By Scott Meiklejohn
With digital marketing continuing to grow year on year, it is important to facilitate the ever growing needs of publishers, agencies and data providers to adequately deliver a seamless user experience when it comes to delivering marketing solutions. As the scale and size of networks continue to grow each year, the traffic and security needed across networks and those of users is more considered.
For financial year ‘17/18 total digital advertising spend ending June reached $8.5 billion. A continued shift in advertising spend from desktop to mobile devices, with mobile revenue growing 39% year on year. This shift is in line with recent data from Nielsen that reported that in July 2018 more than 1 million more Australians consumed content online via their smartphone compared with one year earlier. With digital consumption showing so much growth it is important to be able to handle the challenges underpinning online marketing within the advertising industry.
One of the biggest players in the digital ecosystem has been the rise and power of programmatic advertising in the last decade. By 2020 Zenith’s Programmatic marketing forecasts predicts that programmatic spend will grow by 67 percent between 2018 and 2020 and will represent 27 percent of all spend digitally in the Australian digital media landscape. With programmatic representing such large share of the market, the importance of having the infrastructure in place to benefit the real-time bidding process becomes a key part in the programmatic advertising funnel.
In order to increase your share in this fast growing market, to be competitive, you need to increase your programmatic RTB speed. Real-time bidding transacts large volumes of bids between networks and providers each second, being able to the decrease the time it takes to process this data each millisecond can be of greater benefit for successful outcomes and opportunities for clients.
Having providers of Data centres that help to facilitate and speed up RTB processes is vital to the future of digital advertising. Being capable to interconnect publishers, networks, ad exchanges, DSPs and sell side platforms is key to improved performance. With a company like Equinix consolidating these parameters and aiding in this field you can bypass the internet and allow these components to connect directly and complete all these processes without the latency you would find on public internet. These direct connections allow for less restrictions and greater reliability when it comes to automated real time bidding transactions.
What does this mean for advertisers? This means advertisers can have the access to more inventory and data when running digital campaigns. With so much data available to advertisers and its ever present growth, being able to reach more potential high-value users and bidding on more relevant impressions is now more important than ever. With state of the art data centres and interconnection services allowing greater reach and scalability, the ability to drive better results for clients is now a reality.
The next time you consider these for your digital campaigns, perhaps one the things you may want to ask is exactly how the exchange process has been built with your provider. Whilst you always want to know what is on offer from a product perspective, sometimes knowing the mechanics/backbone of the operation can be just as if not equally influential in deciding who you may go with.