Before the digital age, ad space on television or
radio was done in a very non transparent process where full understanding of
the types and quantity of viewers you were purchasing. High barriers to entry
meant that access to traditional mediums for advertising were for the big
players only. Moreover, planning for advertisements happened months in advance and
any last minute purchases cost a massive premium. The internet changed this. With
big data, marketers can narrow the scope of their campaigns to a defined
audience and also interact with the audience to ensure that the message was
transmitted. Any small business can purchase ads on google or Facebook alongside
the big players such as Coke or Pepsi. Moreover, given the additional big data
available, advertisers can quickly test shift their strategies and fine tune
them on an ongoing bases to ensure the desired results are achieved.
Programmatic buying enables advertisers to use
complex algorithms to purchase ads based on prespecified parameters. Marketing
is no longer a touch feely topic. There is a high degree of data and statistics
involved. Real time bidding is to digital advertising what high-frequency
trading is to Wall Street. Computerized, algorithm-driven trading allows for
quick buying of ad impressions according to pre-set parameters. Twitters
purchase of MoPub, an ad exchange with a real-time bidding platform, reinforces
the market movement towards such platforms. It will be interesting to observe
how Twitter continues to monetize its platform using advertisements powered by
the MoPub technology.
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