Real time marketing on exchanges
Marketing and advertising have a vital role in delivering the right message to the right audience and in real-time. Initially, e-commerce had the vision to end mass advertising, which has exploded in the television era. Most of the ads displayed on visitor sites are irrelevant to their interest and this is due to fears privacy advocates. For example, yahoo is the largest advertiser, but its ad does not reflect customers’ interest. The rate for the banner of advertising has decreased to 0.03% and the price fall display. This has slightly reduced due to poor performance. In 2013 about 20% of online user fined display ads are relevant to their interest in websites. Companies like Yahoo and other publishing companies do not know much about customers and generalize their ads considering their gender, age, and prior purchase. This publisher often builds a customer profile, imprecise and cannot predict how the user could respond to specific ads. Therefore the displays ad is far off from what the user was interested at that particular moment. Though the company knows everything about the user, their advertising networks could not sell it to a potential advertiser.
It is paramount to note that web based advertising is ignorant to identify user interest. Search engine advertising responds to some of the searches the user has entered and it focus accurately on user intension. Behavioral targeting and tracking technique have emerged to solve issues in display advertisers. This mechanism tracks online behavior and improves the situation by expanding the scope for personal information and enable advertiser to tune their advertising and create a better digital image for individual users. The process involves real individuals and but no profile is created and websites such as web bugs and cookies can track software in visitor computers.
Research indicates that about 50 top websites in the United States have installed almost 3180 tracking files on computers visited every day. Two third of tracking files are installed by many companies where yahoo and Microsoft are the leading companies. The majority of these tracking files are cookies and beacon and any website does not install them, but they have a commercial arrangement with site visitors are visiting.
When the user visits the website, a tracking cookie is assigned to the user and beacon is installed to track what people view on site. Often, beacon record users comment on favorite movies, crossword puzzles, and automobiles. When users happen to visit a website that has installed tracking film, user behavior is recognized and observed. Eventually, the information noted and is added to the original cookie and it is sent company server by use of installed beacon.
Recently display advertiser has developed the capability to display banner ads based on individual behaviors and in few milliseconds. Owners of cookies and beacon with large companies are generating data where advertiser manages to purchase personal data. Today, Facebook and Yahoo provide real time ad exchange, which allows the advertiser to develop a space in milliseconds by searching web addresses where the page appears and the data is purchased from the exchange. In most cases, publishers sell inventory to direct advertisers and avoid middlemen such as Google ad exchange.
Ad exchange deploys real-time bidding to help publishers to sell ad space in the site in real-time. Seller of ad space must connect to the same ad exchange with an advertiser who buys for the complete transaction. Largest ad exchanges such as Yahoo Right Media turn to correct more personal information on the internet and have efficient consumer data analytic and data capability to use data. The large publisher is creating their ad exchange and this reduces their expenses. In 2012 Facebook launched ad exchange and this was a way to attract a broad audience. It has a platform that sells the audience to the advertiser via an automated system that enables the buyer to get space for the audience. Facebook allows a small ad on the right side of the visitor page. Facebook identifies what the user has searched by placing a cookie on the user’s browser and uses the search engine to record searches. Facebook does not allow advertisers to access user Facebook information such as the content of the post and cannot sell the user’s profile. Therefore advertisers can only get access to Facebook pages through Facebook exchange or other service ads owned by Facebook.
In 2013 US advertisers spend more than 3.3 billion us dollars on real time bidding and the value has increased compared to 2011. Some of the display ads are arranged in an automated buying system. Ad exchange collaborates with the web advertising environment and they allow advertisers to decide where to place their ad. The process is different from the traditional placement that puts an ad in the month before being displayed. Regardless of the current placement process, ad exchange raises some issues. Some websites have no real audience and don’t have a user who visits and still receives the payment. Also, the advertiser is not assured that ads were delivered to their targeted users. However, some companies are now using an appropriate tool to prove the target audience receiving their ad.