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Will real-time bidding revolutionise mobile advertising in 2013?

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5th Apr 2013
Contributor MyCustomer.com
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2013 will see a fundamental shift in favour of mobile technology that in turn will impact the landscape of mobile advertising.

That's according to the recent report Inside Mobile Advertising from M&C Saatchi, which points to the growing number of smarter mobile ad networks with built-in real-time bidding (RTB) capabilities – whereby ads are bought in real-time via an auction.

As an advertising technology, RTB is growing and changing not just the manner in how ads are served but to whom. Figures from Infectious Media showed that RTB ad sales increased year-on-year in the UK by 112% and now accounts for 12% of total display advertising. 

Whilst real-time ad serving is still relatively new in mobile, M&C Saatchi believes that its proliferation will be faster and exceed its original uptake in the fixed online world.

In the fixed space, an advertiser or agency cannot track a user’s online behaviour and activity. To overcome this, the advertiser will use Demand Side Platform resources to identify and learn traffic models that lead to an end-user activity, such as an app download or viewing a video, said the agency.

According to the report, this type of predictive end-user mobile traffic analysis, plus the ability to access mobile ad inventory in real-time with extra layers of targeting, is why advertisers and agencies will increasingly invest in their own in-house mobile DSP resource in 2013.

James Hilton, global CEO, said: “Thanks to Demand Side Platforms and real-time bidding, mobile ad networks in 2013 are getting smarter. This in turn is changing how brands and agencies purchase mobile inventory, giving them more control over the process and letting them reach specific consumers more accurately with targeted and relevant ads.”

MyCustomer.com recently examined the rise of RTB and asked a number of industry experts whether the technology will become the future of advertising?

Simon Ross, media manager at Ladbrokes Bingo, said: “Real time is the future of advertising full stop, we have seen this in the display channel with real time auctions growing and subsequently becoming key to display channel, this too could have a similar impact.”

Richard Speigal, who runs an online advertising company and helped install a self-serve advertising system on Bath Mums, said that we should expect to see self-serve become an important part of the landscape rather than a complete game changer. “It’s certainly one to watch over the next few years. Publishers famously earn very little from online ads and this model offers an important fix for that,” he said.

To read the full article on real-time bidding, click here.

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