Why RTB Might Not Be For You

Sep 7
13:01

2015

Eyal Katz

Eyal Katz

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Real-Time Bidding or RTB is becoming a popular way purchase ad space. True, RTB and programmatic buying still have a few hurdles they need to clear but if you want to be ready for the future, you need to ask yourself, is Real-Time buying right for me?

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While some claim RTB is the present and future of content monetization,Why RTB Might Not Be For You Articles others claim it’s the most over-hyped technology ever. There are many concerns for publishers when it comes to implementing RTB in their content monetization strategy. The first and biggest of these concerns is relevant mainly to large premium publishers making a nice profit selling premium inventory through traditional channels. Why mess with all that war of algorithms when there’s a guy with a truckload of cash already waiting for you in the parking lot?

Another relevant concern is data leakage and user security. The RTB process relies, among other things, on serving the right ads to the right users at the right time. During this process, the advertiser can plant a cookie on your user’s computer. He can then target this user with ads on other platforms that may be cheaper than the inventory you offer. This is good for the advertiser and the guy who offers lower floor prices, but not for you.

Yield cannibalization is another concern many publishers worry about. Remember the guy with the cash truck in your parking lot? By using RTB, this guy can bid only half the money in the truck on the same inventory he would have otherwise purchased from you for the whole cash load. And he might win the bid, thus paying you half of what he previously paid you for the same exposure.

The greatest fear you must overcome if you want to adopt RTB is the fear of losing control. When you negotiate with an advertiser, you know exactly how much you’re getting for what number of impressions. And you can even see the creative and decide if it’s right for your blog. With RTB, you’re getting as much money as some algorithms think you should be getting at any given time for each impression. They display the creative they deem most effective. Do you trust these algorithms to do all that?

Cashing In On RTB

At this point, you already understand that RTB is a good addition to your website monetization strategy. But don’t hurry and fire your direct sales team yet. If you want to get it right and make the most out of the battle of the algorithms, we’ve got a few tips for you.

1. Finding the right partner (or partners)

Much like any relationship, your relationship with your RTB service provider must be a good one. In essence, a good partner is one that will work with you to ensure you have the tools and knowhow to monetize all your unsold ad space inventory.

Such a partner will do so by working with your objectives in inventory yield optimization. At the same time providing you with tools to avoid cannibalization of premium inventory sales and maintain control of your pricing and ad quality.

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