Real Time Bidding- A Boon for Both Mobile Developers and Advertisers

Use of Smartphones and mobile internet has gained extreme popularity in a last few years. This increase in the use of mobile internet has made marketers to focus seriously on it. Though mobile advertising has been developed in various forms but it still needs a great deal of development. A number of problems and concerns of advertisers and publishers are to be addressed for which all kinds of efforts are being made. Let’s have a glance at some of such issues that disturb both advertisers and publishers.

Mobile Developers and Advertisers

• User Experience and Monetization- All the developers under the sun are trying their level best to offer excellent user interface. But the ads featured to increase revenue can spoil the joy of users. Keeping this thing in view, marketers need to strike a balance between ads and the user experience.
• Amount of Revenue- It’s very common to see mobile app publishers to complain about their revenue. They all find the revenue to be less than expected. Most of the times, it’s due to incorporation of too many ads which doesn’t let the app produce desired user experience and users start to avoid it.
• Fill Rate- Sometimes developers find that a part of their inventory is not being utilized properly. Ad inventory must be consumed within reasonable time. Any inefficiencies in serving ads to the visitors may prove to be very harmful for an app publisher. Thus, fill rate suppose to be one of the biggest challenges before developers.

Real Time Bidding appears to be a suitable solution to the problems of publishers and advertisers. It helps in instant evaluation and sale & purchase of ad impressions. When users open an app, the Real Time Bidding Server sends the users attributes to the Demand Site Platform. According to these attributes, advertisers place bids for the ad impression. The advertisement of the highest bidder is shown to the user. This whole process happens just in a jiffy, leaving no space for any delays for the users. Let’s understand how RTB performs.

• More Concentrated Targeting- This process enables advertisers to judge the impression and relevancy of the ads served with the help of the user attributes passed on to the DSP through RTB server. It saves the users from confronting irrelevant and useless ads on one hand and allows advertisers to deliver relevant ads on the other.
• Higher Revenue- As discussed earlier, advertisers bid for ad impressions and the highest bidder is allowed to deliver his ad. Thus the revenue with developers goes to best possible extremes. It ensures high CPM for the publishers.
• Deals with Fill Rate- With the increase in the number of companies implementing RTB, the publishers are now able to connect to several DSPs for a single impression which eliminates the chances for inventories to remain unutilized.

RTB provides better and relevant ads to the users on one hand and higher revenue to the publishers on the other. Let’s see the advantages offered by RTB which are contributing to its day by day increasing popularity.

• Location- A mobile is to be kept all the time with its user. Where ever a person is going; to the restaurant, to the mall, to the club; his mobile stays with him. It simply means that the ads on mobile apps are always in his reach. Thus, there are more chances for the publishers to make money through the app.
• Control- Keeping the functioning of RTB in mind, anybody can simply guess the level of control , offered by it. When the ads are delivered on the basis of the user attributes, the process will definitely be more controlled. It enhances efficiency also.
• Mobile Ad Ecosystem- As we know, selecting the highest bidder increases the revenue for the publisher. Besides, in the absence of unutilized inventory, the cost efficiency reaches the next level.

When advertisers see that the ads are generating lots of revenue for them, they invest more and more money on RTB ads and thus add to the mobile ad ecosystem.
RTB can provide excellent results for all the parties involved i.e. app publishers, advertisers and end users. Moreover, it doesn’t compromise with the user experience.