Real-Time Bidding Example
Let’s say I’m the marketing manager for Silk, a UK-based beauty brand that just launched a new brow line and is running a marketing campaign to promote it.
I set up the ad campaign on a Demand-Side Platform (DSP) where I specify that I want to target users who regularly shop for makeup products, who are located in the Manchester area, and who are between 18 and 30 years old. I also note that I only want my ads to be shown on sites related to beauty and lifestyle.
So, what happens next? A user visits a cambodia telegram data publisher’s site, and the publisher’s Supply-Side Platform (SSP) sends a bid request to the ad exchange. Then, my DSP evaluates the impression’s value. The DSP determines whether the user meets the parameters outlined in my campaign, and if they do, the DSP submits a bid.
Of course, not every bid is a winner. But if Silk has the winning bid, then once the page loads, the user will see my ad, and Silk will pay the cost associated with the bid.
That’s real-time bidding on a single ad space for a single user — but most likely, this process will happen thousands of times on different web pages over the course of Silk’s ad campaign. Silk’s paid ads manager will then monitor the ad’s performance on the DSP to see whether the ad is reaching the desired audience, or if the parameters should be adjusted.
As with any marketing tool, the cost of real-time bidding for programmatic ads varies substantially depending on your unique use case. But first, remember: The price of an RTB campaign is measured by the cost per thousand impressions or CPM.
In my experience, the CPM for a given ad campaign will change based on who your target market is, the budget you’ve allocated to the campaign, and how long you’ve allotted for the campaign to run.
If you’re looking to reduce the cost, you can adjust these factors to be more limited. In contrast, if you have more budget available, you can always explore opportunities to expand these factors.
In general, the CPM for a campaign targeting a niche audience will be higher than that of a campaign targeting a broader audience. Of course, there are substantial advantages to targeting a more niche user base. However, if you’re looking to reduce the cost per impression, broadening the audience may be helpful.
How to Measure the Success of Real-Time Bidding Ads
Of course, any marketing strategy is text services only as useful as your ability to measure its success. When it comes to real-time bidding on programmatic ads, there are several metrics that I’ve found can be effective ways to measure how well a campaign is working.
