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Advantages of using the Trading Desk technology for promotion of products and services in digital media

The use of the Trading Desk technology is an effective model of advertising in digital media.This technology offers a number of advantages such as better targeting of audience, a deep analysis of customer’s characteristics, a creative approach in creation of digital advertising, an effective use of multi-faceted knowledge of a consumer, cost reduction of advertising campaigns, and increase of the  profitability of investment in promotion.


Quality targeting: The main concept of the RTB ecosystem is an effective use of audience data, which allows an advertiser to advertise only to the audience that fits its criteria. These criteria might include the interests of consumers, social demographics data, online purchase history as well as regular visits to the same web sites. The classical approach of advertising allows implementing advertising campaigns, using a very limited set of criteria to determine the target audience. Usually, it is limited to such characteristics as age, gender, and a social status of the consumer. Thus, a probability to reach the desired target audience is low if advertisers choose a website/advertising channel by using the classical approach.


In contrast, the use of the RTB ecosystem for advertising campaigns allows identifying the target audience more accurately, taking into account the entire set of characteristics of potential customers. To launch advertising campaigns, the Trading Desk Agency creates a list of attributes that describes desired behaviors of the target audience, and uses the Trading Desk technology to participate in an ad auction. The RTB system allows purchasing the inventory, which will be seen by necessary audience. Also, the RTB system allows optimizing advertising campaigns in real-time. This approach reduces the likelihood of purchasing of improper and inefficient equipment.


A deep analysis of the characteristics of a potential client: The Trading Desk technology enables an in-depth analysis of potential customers’ data and allows understanding the characteristics of a consumer with certain behaviors in digital media. Thus, the TD technology allows displaying advertising to the audience whose characteristics are similar to the audience with certain behaviors. This approach is called the Look-alike targeting. The Look-alike targeting will significantly expand the audience which is limited by the capacities of the web sites in a classical advertising campaign.


Creative work in the development of advertising campaigns: The use of the Trading Desk technology opens up entirely new possibilities for personalization of advertising messages for each potential customer. The Trading Desk technology allows creating personalized promotional messages knowing key characteristics of the audience such as gender, age, geography, interests, needs, and history of interaction with the brand of an advertiser. This technology allows analyzing and structuring different data sets. For example, if a client previously purchased brand products, what products the client was interested in previous visits to the web site, whether the client is in brand’s community, and whether the client signed up for a newsletter. By using this approach, agencies have the opportunity to quickly create promotional materials that correspond with the needs and desires of a potential client. For example, depending on gender and age, customers are offered advertising messages, which include a variety of colors and graphical solutions. Furthermore, this technology allows automatic offerings of special promotions for regular customers. Such approach enhances the effectiveness of the advertising campaign and provides advertisers with possibilities in attracting new clients.


Integration with multiple data sources: Technically, Trading Desk can be integrated with a number of online and offline communication platforms such as communities or groups in social networks, frequently visited websites, promotional projects, email and SMS. This possibility allows using an extended consumer database in advertising campaigns. As a result, advertising campaigns using the Trading Desk technology show greater efficiency in comparison with the classical approach of advertising.


Reducing the cost of advertising campaigns: There are a lot of intermediaries between an advertiser and an advertising platform in the market of classical media advertising. This issue was discussed in details in the previous blog. Thus, the use of the Trading Desk technology allows purchasing inventory by bypassing intermediaries and reducing the total cost of purchase.


Increasing the profitability of investing in sales promotion: The use of the Trading Desk technology allows buying inventory at a lower price by advertising only to those potential customers who are really interested in buying the advertised product or service. As a result, this inventory, purchased through the Trading Desk technology, is able to provide a higher return on investments in product promotion.


Thus, the main purpose of the Trading Desk technology is to help advertisers improve the efficiency of investments in promotion of goods and services and get a better return on digital advertising using a new model of purchasing.


In the next blog of the «Trading Desk insight» cycle, we shall talk about the role of Trading Desk in the RTB ecosystem.

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