Maciek Mikołajczak is currently the Business Development Director CEE at RTB House, a technology agency with worldwide operations, and the creator of technology for buying inventory and displaying adverts in the real time bidding model. Prior to RTB House, Mikołajczak was the Business Development Director at Gemius, where he ran the company’s expansion in Europe. The Makegood recently spoke with Mikołajczak about the analysis of an advertising campaign.
The Makegood: Analysis of an advertising campaign showed RTB House that Russia, Romania, and the Czech Republic have the highest number of ads clicked, with large ad formats receiving the highest click-through rates. Why do you believe that these ads in these countries are getting the best results?
Markets in Central and Eastern Europe, like Russia, Romania and Czech Republic, are less saturated with advanced online advertising technologies in general. This also holds true for ads based on personalized retargeting – a model that displays personalized ads to individual users based on their online activity and RTB – a technology that enables the buying and selling of individual page views in real time.
Users are more eager to click these ads, as they are still a relatively new form of advertising online. In addition, they feel more incentive to actually click through when they are shown exactly the same products that they browsed at an earlier time.
In terms of ad formats, our analysis is in line with other research and data that shows large ad formats are generally more effective. The reasoning behind larger ad sizes being more successful is simple: they are larger and more optimally placed on a web page. Large format ads are often put on the most visible and accessible parts of a website.
The Makegood: How did the combination of ads served via real time bidding and personalization of advertisements contribute to the success in these countries?
The full potential of personalization is only realized in conjunction with a real-time bidding environment. In other words, the combination of direct access to a particular user and the ability to serve him/her a personalized advertising message in real-time is very effective.
The Makegood: In the United States, are advertisements as personalized? Do companies use RTB as effectively in the U.S. as they do abroad?
Campaigns based on RTB are quite similar across the internet. The scope of data used is the same, access to technology is similar, and e-commerce businesses are also not so different. The only limitation for both sides of the Atlantic Ocean can be server infrastructure, as you need to be really fast to respond to a “bid” quickly enough.
The Makegood: Would you say that online display is still an integral part of an advertising campaign given these results?
In a way, the RTB ecosystem is still a part of display advertising. After all, it all comes down to an ad being displayed online. The key differences are that an individual person receiving the ad becomes important, and methods of payment can differ. ‘Traditional’ display will always be important, at least until everything becomes “performance based.”
The Makegood: What do you see for the future of real time bidding? Do you believe that RTB House will take this as a sign that further expansion globally will be beneficial?
The capabilities of RTB are almost unlimited. Never before have new technologies contributed so effectively to the success of advertisers and publishers in the online realm. Moreover, we are witnessing new products based on RTB technology entering the industry. For instance, we have a product dedicated to manufacturers (TANDEM Effect powered by RTB House). On the other hand, we have more and more advertising space in RTB environments and significantly advanced ad formats. The data scope taken into consideration by the algorithms is also getting wider. Even the value of an impression can be evaluated basing on changing conditions (e.g. the weather). All signs suggest that markets are ripe for taking full advantage of personalized retargeting and RTB solutions.
The Makegood: Thank you, Maciek