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BizReport : Advertising archives : March 31, 2015

How to use native, RTB as complimentary options

From search to mobile, there are a plethora of ways to use different advertising units and buying options to compliment one another. According to one expert native and RTB are another of those complimentary combinations. Here's how brands can better use these formats.

by Kristina Knight

Kristina: How can native and RTB options compliment each other?

Lon Otremba, CEO, Bidtellect: I think they are perfect complements, since IAB released a Native-specific RTB spec, Open RTB 2.3, which reflects the fundamental differences between traditional display exchanges, and how Native needs to function. This means that advertisers and publishers in Native can now realize all the advantages of exchanges. When demand has open access to potentially hundreds of thousands of supply sources in real time, and the market prices the inventory at auction, two very big dynamics take hold: pricing efficiency and scale. Pricing efficiency because advertisers can specify exactly the type of audience they are looking for and bid for it, and publishers can offer their inventory in the same way. Scale happens because advertisers on an exchange can have unfettered access to huge inventory sources at once. It's perfect timing, because with the flood of ad dollars into the ecosystem that's coming now, an exchange environment takes a lot of friction out of the system.

Kristina: What trends are you seeing in native currently?

Lon: There are several trends in Native that are obvious, and a few not so obvious; all are pretty much undeniable. It is fairly obvious that Native is growing rapidly, but one of the primary drivers of that growth, which may not be so apparent, particularly in the past six months or so, has been the rapid shift of brand advertising spending out of display and into Native. While probably still in the single digits percentage-wise versus display, the dollar flow and the rate of shift is having a very large impact. This is also leading to a shift away from a predominance of direct-response based KPIs typical in display, toward more brand-oriented metrics around engagement. Another big trend is the desire for agencies and brands to more rapidly scale their Native campaigns, as they seek the reach capabilities they are used to in display and other media (such as TV). Getting that scale in the past has been challenging, but with the rise of open Native exchanges, such as Bidtellect's, brand advertisers are going there to get that scale. Finally, brands are beginning to think like publishers, meaning they are beginning to recognize that creating quality content encourages consumers to engage, and they know that if consumers engage with their content, they are engaging with their brand.

Image via Shutterstock

Tags: advertising, Bidtellect, native advertising, rtb advertising

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