Programmatic advertising has transformed the digital landscape, enabling marketers to reach their target audiences with greater efficiency and precision. At the heart of programmatic advertising lies the OpenRTB (Open Real-Time Bidding) protocol. This standardized communication system facilitates real-time auctions, where advertisers decide whether to bid on an ad impression and at what price. If you're unfamiliar with how these bid requests work, this article will provide you with an in-depth understanding of the framework behind programmatic advertising in the world of streaming.
The Role of OpenRTB in Programmatic Advertising
OpenRTB serves as the common language used by different systems in the programmatic supply chain. It allows media owners, marketers, and other players like SSPs (Supply-Side Platforms) and DSPs (Demand-Side Platforms) to exchange data during ad auctions. This protocol plays a crucial role in creating a more transparent and efficient bidding process, ensuring that all participants in the supply chain have the necessary information to make informed decisions.
How It Works
The process begins when an ad opportunity arises, and the SSP sends a bid request to the DSPs. These DSPs analyze the data contained within the bid request and determine whether to place a bid and at what price. This entire process happens in milliseconds, allowing marketers to reach large audiences with highly relevant ads at the right price.
Key elements within a bid request include attributes like ad size, content type, audience data, and historical performance, all of which help the DSP decide whether or not to participate in the auction. In streaming environments, bid requests include even more specific data points, ensuring that ads are relevant to the content being consumed.
Key Objects in a Bid Request
Bid requests in OpenRTB are formatted in JSON (JavaScript Object Notation), which is easy to read and interpret. The bid request contains several important objects that describe different aspects of the ad opportunity. Let's break down these key components:
The Impression Object
The Impression Object is the core component of a bid request. It describes the specific ad opportunity available, including:
- Banner Size: The dimensions for display ads.
- Video Duration: The length of video ads.
- Pod Duration: The duration for ad breaks with multiple video ads.
- Bid Floor: The minimum price required to participate in the auction.
This object ensures that DSPs know exactly what kind of ad opportunity they are bidding on.
The Deal Object
The Deal Object provides details about any pre-negotiated agreements between buyers and sellers. This could involve fixed prices or access to premium inventory. These details help DSPs determine whether the opportunity aligns with their campaign objectives.
The Site and App Objects
The Site Object is used when ad opportunities are available on websites, while the App Object is used for mobile or streaming app opportunities. Both objects contain information about the media owner and the property where the ad will appear. This might include:
- Site name and domain for websites.
- App name for mobile and streaming apps.
The Content Object
The Content Object contains highly specific data about the content where the ad will appear. In streaming environments, this object can include information such as:
- Genre
- Livestream status
- Content rating
- Channel or network
- Show-level details like series name, season number, and episode title
By including this level of detail, DSPs can place more contextually relevant ads that align with the content being viewed.
The Device Object
The Device Object contains information about the device on which the ad will be displayed. This helps DSPs tailor creative formats to different screens and target specific audiences. Key attributes include:
- Device type (smartphone, tablet, desktop, etc.)
- Operating system
- Geography and IP address
- In-app environments: Advertising Identifier (IFA)
The User Object
The User Object contains anonymized information about the consumer who is viewing the ad opportunity. This object allows DSPs to target specific audiences while respecting privacy. If available, it may also include consent information for the processing of personal data.
The SupplyChain Object
The SupplyChain Object (schain) provides transparency into the transaction path from the original media owner to the final buyer. This object outlines all the parties involved in the transaction, ensuring full visibility into the supply chain.
Why OpenRTB is Essential for Streaming Ad Auctions
Streaming advertising is an increasingly important channel in the digital landscape. With the growing popularity of platforms like Netflix, YouTube, and Twitch, streaming has become a major avenue for advertisers to reach their audiences. OpenRTB has evolved to support these emerging platforms, allowing for more precise targeting and a transparent auction process.
For example, the OpenRTB 2.6 release introduced new features designed specifically to support streaming TV, improving the accuracy and effectiveness of ads displayed on these platforms. As streaming becomes a larger part of the advertising ecosystem, it is essential that all parties in the supply chain adhere to the latest OpenRTB guidelines to ensure consistent communication and accurate representation of inventory.
Key Performance Indicators (KPIs) in Programmatic Advertising
To evaluate the success of programmatic advertising campaigns, it's important to track certain KPIs. Some of the most valuable KPIs for programmatic campaigns include:
- Click-Through Rate (CTR): The percentage of people who click on an ad after viewing it. An ideal CTR for display ads is typically between 0.05% and 0.1%.
- Conversion Rate: The percentage of users who take a desired action after interacting with the ad. A good conversion rate for video ads is often around 1% to 2%.
- Cost Per Thousand Impressions (CPM): The cost of 1,000 impressions. This is an important metric for advertisers to track the cost-efficiency of their campaigns.
- Return on Ad Spend (ROAS): Measures the revenue generated for every dollar spent on advertising. A typical benchmark for ROAS is 4:1 (four dollars in revenue for every dollar spent).
Conclusion
The OpenRTB protocol is at the heart of modern programmatic advertising, driving real-time auctions and ensuring transparency across the supply chain. By understanding the key components of a bid request—such as the impression object, deal object, and device object—advertisers can make more informed decisions and reach their target audiences more effectively. As streaming continues to dominate the digital advertising landscape, keeping up with the latest OpenRTB updates is essential for success in the programmatic ecosystem.