Real Time Bidding through Intelfeeds
E very ad impression going through the Intelfeeds Demand Side Platform is traded via real time bidding (RTB). Each ad is competing against hundreds or even thousands of others to get to the desired customer.
This technology allows Intelfeeds to select only the most interested customers for a campaign and to reach them across the majority of the websites on the internet. Each ad impression is delivered at the lowest possible price permitted by the market.
HOW RTB WORKS
rading ad impressions in real time was first invented approximately a decade ago. 2006 marks the first ad impression executed through an auction in real time. Only in the last five years has this technology gained more global reach, being implemented by the larger ad networks and ad exchanges and impacting the lives of the end users of the internet. The algorithms used to deliver the best price for each impression are still in their initial stages of development and are constantly changing and improving. By offering RTB, the Intelfeeds demand side platform brings to the table guaranteed exposure to the latest technologies available on the global market.
Real time bidding is the process through which ad inventory is bought and sold on a per-impression, per-click, or per-action basis via an instantaneous programmatic auction, following rules preset by the advertiser. It allows the advertisers to manage and optimize their presence on multiple ad networks from a single user interface by laying out specific expectations for the performance of a campaign and monitoring their execution.
The process of programmatic advertising begins when a user visits a website. This tells the ad server to request an offer matching the user’s profile. This often includes demographic information, browsing history, location, search results, webpage context, and a few dozen other factors. The request is then passed from the server to the platform serving the ads. There, the various bids from advertisers are assessed based on their value and compatibility with the user profile. After the screening, the best bid is selected and served, and the platform records the impression. This process repeats for each ad space, and every transaction is executed in mere milliseconds. The bidding happens autonomously and includes hundreds or even thousands of advertisers. The mechanism behind bidding for particular audience segments can be quite complex and can take into account various pieces of data including past spend behavior and other reoccurring consumer patterns.
The chart above details the hourly delivery ratio of supply (impressions) and demand (bids) within a typical 24-hour period. What transpires from the graph is that in the morning the demand is considerably higher than the supply, while in the evening the correlation is inverted. This imbalance is due to the fact that the majority of advertisers distribute their budget daily, as opposed to hourly. The more well-informed advertisers leverage this by allocating their ads at the right time of the day, thereby optimizing their spend by using RTB.
The data is taken from Shuai Yuan et al. “Real-Time Bidding for Online Advertising: Measurement and Analysis” (2013), Proceedings of the Seventh International Workshop on Data Mining for Online Advertising.
The RTB algorithm in its basic form. The fundamental idea is easy to grasp:
An incoming impression i is evaluated by the campaign j based on the probability of the user clicking on the ad. It then bids a certain amount vij – αj, where αj denotes a variable used to optimize the bid price in real time. Henceforth, when the auction involves more bidders (representing larger competition), the probability of making a successful buy decreases and therefore αj will become a smaller or a negative number. The bid price vijincreases and the advertiser starts winning impressions.
Cited from Ye Chen et al. “Real-Time Bidding Algorithms for Performance-Based Display Ad Allocation” (2011), Microsoft Research.
Intelfeeds is a demand side platform enabling advertisers to programmatically buy ad spaces from multiple sources of inventory – standard desktop websites, mobile apps, search engines, video channels, and social networks. What makes us different from an ad network is our incredibly broad coverage (number of sites); wide range of digital ad products and advanced platform capabilities, including all standard formats across desktop, mobile, video, and dozens of interactive formats; a comparison algorithm with an unparalleled level of sophistication; all of which enable the advertiser to craft an very detailed audience profile. Intelfeeds speaks to the needs of both small and medium-sized advertisers aiming to find the right audience and optimize their presence on the market, as well as ad agencies aiming for high impact takeovers which guarantee volume and coverage on all platforms.
Large-scale advertisers often manage relatively complex campaigns. Besides the advantages of RTB, Intelfeeds offers a unified platform for centralized management and reporting. Advertisers are able to track the entire progress of their campaign and to make changes and adjustments in real time. Intelfeeds delivers audience integration and access to dozens of ad networks and exchanges. This means that users who have seen an ad message on Facebook for example can also be retargeted on more than 95% of all websites supporting programmatic ads.
If you wish to find out more about RTB, do not hesitate to contact us. Our consultants will be happy to explain in detail our entire process.