BSkyB, Britains biggest pay-TV outfit, has used the technology to reach wealthier viewers who might be more interested in a new channel devoted to well-crafted American dramas. It has also taken aim at people who show an interest in 3-D television. And it has cut down on waste from trying to sell subscriptions to people who already have them. Matthew Turner, Skys head of digital marketing, expects half the firms online budget to go on real-time bidding within two or three years.
King Content v King Data
In the short term, what is good for advertisers is also good for ad sellers. Reducing waste raises prices. Laurent Cordier of Google says that retargeting can raise click-through rates five- or tenfold. Google now sells many ads on its Doubleclick ad exchange by means of real-time bidding, and is introducing the technology to YouTube, its video website. In 2010 display advertising actually gained market share in America, according to the Interactive Advertising Bureau. Search fell slightly.
But the growth of real-time bidding may prove highly disruptive. An auction system allows everyone to discover the real value of online ads. It also provides a wealth of data to advertisers about the behaviour of their target audiences. These days some media firms can charge relatively high rates for online ads on the grounds that their websites are frequented by the young or the affluent. Increasingly, advertisers are learning how to reach the same people on other websites, for less money.
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2016-02-26
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