Tag Archives: Real-Time Bidding (RTB)

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By 2018 Latin America Will Have More Than 400 Million Internet Users

Recently, eMarketer—a research firm specialized in online data for markets around the world—published research about the amount of Internet users in Latin America. According to eMarketer, by the end of 2014 Latin America will have more than 330 million Internet users. Nearly 108 million of these Internet users will be in Brazil, 64 million in Mexico and 27 million in Argentina, with nearly 132 million in the rest of Latin America.

The firm projects that by 2018 there will be nearly 414 million Internet users in Latin America, an overall 25% increase in 4 years. The effects of this growth are visible in several areas, such as e-commerce:

  • Consulting firm Prince and Cooke projects a 40% increase in e-commerce in Argentina and total online sales of $4.2 million in 2014
  • The Brazilian Association of E-Commerce predicts that e-commerce will go up by 27% in Brazil in 2014 to reach a total of $17 billion in sales
  • According to the Santiago Chamber of Commerce, e-commerce sales in Chile went up by 25% in 2013 and will go up another 20% in 2014 to reach $2 billion
  • In Colombia e-commerce sales went up by 40% in 2013 to total $2.5 billion and according to the Latin American Institute of E-Commerce, e-commerce sales in Colombia will go up by another 45% in 2014
  • The Mexican Internet Association indicates that e-commerce sales in Mexico went up by nearly 42% in 2013 to reach more than $9 billion
  • According to the Latin American Institute of E-Commerce, e-commerce sales in Peru totaled $800 million in 2013 and should go up by another 20% in 2014

More Usage
Beyond online transactions, recent research also indicates that Latin American are going online with more frequency and spending more time online than ever:

Running the Numbers
All of this Internet use, whether it’s to surf, update social media statuses or make online purchases, increases the amount of available data for Latin American Internet users. Companies like Navegg—a partner of MediaDesk, a DSP (demand side platform) that is Latin America’s leading programmatic buying platform—are gathering this data. For advertisers and agencies, this data is crucial. It allows for the creation of complete profiles of Latin American Internet users that include their preferences, interests and purchase intents.

Currently MediaDesk DSP has more than 110 million Internet user profiles for Latin America. Once they combine this data with MediaDesk’s user-friendly system, today more than ever firms can reach Latin America’s 330 million Internet users with even more precisely targeted online ad campaigns.

To find out how to leverage programmatic buying with MediaDesk, the leading programmatic buying platform in Latin America, please contact us: sales@mediade.sk.

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MediaDesk Launches Programmatic Buying by Audience for Latin America

Buying audiences is at the heart of programmatic buying. Typically we buy ad impressions on sites whose audience profiles match our target audience. But with programmatic, you can use third party data to select the target audience you want to reach and the buy is made to reach that audience on the sites they visit.

Up to now, buying by audience has not been widely available in Latin America. But MediaDesk, Latin America’s premier programmatic buying platform, is debuting a new feature that allows you to buy online display advertising by audience. This is due to a partnership with Navegg, one of Latin America’s top online market research firms. MediaDesk has integrated Navegg’s deep data stores for Latin American consumers into its user-friendly system. For users, this means that you can define your target audience by demographic, psychographic, interests and purchase intent. As a result, your online ad campaigns have much greater potential for reaching clients.

How It Works
MediaDesk is designed for media, advertising and interactive agencies, basically any type of agency that handles online media buying for their clients. These agencies have no fixed fee for using MediaDesk and no minimum buy. Upon registering, they can then implement campaigns and purchase ad impressions using a specially designed RTB (real time bidding) system that is part of MediaDesk. And of course, now these agencies can also target more precisely by buying the audience that their client wishes to reach, rather than buying by media.

The Next Step
If you want to explore MediaDesk’s new feature or try out the platform in general, please contact us to arrange a demo: sales@mediade.sk

 

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Programmatic Buying: The Future of Digital Media Campaigns

Up to now, digital media buying has mostly been dominated by a custom approach in which you work to match up relevant ads with relevant sites to deliver relevant segments.

But what if you could spend your budget on trying to reach the customers you want to reach, not just a rough percentage of them based on your match-up?

What if you could use a system that automatically (and continually) optimizes your campaigns?

And what if you could reach many more sites than with a manual buy, aggregate highly responsive customer segments to reach a mass scale and measure clicks, shifts and conversions with your campaigns in real time?

These are all the advantages of programmatic buying, a new, paradigm-shifting way of buying digital ad space and implementing online ad campaigns.

What It Is
Programmatic buying basically involves using an automated platform to buy ad impressions. You enter in your customer data, budget and campaign objectives. The programmatic buying platform does the media buy for you based on an auction for available impressions, taking into account the data you entered. The platform also matches up the ads each user sees with the available customer data. The idea is that each Internet user will see an ad that fits their specific needs and interests. For buyers, this means that they only pay to reach the clients they want to reach.

How It Works
Programmatic buying is driven by data. For best results, buyers need to enter in as much data as they can about their target audience. Usually, brands have a wealth of data about their customers that they can provide. In addition, through the programmatic buying platform they choose to use, they can also purchase more data provided by third parties on a CPM basis. Third-party data types can be demographic (e.g. gender, age, income, etc.) psychographic (mindset, interests) and behavioral (recent searches, credit card usage, etc.) The programmatic buying platform takes these data points and uses them to run the campaign. The goal is not just to match the right ad with the customer, but also the right context, especially the context that leads to the campaign objective being fulfilled.
As happens with search marketing, there’s bidding. You bid for the impressions you want and the programmatic platform handles the buy with an auction system that decides who gets what in milliseconds—this is known as Real-Time Bidding (RTB). There are two main approaches to buying media programmatically. With Price-Based Trading, you try to buy the impressions for as low a price as you can and benefit your campaign by reducing the cost as much as possible. You can target and optimize with this approach, which in practice tends to be manual and not automated. The other approach with programmatic buying is value-based. With the value-based approach, you take advantage of the system’s ability to learn from customer responses to ads. The system then automatically gives a value to each ad impression so you know which impressions deliver the goal response you want from your customers—and which ones don’t.

How It Plays Out
Let’s say that you purchase your impressions and have the objective of getting women 35-44 to click on a banner for a jewelry product. And Elena, an Internet user that fits your target demographic, visits a smartphone Web site on a Monday and then a soccer blog on a Tuesday. Because of the data the programmatic buying system has about your campaign and your target, when she visits the soccer blog, she sees an ad for jewelry. This fits her behavior and is in the right context to reach her, specifically. Now contrast this with a custom buy for the soccer blog. Given that it’s a soccer blog, it’s likely that a custom buy would result in Elena seeing an ad for an energy drink or a men’s fitness product. So with programmatic buying, you’re not matching product category to publisher category, you’re matching product to customer profile and behavior, thus increasing the probability of response. And this increased probability isn’t a random supposition, it’s based on what has actually happened based on measurement of previous behavior by the Internet users.

What’s Next
According to eMarketer, spending on digital display ads via programmatic buying will grow by 73% in 2013, with double-digit increases every year through 2017. Given this trend and the clear value of this approach in terms of delivering greater ROI, US Media Consulting has created Media Desk, one of the first-ever programmatic buying platforms for Brazil and Latin America. A robust technology platform and user-friendly interface in 3 languages make Media Desk the ideal solution for any digital media planner who wants to deliver the power of programmatic buying for their clients.

To find out more, please visit mediade.sk or write directly to sales@mediade.sk to obtain a free demonstration of this innovative platform.

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