Programmatic buying also known as Real Time Bidding (RTB) was a topic at today’s Mobile Marketing Forum in New York. Publishers online have been allowing their inventory to be sold through programmatic buying programs, but mobile is poised for growth in this area. Right now there is a lot of inventory in mobile advertising that could be sold to advertisers who execute a strong strategy. The key for publishers is to package their offerings by clearly indicating the value added to advertisers, identifying the targets and the deliverables. One clear selling point for mobile ad inventory is the location based data that can be mined for advertisers.
Publishers may be worried about selling their premium content in an auction system, but the publishers who use these services can retain their premium clients and sell RTB to other advertisers who would not normally purchase premium content. For example, the Wall Street Journal has premium advertisers, but sells to Virgin Atlantic Airways via RTB, the only method this company uses to buy advertising from the WSJ.
The advantage in RTB for publishers is to sell more inventory at higher prices while advertisers buy the targets they really want. It’s a win/win according to Rubicon.
The market is shifting with 15-20% of online ads purchased programmatically online and soon in mobile. Marketers can still get strong CPM’s, but the RTB system will lead to higher rates going forward.
Source: Mobile Marketing Association Forum, May 9th, 2013: Maximize Mobile Advertising Revenue – Can Programmatic Help? with Joe Prusz, Ingrid Lestiyo and Josh Wexler