As publishers attempt to make online advertising a profitable and engaging business model, real time bidding on Web inventory by prospective clients is becoming more prevalent. Conde Nast launched a private Web ad exchange with AdMeld for select clients in late 2011, and now smaller publishers are getting in the game.
Tech company Casale Media designed real time bidding (RTB) platform CasaleX after several clients expressed interest in the burgeoning model. Andrew Casale, VP of strategy, says the draw of real time bidding lies in publisher control. “There are two extreme models of real time bidding for publishers,” says Casale. “The first is when a publisher has all their inventory in a private exchange, so a human interaction is necessary for a sale to take place.” Another option is for publishers to place online space not sold during more traditional sales efforts on the virtual block.
Casale client GateHouse Media, a local newspaper network, sells the majority of its ad space through the RTB platform. Casale says that valuable space, like homepages, are landing top dollar through the live bidding process.
Through the RTB system, Casale vets agencies and clients that are able to bid on publisher inventory. The system also allows inappropriate campaign content groups to be blocked, as well as real-time reporting of available inventory through the user interface (pictured).
In another plus for publishers, the real-time bidding atmosphere motivates marketplace competition. “It’s a new model that’s really changing the market,” says Casale. “It’s interesting to see how it’s unfolding.”
For its own monetization, Casale keeps a small portion of each advertising transaction.