RTB

Amazon Launches An Ad Exchange To Rival Facebook And Google (FB, GOOG, AMZN)

Source: http://www.businessinsider.com/amazon-launches-an-ad-exchange-to-rival-facebook-and-google-2012-12

Jeff Bezos

Amazon has created a real-time bidding ad exchange, according to Adweek, putting it in a head-to-head battle with Facebook and Google for so called retargeting dollars.

Here’s how it will work: If you’re browsing on Amazon but decide not to buy that DVD of “Star Wars,” Amazon will drop a tracking cookie on your browser. When you go elsewhere in Amazon’s exchange network — which includes Amazon, IMDb, DPReview, and various ad exchanges and publishers that Amazon has a relationship with — you might see an ad pop up offering you another chance to buy “Star Wars.”

It’s pretty much exactly what Facebook has done with its FBX RTB exchange. Some analysts believe that Facebook may be able to generate $1 billion a year from FBX.

The advantage Amazon will have, however, is that it can use its vast trove of shopping data to target users with ads based on their purchase histories. Neither Facebook nor Google (which also does RTB retargeting via DoubleClick) can do that. Adweek says:

The self-serve RTB platform would hypothetically function similarly to Facebook’s Ads Manager in terms of how buyers could target their ads. Sources said Amazon is extremely protective of its data and wary of providing outside access, so like Facebook, Amazon’s platform would enable buyers to create targeting segments such as “men; aged 25-34; in Califo! rnia; in terested in high-definition TVs; who have purchased how-to books and home improvement tools.” But Amazon is not about to hand over its customer’s names or individual buying histories.

The three giants — Amazon, Facebook and Google — now face off in RTB like this:

Amazon: Owns the best database of actual shopping history and purchases. This type of data is like gold for advertisers. Clients have long awaited the day when “the sleeping giant,” as it is known in the ad biz, finally wakes up to advertisers. That day has dawned, it seems.

Facebook: Owns the best database of personal information about consumers. 1 billion users strong, with all their interests and friends, it’s terrifically useful stuff for marketers.

Google: Has traditionally dominated the “purchase intent” sector of the category. When people search for “Star Wars DVD” online, that’s a pretty good indicator they want to buy said movie. Google has been serving ads (and retargeting ads) against such requests for years. But its data on shoppers and their histories has never been as good as Amazon’s or Facebook’s.

Disclosure: The author owns Facebook and Google stock.

SEE ALSO: ANALYST: Facebook Is Generating $1 Billion A Year From Its Ad Exchange

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Monday, December 17th, 2012 news No Comments

The Massive Growth Of Facebook Ads Got This Startup $7 Million In Funding

Source: http://www.businessinsider.com/triggit-gets-74-million-in-series-b-funding-2012-11

zach coelius triggit

Triggit, the so-called “demand-side platform” that buys ads in real-time bidding exchanges for about 200 clients, won $7.4 million in series B funding from Spark Capital and Foundry Group, the company said.

The new investment came after explosive growth in the business Triggit is placing inside FBX, Facebook’s RTB ad exchange.

FBX works by allowing outside advertisers to drop tracking “cookies” on users’ web browsers. When those users sign into Facebook, the cookies triggers ads promoting those advertisers. Triggit’s clients include Hilton, Kmart and Lowes.

Spark Capital founder Santo Politi said Triggit is “on track to become very profitable.”

CEO Zach Coelius told us his company handled about 200 clients internationally, all of which spend upwards of about $10,000 a month on RTB ads. The company has grown from about a dozen staff at the beginning of the year to 32 employees today.

Triggit place ads in all the major RTB exchanges, but FBX is driving the growth, Coelius says: “We’ve seen 300 percent topline revenue growth[from Facebook ads] since FBX launched in June.”

SEE ALSO: ANALYST: Facebook Is Generating $1 Billion A Year From Its Ad Exchange

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Thursday, November 29th, 2012 news No Comments

Here’s The Staggering Number of Ads Facebook Serves On Its Exchange Every Day (FB)

Source: http://www.businessinsider.com/the-size-of-fbx-facebooks-ad-exchange-2012-11

Zuckerberg in Russia

Appnexus, the online ad marketplace intermediary, hosted an annual summit in New York yesterday and disclosed some interesting metrics about the size of its business as it relates to Facebook.

The company is one of let slip that Facebook Exchange — the real-time bidding ad exchange in which advertisers are allowed to match their cookies to a Facebook cookie in order to retarget shoppers inside Facebook — now serves a staggering 7 billion ad impressions daily. According to AdExchanger:

AppNexus is quickly ramping up on the Facebook Exchange, where it is one of approximately 15 real-time bidding partners. It now has exposure to 7 billion daily impressions on FBX, up from zero in July — a large and important new inventory source.

We recently told you that FBX has “quadrupled” the size of the RTB market, and that Facebook believes the total ad exchange opportunity could be as big as $2 billion annually.

Related:

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Thursday, November 8th, 2012 news No Comments

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Tuesday, March 23rd, 2010 digital No Comments

RTB – real-time bidding may make ad exchanges more efficient, but it still won’t save display (ads)

in response to this mediapost article
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113621

While RTB will make ad exchanges even more efficient, it may not be that necessary.

RTB depends on 3 things: 1) inventory, which depends on how many people hit the page to generate an impression, 2) clicks, which depend on people clicking something, and 3) bidders, the more niche you get, the fewer bidders there will be.  Inventory does not change rapidly. Clicks take time to accumulate (to yield click rates, which are a necessary ingredient in the RTB calculation). And if there are too few bidders the price of the auction “item” won’t appreciate or depreciate much or rapidly. Because of these 3 things, making bidding real-time versus non-real-time (i.e. overnight) may not make it significantly better or move the needle much on efficiency and ROI.

And RTB will still not save “display” ads. The golden age of display was in the mid 90s when people tolerated ads when they read content. They are now trained to avoid looking at the top and right of web pages So while RTB may increase the ROI of display ads by increasing click rates from a percentage with too many zeros to count to something sligtly higher, display ads are still ignored by users and will still not generate measurable business impact for advertisers.

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Saturday, September 19th, 2009 display advertising 1 Comment

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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