Programmatic Advertising Effectively Identifies Your Audience — Here's How


More than 80 percent of all digital display ads in the U.S. will be purchased this year through automated channels, according to eMarketer. One area that’s exploding with ad spending in this direction is on programmatic advertising.

Programmatic ads are automated using audience data and technology to achieve the right marketing to the right person, at the right time, in a relevant context. Marketers are expected to spend over $46 billion in 2018 on digital display ads and video display ads on the web, mobile phones, and tablets, across hundreds of sites.

When conceived and programmed correctly, programmatic advertising ensures that key target audiences are being properly identified, and are being shown helpful, informative, relevant and timely content. This can have a meaningful impact on a brand that’s doing programmatic right. Done poorly, and it can have the reverse effect.

Benefits of Programmatic

Programmatic ads are powerful in helping SMB advertisers with their branding efforts. Having a focused ad targeting strategy can help small and medium-sized businesses in keeping their budgets in line and can be very effective in engagement and conversions down the line with target audiences.

Another benefit to programmatic ads is the opportunity for marketers to develop real-time audience insights that can be immediately impactful. Having these insights can help bolster future campaigns, increase optimizations and the develop future strategies.

Customize your Message

Programmatic makes it easier for advertisers to find desired target audiences across the internet, wherever those audiences are located. For example, a consumer may have visited a local car dealership online, and location data may show a pattern of other dealership visits. Programmatic will assume the consumer is in the market for a new or used car and may set up ad opportunities for that purpose. This targeting is managed anonymously, without marketers learning any identity information about the potential car buyer.

Identifying Audiences

Programmatic advertising technology works best for identifying niche audiences. For example, a surfing equipment and supplies website found that programmatic advertising showed that its top visitors were young adult males (aged 20-35) who live in the North Pacific region, read the site during worktime lunch, and have been regular visitors. Armed with this data, an advertiser using programmatic technology would have definite ideas on who and where are these persons, what time of day they might be most receptive to relevant ads, and what type of content to show in the ads.

Mix up the approaches

Programmatic is best known for targeting audiences and driving conversions. But advertisers who are developing their branding can get experimental by trying different approaches. 

Advertisers could beta test a top-down approach by developing programmatic ads for the most engaged online users, perhaps those at the very top of online sites. They could also try to target their efforts to the most popular competitor sites that most people click to.

Conversely, advertisers might want to try a bottom-up approach, developing campaigns for small but dedicated audiences at certain sites, and building a sizeable budget to them. With this approach, niche clients might achieve higher CTRs than competitors in a similar industry.

To learn more about how to make programmatic advertising work for your local market or industry, look to the Interactive Advertising Bureau for a deep dive into programmatic advertising, discussing what's ahead, what challenges marketers face in making this type of ad work for them, and how the industry has to change in order to survive.

In Rapidly Evolving Digital Age, Retailer Success Stems From Personalization


Our VP of sales and strategic accounts and the creator of Quantum, Brian Kroll was recently featured in a Total Retail Article focusing on retailer's success using personalization.

As retailers scramble to keep up with an ever-changing media landscape and constant technological advancement, the need to adapt and embrace new models has become abundantly clear. In order to stay ahead of the curve — and possibly to stay in business — retailers must not only listen to evolving consumer demands and habits, but respond to and anticipate them. Today’s consumers are perpetually omnichannel and “always on” with digital media, so the key to thriving in this challenging retail environment is adaptive personalization within your omnichannel customer experiences.
— Brian Kroll

Kroll dives into what personalization means, how to put it together and what's in store for retail. Read the full article here.

Proof Positive: Adtaxi’s ‘QUANTUM’ Significantly Boosts Campaign Performance



—Revamped Unveils Data on Recently Launched Optimization Engine—

DENVER (June 18, 2018)—Adtaxi—one of the nation’s fastest-growing digital marketing agencies—today launched its new company website. The revamped features a total redesign, interactive content, educational resources and a full report detailing the highly anticipated results of its performance assessment of Quantum, the company’s new optimization algorithm. Data revealed considerable gains when evaluating cost per action (CPA) of Quantum-powered campaigns against non-Quantum campaigns.

