RTB for you and me – thanks @NYCMcG

Dec 17, 2010 - Krux Digital - 0
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Ramsey McGrory offers up a terrific opinion piece on RTB and its impact on the industry. Many of you have surely read it. It’s perhaps the best ‘inside baseball’ blog post that we’ve seen in quite some time.

His four point outline of buy side analytic opportunities is sobering.

In the absence of widely understood and accepted principles around this and if I were a buyer, I would consider:

1) Tracking overall sell through over time for a publisher, which helps my upfront negotiations because I’ll know how a publisher is trending on their sell through.

2) Capturing behavioral information if I can tie the cookie to URL characteristic (behavioral targeting) without delivering an ad after the bid request/response.

3) Capturing the URL either on the bid request or when an advertiser’s ad is served, use a third party to contextualize the page and store for subsequent behavioral targeting for the same or another advertiser.

4) Estimating the number of times I might see a user on the internet (frequency)…which translates into a scarcity multiplier or willingness to pay factor. By determining the frequency of finding an audience I can adjust my bidding up or down.

The RTB-spawned information asymmetry risk is only now being understood. As noted in #1, agency trading desks can feed market learning upstream to provide significant advantage in traditional buying channels.

Meanwhile, #s 2, 3, and 4 reinforce the importance of publishers protecting audience data through whatever means necessary; pricing direct buys sensitive to all value drivers – content, context, and audience; and managing sales channel distinctions with religious fervor.

Thanks for the terrific piece, Ramsey. It’s triggered a lot of thinking around Krux and might just warrant a formal response as we close out 2010 and get ready for what is sure to be a sporty 2011.

Enjoy your weekend, everybody.

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