

The rise of an electronic marketplace for online ads is reshaping media business - e15ctr0n
http://www.economist.com/news/special-report/21615872-rise-electronic-marketplace-online-ads-reshaping-media-business-buy

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arbuge
>>JONA MICI, A 27-year-old media trader, sits in front of her screen at Varick
Media Management, a real-time advertising company in New York, and explains
how she uses superfast algorithms to buy 20m-30m advertising “impressions” a
day. Today one of her clients, an American bank, has asked her to find new
customers. At first she guides the algorithm to buy as many impressions as
possible near bank branches. Then she narrows her targets, choosing criteria
that produce a better hit rate. For example, she finds that tablet users sign
up more often than iPhone users, and afternoon seems to be a better time than
morning.

It sounds so hand-wavy. I'm guessing she (as well as the entire food chain
from her keyboard onwards - the DSPs to the SSPs and the publisher websites)
would be sleeping under a bridge if she was paid for actual conversions,
rather than for just filling a purchase order of impressions with whatever she
can get.

Sometimes I wish I could get clients with loose wallets like this...

...and what on earth does getting impressions "near bank branches" mean?

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laglad
I agree that media trading is quite hand-wavy - similar to trading stocks.

That said, it's quite possible that the article mistook 'hit rate' for
'conversion rate'. That would explain why snooping for imps "near bank
branches" would make sense. Those customers may be primed for the ad/can
convert sooner.

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petercooper
Programmatic ad sales is established and growing rapidly and should be of
bigger concern to people than the "native advertising" diversion people are
misunderstanding lately.

Programmatic ad sales relies on collecting incredible amounts of behavioral
data and letting advertisers target upon numerous criteria. Trying to get
someone to sign up for your credit card? Perhaps try advertising to a 20-28
year old male who's hit up both a few debt forums and a few gadget review
sites lately? It's all pretty amazing from a scientific POV.

~~~
pessimizer
What do you think people are misunderstanding about "native advertising"?
Seems like a pretty simple concept.