“When developing Quantum, we knew the technology would provide a cutting-edge option for advertisers that yielded unparalleled results—and now we have the numbers to prove it,” said Chris Loretto, EVP of Adtaxi. “Our goal since day one has been to provide superior value for our partners across a broad range of industries by delivering top-quality performance that in turn boosts sales. Quantum’s demonstrated success reflects this mission, and we are eager to share its benefits on our new and improved website.”

For the analysis, insights were derived from thousands of Quantum and non-Quantum campaigns across Social and Programmatic RTB, broken out by Auto and Ecommerce. Below are some of the key results: 

Social - Facebook

●      Quantum campaigns reduce the average CPA by 18% over non-Quantum campaigns

●      Automotive campaigns perform 34% better with Quantum for Social vs. non-Quantum for CPA


Programmatic RTB

●      Quantum for Native shows a 38% reduction in CPA over non-Quantum campaigns

●      Quantum for Pre-Roll shows a 55% improvement in CPA over non-Quantum campaigns

●      Automotive campaigns realize a 33% decrease in CPA with Quantum

●      Ecommerce campaigns see a 41% reduction in CPA with Quantum

“Applying Quantum to our digital advertising efforts has significantly increased performance metrics,” said Sal Gonzales, Owner, Volvo of Culver City. “Soon after launching our campaigns with the new platform, we noticed a sizeable uptick in sales numbers—propelling the dealership to not only meet, but exceed our quarterly goals. Maximizing efficiencies in advertising is a huge win for us.”

Launched in early April, Quantum is the next evolution of Adtaxi’s proprietary platform, Magellan. The new algorithm leverages machine learning to drive cross-channel optimizations and deliver exceptional performance. All the same powerful single-platform optimization capabilities of Magellan remain available with Quantum—now with the addition of a true digital omnichannel solution. First offering the omnichannel capability to Auto advertisers, Adtaxi plans to expand to Ecommerce and additional categories in the near future.

Connected TV Is Expanding — Here's How to Leverage It


Adults spend more than 10 hours and 45 minutes consuming media every day, with much of that screen time taking place on computers, mobile devices, and connected televisions. An estimated 70 million households have connected TVs, which give these households more options for streaming their favorite movies, shows, and videos. In the process, these devices are giving live television a run for its money, especially when it comes to advertising.

As connected TV (CTV) becomes increasingly popular and continues to expand, advertisers, marketers, and brands need to find new ways to connect with audiences. To help you create your game plan, we've created a quick guide to exploring what CTV advertising is, along with ways to leverage its unique power.

How Is CTV Advertising Different?

Connected TV has transformed how we consume media, making content available on just about any device. It has also changed how we approach television. No longer must we sit down in front of the television at a set time on a specific day to catch our favorite shows.

CTV has also turned advertising on its head. There's no standard way to measure CTV advertising. There are no cookies to track, and it isn't tied to conventional demographic-based audiences in the same way as traditional television.

But even with the new challenges it presents, CTV advertising offers some serious benefits, including an immersive larger-screen experience (as compared to digital advertising alone), and an unprecedented ability to target audiences precisely while creating interactive ads that really resonate.

Ideas for Leveraging CTV

Advertisers just getting started in the CTV universe would do well to start by familiarizing themselves with the format's capabilities, understanding the devices consumers most often use, and understanding the formats those devices support. Once you have a solid feel for those details, you can dive into some savvy ideas for leveraging CTV's growing popularity.

Targeting Audiences Using Data

CTV advertising gives advertisers a huge opportunity to really hone in on their target audiences. Ideally, brands can use first-party data to target their audiences and tailor their campaigns accordingly. Then, they can use geography and other details to hit a bull's eye with those viewers. For example, ads could be based on viewer location and weather conditions. If it's a hot and humid day in one city, that anti-frizz shampoo and conditioner ad will run. If it's sunny and warm, a sunscreen ad might run instead.

