4 July 2013

Demand-side platforms herald a revolution

 

Online advertising is experiencing a revolution.

Moving away from traditional, ‘black box’, models of online advertising where digital marketers have had little to no transparency around how campaigns are actually performing, the arrival of demand-side platforms (DSPs) and real-time-bidding (RTB) is a game changer.

With conversion rates improved by as much as 150%, Storm ID’s clients have already begun to experience a strong return on investment (ROI).

And we’re not the only ones celebrating the incredible uplift as RTB-based advertising is forecasted to jump from 2011’s $1.4 billion spend to $13.9 billion in 2016.

So how are DSPs managing to outperform traditional online advertising?

The benefits boil down to visibility and flexibility.

Insight V The ‘Closed Shop’

Traditional online advertising has often been seen as something of a ‘closed shop’ with vital information shrouded in secrecy.

Thanks to the arrival of DSPs however, advertisers now have the ability to see which display domains and ad creative are working and those that aren’t.

This data supports the business case to drop underperforming ads, allowing spend to be swiftly reallocated to those that do which, in turn, reduces wasted budget and maximises return on investment in one fell swoop.

In Storm ID’s case, the move to DSPs has substantiated ROI – for example – an ad campaign spend of £11,000 on traditional online advertising yielding 7,000 impressions versus a spend of £13,000 on DSPs yielding over 25,000 impressions.

Flexibility V Getting What You’re Given

Other features that are supporting such noticeable improvements are real-time-bidding.

RTB helps digital marketers better reach the ad’s intended audience and also grants greater control over what’s spent.

In this case, display inventory is bought on an auction basis, allowing users to manage and prioritise the cost of bids to prevent overspending.

By deploying these marketing methods Storm ID have managed to lower clients ad spend whilst securing an increase in conversions.

How?

We were able to prioritise bids on the domains that converted and ended spend on those that didn’t. A simple yet highly effective step with immediate visible results.

Highly Targeted V The Scatter Gun Approach

Since we started using DSPs, our clients have seen conversion rates increase by as much as 150% for the same ad spend.

This is mainly due to DSPs’ targeting capabilities which ensures our clients’ messages get in front of the people that matter the most.

For example, if you’ve got a particular MOSAIC profile you wish to target, this is possible, as is targeting web users by location, postcode, age and gender – granular targeting that simply wasn’t possible using traditional online advertising methods.

This process has allowed us to begin a cycle of ongoing optimisation that squeezes even more value out of our client’s online ad spend.

Where Next?

Transparency in the world of online advertising has been long overdue but finally it’s here.

To find out how DSPs will significantly improve the ROI of your online ad spend, speak to Kevin Munro – Storm ID’s Head of Digital Performance.

Viva the online advertising revolution!

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