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The pros and cons of real-time bidding for mobile

Mobile Marketer

Real-time bidding promises to impact the way in which mobile ad inventory is traded and can significantly boost performance, according to a new report from Adfonic. However, it still comes with some challenges for marketers and its future role is by no means guaranteed.

In a report that was released today, Adfonic compares RTB with non-RTB methods for running mobile advertising campaigns and finds that the clickthrough rates for RTB ads is 97 percent higher on average. Results are even higher for certain verticals such as fashion and style and when RTB is combined with rich media.

“Today, RTB is still a ‘mid sized’ part of the mobile ad space,” said Howie Schwartz, CEO of Human Demand, a mobile DSP focused on real-time bidding. “Twelve months ago, I would have said that it is a tiny part, so we have experienced significant growth and scale.

“OpenRTB as a standard has really sped up integrations and access to supply,” he said. “I think the next big growth areas in mobile RTB this year will focus on: hyper local, mobile audience, rich media, mobile video.”

Lifting results
RTB is the programmatic trading of mobile ads based on algorithms. By bidding for inventory in real time, advertisers can access impression-level attributes very specific to their audience and are likely to pay less because they eliminate most of the friction from the sales process.

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