Interactive Advertising

Keeping viewers engaged has been tricky, even for traditional television advertising. After all, it's easy to get up and leave the room for a quick break instead of watching commercials. But many CTV advertisers have found success with interactive advertising that encourages viewers to engage with the ads instead of hightailing it for the bathroom or a refill on their snacks. Combined with targeted ads that rely on user data to provide rich, relevant content to viewers, interactive advertising adds value to the viewer experience and receives a click-through rate of up to 6 percent, compared to the 0.0175 percent click-through average of most digital ads.

Optimizing Content for Multiple Platforms

CTV isn't just about televisions. Viewers can watch their programs on a variety of devices, and you want to reach those viewers no matter what device they're using. That's why it's critical to optimize content for use across computer and mobile platforms in addition to televisions.

For example, Adtaxi's programmatic advertising pinpoints the audience, uses a best-in-class tag management platform to gather data from brands' websites, and uses first- and third-party data and cross-platform targeting to deliver an amazing, cohesive experience designed to boost conversions. Learn more about how Adtaxi could help you leverage all the benefits of CTV advertising.

RTB Win Rates - Is Bigger Always Better?

shutterstock_1071186110 (1).jpg

By: Andrew Ransom“Why aren’t our win rates higher?!”

“We need to reach more users; try and get our win rates up!”

As brand advertisers become more savvy in the world of programmatic display, conversations like these are becoming more and more common. But do we have a complete understanding of how win rates affect RTB campaigns, especially those focused on prospecting new customers?

What is a win rate?

The “Win Rate” of a campaign or ad group describes the ratio of bids to wins in a particular campaign or ad group. A very “straightforward” metric in the world of RTB, some see this as a litmus test for how ad groups and campaigns are performing: when we bid higher, we win more; when we win more, we reach more potential customers. On the surface it seems simple, but are bigger win rates always better?

In order to unpack this idea, let’s start with a simple RTB scenario:

In this scenario you need to spend $100/day on two audience-targeted prospecting ad groups. For the sake of this test, the ad groups are targeting identical audiences. After running the campaign for ten days, you return to check your ad groups and see the following…

Ad Group



Win Rate












As we can see, Ad Group A had a significantly higher win rate, but Ad Group B served nearly 2.75x the impressions. But shouldn’t a higher win rate mean more impressions?!

How does pacing affect my ad groups?

Inside every demand-side platform (DSP) used to buy display inventory is a pacing algorithm. That algorithm determines how a budget is spent over a certain duration of time. Essentially, if you need to spend $100/day an algorithm might attempt to spend roughly $0.07 every minute to pace toward your goal.

Let’s start with a quick assumption: In a behavioral targeting situation, an ad group will see upwards of 10,000 impressions every minute on average.

If Ad Group A won every impression in a given minute at a $3.00 CPM, it would end up spending $30. So, Ad Group A only needs to bid on a fraction of those impressions to spend the $0.07 it needs, which is determined by the campaign’s win rate. With a 2.9% win rate, Ad Group A would need to bid 34 times to win a single impression. And to win the necessary 21 impressions to spend $0.07 per minute, Ad Group A would need to bid on 714 of the 10,000 impressions available each minute. That’s only 7% of impressions available to our DSP.

So, what happens with the other 9,300 impressions? Well, nothing. After the algorithm spends its allotted budget it simply ignores any subsequent available impressions. This leaves out thousands of impressions that could be better or more cost effective for our campaign.

What happens with a lower win rate?

At Ad Group B’s lower CPM of $1.10, it needs to win 63 impressions each minute to pace its budget spend. And at a win rate of 0.6%, it would need to bid on 150 impressions for each win. That means it has to bid on 9,500 impressions each minute to spend its $0.07 budget. That’s 95% of the available impressions, meaning the DSP ignores only a fraction of available impressions.

