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Nexage: How mobile RTB is pushing audiences, spending
According to some experts, programmatic - or real time bidding (RTB) - advertising spends will account for at least half the mobile ad spend with in the next few years. This increase in RTB spending is pushed by the data rich audience segments delivered.
Kristina: RTB isn't new, and has been showing strong growth for online display and other ad units. We're now starting to see an uptick in mobile RTB, why now?
Victor Milligan, CMO, Nexage: Mobile RTB is surging. As evidence, Nexage just crossed the 50% threshold where 50% of spend through the Nexage Exchange is through RTB.
I think the reasons are many but can get boiled down to three: it creates a superior targeting environment as buyers capitalize on an expanding set of 1st and 3rd party, agency-unique, and CRM data; it creates efficiency at scale which is critical given how fast mobile advertising is growing; and it has the dual value of enabling growth while delivering transparency and controls.
The other important point is that the benefits of RTB - or programmatic - accrue to nearly everyone, including publishers, buyers, agencies, and data providers. This shared benefit is creating a virtuous cycle: buyers are seeing more data-rich audience through programmatic which drives more spend and budget allocation, which drives more premium audience and so on.
Kristina: How important is programmatic buying for mobile advertisers?
Victor: First, I think advertisers see that the risk of mobile advertising has shifted: it used to be that the risk was being first and now the risks have shifted to not being late to market. With that said, the question is how.
Programmatic unleashes a very different and powerful opportunity for advertisers which are really driven by data and targeting. The "right message to the right person at the right time" is a useful way of thinking of this value. Buyers and agencies are able to leverage 1st and 3rd party data, agency-unique data, and CRM data that truly enhance their ability to micro-target consumers, and micro-target across channels.
Kristina: What trends are you seeing with mobile RTB?
Victor: The RTB exchange is proving to be a critical part of creating a highly productive targeting capability - the critical role is in great part due to the fact that mobile has to build this targeting environment without a 3rd party cookie that has been foundational for online. The RTB exchange sources and delivers 1st and 3rd party identifiers that enable buyers and agencies to build and use their own cookie for targeting and cross-channel linking. Likewise, the exchange is able to source, enrich and deliver contextual, behavioral, and location data so effectively that the exchange itself becomes the critical data delivery platform for buyers thirsty for more and more data
The second point is about the different types of programmatic markets. As premium publishers and buyers build out their programmatic businesses, they will inevitably seek different market configurations: first-look markets, exclusive private exchanges, programmatic guaranteed and direct deal markets. Each of these markets is able to meet specific long-term or situational needs. RTB provides a superior and flexible platform that is able to fully support and govern these market types.
More from Victor and Nexage tomorrow, including his top tips for better mobile programmatic buying.
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