Too Much Data Can Reduce Marketing Effectiveness [Survey]

One contribution to the data increase that marketers come across is the rise of header bidding, which allows publishers to simultaneously offer ad inventory to all of their supply-side platforms (SSPs) before making calls to their ad servers. Prior to header bidding, programmatic advertisers relied on a tactic called waterfalling where ad impressions were sequentially passed from one SSP to another.

Now that header bidding allows ad requests to be processed simultaneously instead of sequentially, there has been a significant increase in the number of bids that marketers’ demand-side platforms (DSPs) process for each ad impression. For example, about three years ago, the DSP The Trade Desk processed about 1 million queries per second and now it processes about 9 million queries per second.

Marketers and their DSPs have responded to this trend by using supply path optimization (SPO), which helps marketers create more direct routes to the publishers they buy inventory from. This is accomplished through utilizing algorithms that selectively bid on impressions that the marketer has the best chance of winning in programmatic auctions. This helps DSPs reduce their infrastructure costs by lowering the burden on their servers, and it reduces the probability of bidding on duplicative inventory.

Data exhaust isn’t necessarily a big problem for marketers. As long as marketers approach their campaigns with a clear purpose and focus on the correct metrics, they should be able to establish a reliable framework for data utilization.

There are a lot of available data sources for brands and their representatives, and they should be focused on the data that they believe can create the biggest impact, which means they’ll always think they’re throwing away or missing some other data sources.

How are you using data to extract valuable insights and leverage it for future campaigns?
Contact Lori at 877.447.0134, x111 or lberson@BersonDeanStevens.com to learn more.