bulk inventory purchases you want, while maintaining the relevance of

all of your prospects.

4 Working with a premium RTB platform

As RTB grows in popularity, it is becoming more difficult to verify the quality of

each ad exchange and its audience. In order to reach a sophisticated B2B audience,

consider investing your marketing spend on a premium RTB platform geared

for your target market. The differences are substantial: Bizo’s Business Audience

Exchange delivered 33% more quality leads than its general competitors, and the

cost per lead was 67% lower than on other platforms.2

2 http://blog.bizo.com/blog/product-development/realtimebidding

THE FUTURE OF REAL-TIME BIDDINGReal-time bidding first came into prominence in 2009, and has rapidly gained market

share since that time: The percent of available RTB ad inventory sold through Google’s

DoubleClick Ad Exchange jumped from 8 percent in January 2010 to 68 percent in May

20113, and real-time bidding now accounts for between 30 and 40 percent of all online

ad spends.4

Marketers are choosing to deliver ad impressions

through real-time bidding due in large part to

the platform’s nearly unlimited customization

options and the valuable data insights that the

platform offers.

RTB’s rapid growth shows no signs of slowing

down: Forrester Consulting estimates that the

market will grow from $190 million in 2011 to $387

million in 2013. While RTB advertising should not

replace traditional display advertising, it can

serve as a powerful supplement to your existing

ad campaign.

HOW TO GET STARTEDAlthough it’s possible to directly access ad exchanges via online platforms known

as demand-side platforms and trading desks, this is not an ideal method for most

marketers to optimize their online advertising campaigns. There is a high level of

complexity involved in managing real-time bids, and marketers who lack this

specific expertise may not be making the most relevant buys or managing

budgets appropriately.

In order to optimize your campaign spend, it can be helpful to partner with an

organization with specific expertise in the RTB market. Such a partner can help

you to target the appropriate prospects, maximize your spends, and ensure that

you are getting the most out of the sophisticated possibilities offered by a

real-time bidding system.

Interested in learning even more? Visit online at www.bizo.com/resources or call 1.866.497.5505

225 Bush St., Suite 1150, San Francisco, CA 94104 | 866.497.5505 | www.bizo.com | Follow us on Twitter: @bizo

MARKETERS ARE

CHOOSING TO DELIVER

AD IMPRESSIONS

THROUGH REAL-TIME

BIDDING DUE IN LARGE

PART TO THE PLATFORM’S

NEARLY UNLIMITED

CUSTOMIZATION OPTIONS

AND THE VALUABLE

DATA INSIGHTS THAT THE

PLATFORM OFFERS

3 Google, “The Arrival of Real-Time Bidding,” July 2011.

4 http://www.economist.com/node/18651104?story_id=18651104