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How Useful is Dynamic Media Pricing

Kerry Guard • March 29, 2012 • 2 minutes to read

Real time bidding, or RTB, is the process in which media platforms like Data Xu and Rocket Fuel dynamically bid on every single impression that you "the advertiser" has agreed to purchase.

This means that an ad buyer, through the platform of their choice, can value each individual opportunity to buy an ad impression based upon audience, site data & more before agreeing to purchase said impression.

So What Does That Have To Do With Dynamic Media Pricing?

Well, bidding on each individual impression in real time drives down the actual cost you are paying for every single impression, as not all impressions are created equal. A few items that RTB platforms evaluate include:

  1. Based on third-party data, does the user who is about to receive an impression match up with other actionable users (click, purchase, etc)?
  2. Is the environment (i.e. site the impression will appear on) conducive with the type of content that drives actions? Also, is it brand safe content?
  3. After purchasing the impression, will the RTB platform be able to back into the agreed-upon key performance benchmark?

Companies like the aforementioned Data Xu make 100,000 decisions per second when evaluating impressions in real time!

The examples listed above are just three of hundred's of thousands  that RTB systems utilize to make purchasing through their platforms more efficient and effective.

How does your company use RTB to make media plans more efficient?

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