14 Answers About Real-time Bidding and Mobile Advertising

Real-time bidding (RTB) and mobile advertising are a match made in direct marketing heaven, Victor Malachard seems to think.

The CEO of Adfonic, a London-based mobile advertising buying platform provider, answered a few questions recently about the practice many marketers may be considering adding to the marketing mix in 2013.

Target Marketing: Marketers are concerned about display ad networks that are perceived as cheap and, generally, promoting bad places for their ads to run. What advice do you have for marketers using RTB for this?

Victor Malachard: Mobile RTB is transparent. Instead of opacity around exactly where inventory prices have come from, with mobile RTB, advertisers can control the prices they’re willing to bid at.

  • Mobile RTB is more accurate. Rather than treat inventory as blocks with fixed prices, mobile RTB algorithms operate at the level of each individual impression, employing demographic and behavioral data to decide whether to bid and then at what price;
  • Mobile RTB is fair. It uses market dynamics to achieve a true inventory value based on what many bidders quote …

TM: What are the growth areas for RTB? (A look at 2013 …)

VM: Premium mobile publishers are making their remnant/unsold inventory available on RTB. This is because it’s simply the easiest, most efficient way to move this inventory at scale;

  • We will see traditional online RTB exchanges become more savvy about incorporating mobile RTB into their traffic. While the benefits of RTB apply equally to online and mobile, there are significant differences in implementation with mobile, such as using Big Data and smart algorithms to get around the lack of cookies for targeting;
  • We’re seeing increased use of data from third-party data providers to gain more efficiency in bidding at the per-impression level. This will continue, including data from mobile operators, to drive more value.

TM: How effective is RTB at unifying advertising channels?

Heather Fletcher is senior content editor with Target Marketing.

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