Real Time Bidding is the hottest ticket in the exchange space at the minute. Buy-side and sell-side all have (or are getting) RTB functionality. The AdX and the RightMedia exchanges have it. Most of the DSPs have it. And now some of the yield optimisers are offering it as part of their service to publishers and ad networks. Janneke Niessen, Co-founder and COO of Improve Digital, took some time this week to speak to FarneyMedia about their Pubmatic-powered platform's RTB capabilities, and how it can help European publishers:

Can you explain how Real Time Bidding works on your platform?

The most important point is that our online publishers do not have to do much for Real Time Bidding (RTB) to work. There is no integration on their side; they just need to be working with us.

For our ad network and demand partners, once they are integrated with us, RTB allows them to bid in real-time for each impression. It starts with our technology receiving an ad impression request from the user’s browser at which point we make real-time API calls to matching ad networks and demand partners with transparent details about the impression. The ad network or demand partner then uses their unique parameters to determine value and sends a bid in real-time back to us. We then selects the winning bid and the ad is served.

Since initially releasing our RTB in early 2009, we’re already on version 3.0, which includes greater targeting capabilities such as language, screen resolution, and relative position of the ads within a page. It also includes improved contextual analysis at page level to provide the most appropriate ad based on the page content. This ensures a good user experience and better performing campaigns.

What in your view are the benefits for the publisher?

The publisher benefits are significant and immediate. Our data shows that publishers that are participating in RTB campaigns experience noticeable revenue lift because of the increased value of their inventory on top of the average lift of between 50 and 300% that we already see with publishers using our technology. We’ve been carefully monitoring this since we launched our RTB capability in early 2009.

Another big benefit is a better user experience because the users get more relevant ads. Publishers also get transparency on the ad network that is serving the ad (as they would when using our technology without RTB), so should an ad appear that goes against the publisher’s creative policy, they would know instantly exactly where it came from. This makes ad networks less likely to serve unwanted creative and reduces discrepancies. For more information on quality control we also have a white paper available (http://www.improvedigital.com/whitepaper-on-creative-quality-control)

Additionally, the long-term benefits for publishers include being exposed to more advertisers (via our ad network and demand partners) as more and more of them are utilising RTB for campaigns. We currently have over 80 buyers taking advantage of RTB.

How would you describe RTB to a skeptical publisher who can’t see the value of the real-time trade?

We would point to the benefits mentioned in the previous question, but the fact is we haven’t really come across that scenario. Unless a publisher is able to sell through their inventory via a direct sales team, there isn’t much risk vs. opportunity. RTB improves sell-through rates, there is zero integration for the publisher, and the same creative controls for brand protection still exist.

And again, as the first ad revenue optimization company to offer RTB, we have already achieved plenty of positive and proven results for publishers.

Do you think RTB will result in better CPM rates for publishers?

The technology already enables a great uplift in eCPM, giving publishers a fair market price for their inventory through the real time optimisation. RTB increases the positive eCPM rates, especially for premium publishers with an attractive audience. We have seen that our ad network partners are willing to pay a premium for better performing campaigns which come as a result of getting them in front of the right audience. Our ad network and demand partners have seen campaign ROI improve by 100%, and they are buying more and more impressions at premium rates for these better performing campaigns. As more ad networks and demand partners utilise RTB, it will continue to improve ad pricing for publishers.

Can publishers opt-out of the RTB process if they wish?

Absolutely, publishers always decide what is running on their inventory and how. However, that isn’t a trend we are seeing. We’re here to help premium publishers, and they are under no obligation to participate in campaigns, if they don't feel it is right for them at that moment.

What are the technical criteria for ad networks and exchanges to participate in real-time trading on your platform? Do they have to have certain ad server technology? Do they need to be co-located in the same geographical area to prevent long latency in ad delivery?

Maintaining a good user experience for our premium publishers is of critical importance to us and that includes fast load times for ads. We have servers in multiple locations, which gives us a geographical advantage, but more importantly, we have a minimum speed time that our partners must maintain in order to leverage our RTB. Before a partner goes 'live' with us, we undertake several test phases that gradually increase the scale to ensure that latency is not a problem

What are the technical difficulties for any platform (yield optimiser or exchange) providing RTB to buyers and sellers?

For sellers, meaning publishers, being a part of an RTB isn’t difficult as Improve Digital and its ad network and demand partners carry out all the technical processes.

For our ad network and demand partners, it is less about difficulty than it is about ensuring that our publisher partners have a good experience, and that means our partners need to maintain our minimum technical standards. However, we have just released RTB 3.0 (the third version of our RTB platform), which includes a number of upgrades and makes it even easier for our partners to integrate with us.

Are many European ad networks using RTB on your platforms?

We are currently seeing interest from European ad networks and we are looking to launch the first ad networks on RTB in Q1 2010. Some US-based ad networks already use the RTB.

How long does the average decision-making process take for an impression-level buy on your platform?

It is instantaneous.

Are publishers and ad networks in Europe really ready for RTB?

Currently it is definitely creating a buzz and some ad networks have already shown real interest in it. Like many digital marketing techniques, there will always be a handful of innovators. In this sector that means those that are ready for RTB, and who will lead the way for the others to follow. We believe the growth in RTB will be explosive throughout 2010, and we have ensured that we are ready with version 3.0 version of our RTB technology!