When a DSP has the opportunity to view and bid on nearly every impression it sees, it finds hidden gems of available inventory. This allows CPMs to drop as you buy less expensive impressions. As CPMs go down, impressions increase, and your campaign ends up serving significantly more impressions.

How is that even possible?

The reason logic runs backwards in win rates is based on how the metric is calculated. As we covered at the beginning of this piece, win rate is calculated by the ratio of bids to wins. But as shown in the figure below, Ad Group B bid on 1,330% more impressions than Ad Group A. So even with a smaller win rate, it wins dramatically more impressions.

Ad Group



Available Impressions

Impressions Bid On (%)

Impressions Bid On











To make it more clear, let’s calculate win rate a little differently. Instead of a ratio of bids to wins, let’s calculate it as a ratio of available impressions to wins. If each ad group has 10,000 available impressions each minute, then there would be 144 million impressions available over the course of 10 days. Now if we divide the impressions we won by the total available, we have the “actual” win rate of each ad group. And as you can see below, Ad Group B wins by a mile.

Ad Group


Impressions Served

Available Impressions

Actual Win Rate (%)











When should my win rates be higher?

Like all good rules, there are plenty of exceptions to this scenario. However, two stand out as important to remember.

Our first exception is a retargeting ad group. Unlike the prospecting ad groups we used before, RT ad groups tend to contain much smaller audiences who have shown specific interest in your product or brand. Because of these two factors we would want to increase our win rates and frequencies, hitting these users as early and as often as possible to move them down the purchase funnel. This will naturally raise CPMs, but we expect these ad groups to result in higher rates of conversion, thus delivering lower CPAs. So, higher win rates in retargeting ad groups will drive better ROI, because the audiences are small and have shown intent or direct interest in your product.

The second exception to this rule is in branding objective campaigns. Unlike most campaign run in RTB, which focus on direct events on the advertiser’s website, branding campaigns focus on delivering a message or increasing brand awareness with a user. These campaigns are common for political messages or newer brands seeking to increase market share. In order to deliver a message that users remember and hold on to, a campaign needs to deliver between 7 and 21 impressions within a 7-day timeframe. That means audiences need to be highly-targeted (smaller) and frequencies need to increase. Again, these two factors increase CPMs, which increase win rates. But just as in retargeting, these increases are acceptable and welcomed because they are delivering the desired result, where lower win rates would fail to deliver the large frequency in the timeframe needed.

So what does this tell us?

Win rates are a deeper and more complex metric than most RTB professionals give it credit for, and the effects of algorithms and machine learning in today’s DSPs ensure that they contain layers we’re still exploring. Even though it appears a simple stat by which to judge our campaigns, it can mean so much more if we look closer.

However, an analysis of prospecting ad groups, specifically those in conversion based campaigns, shows us that lower win rates can actually deliver better results in a great many of our campaigns. They do so by increasing delivered impressions and increasing unique users reached, which increases the “actual” win rate of your ad groups. For advertisers spending budget on prospecting in conversion based campaigns, lowering your win rates will help you make the most of your RTB dollars.

Programmatic And Politics - How RTB Can Boost Your November Strategy


By: Andrew Ransom

As politics moves from TV and direct mail to targeted online messages, campaigns are struggling to find effective and competent partners to help them reach voters in the digital space. Because of the scarcity of tested digital advertising providers, many campaigns are still missing out on opportunities to utilize some of the industry’s most effective digital tools. Among these tools, real-time bidding (RTB) stands out.

What do campaigns need from digital tools?

The ultimate strategy of any political campaign is, of course, to win votes. To win votes, a campaign needs to reach three essential benchmarks with any voter: they need to know the candidate or issue, they need to like you or agree with your position, and they need to actually cast a vote in your name or for your measure. These three benchmarks should be mirrored in three separate strategies for a digital campaign; focusing on name recognition, issue advocacy, and getting out the vote.

Can RTB help guide these strategies?

Real-time bidding is a way to purchase advertising inventory on a per-impression basis via an instantaneous auction. Using tools like DSPs, advertisers can bid on impressions based on user data, site data, and other technologies to ensure the user seeing the impression is exactly who they want. It is a vital tool for digital marketing in the private sector, and has all the capabilities to assist political campaigns in all three areas of their digital operation.

While political campaigns still rely heavily on TV and Direct Mail buys, RTB has been successfully deployed by a number of high-profile campaigns; usually well-funded statewide or national races. But within those races, both parties have spent tens of millions on programmatic advertising. It’s because they understand that TV and Direct Mail simply cannot provide the level of targeting or reporting campaigns can find in the digital space. And within RTB, those options are compounded.

Campaigns can use RTB to target users in almost every way imaginable; down the the type of operating system a user is utilizing on their device. And while these options are the cornerstone for producing incredible results, they are complicated to navigate; steering many campaigns clear of the space in recent years. This has left a huge opportunity for experienced agencies to help campaigns develop winning strategies in the RTB space, and a big advantage for campaigns willing to break through the barrier.

How can RTB help my candidate’s name ID, issue advocacy, and GOTV efforts?

One of the biggest issues for candidates has been raising their name ID in the early days of a campaign. In the past this problem has been solved with expensive TV buys blanketing districts with a one-size fits all message, or direct mail bombs filling mailboxes with palm-cards that are quickly discarded. But by building a tailored digital strategy utilizing a few tools that are unique to RTB, campaigns could instantly become more targeted and cost effective with their message.

Using audience segments from leading political data providers, and geographic overlays, campaigns can deliver tailored pre-roll messages to voters based on issues the campaign is focused on. And adding in viewability requirements, and premium sitelist targets, campaigns can ensure their messages are highly visible to their base. Using a budget similar to a TV or Direct Mail buy, campaigns can plan to reach their targeted users at a significantly higher frequency. This is vital to driving messaging and increasing candidate or issue ID in the early days of any campaign.

This strategy is also incredibly useful in the second leg of campaigns, issue advocacy. As election day approaches, campaigns kick their issue focuses into high gear. For many campaigns it’s also when money gets tight, and making every dollar count makes all the difference. This is a perfect time to utilize digital opportunities like RTB. Using a similar strategy as they did in the name ID leg of the campaign, campaigns can deliver multiple segmented messages to the right audiences in a dramatically more effective way than TV or direct mail. This is also when RTB’s measurement capabilities play a huge role. As users click through to issue microsites, and sign pledges, RTB can deliver vital insights to campaigns on where they stand with voters on each issue.

In the final weeks of a campaign, messaging focus shifts from advocacy to getting out the vote. Campaigns need to ensure that the voters they’ve won actually make it to the polls. Fortunately RTB can help, this time with a display ad strategy. By retargeting pledge signers, donors, and other aligned voters with highly viewable display ads, campaigns can deliver vital information on voting. From early voting and absentee ballots, to finding polling places. Campaigns can utilize RTB to ensure their voters make it to the polls. Where TV falls short in broad targeting, and direct mail can’t capture audience attention, RTB provides a completely unique opportunity for campaigns to urge their voters to cast their votes.

How can I find the right partner to help my campaign?

A comprehensive RTB strategy can be complicated even for seasoned advertising professionals, and completely overwhelming for campaigns focused on so many moving pieces. That’s why it is vital for campaigns to select the right partner to run their RTB operations.

Many agencies offering these services in the political space are traditional media firms or communications consultants. While they have great connections with campaign professionals, their relationships in the advertising space can be limited. This results in many of these partners using sub-par or black-box tools that don’t offer what campaigns really need. Or, they whitelist their services with another digital advertising firm, resulting in higher fees and ultimately fewer impressions served to the campaign’s targeted voters.

However, many traditional advertising agencies can provide exactly what campaigns need. They have long relationships in the industry, which helps to ensure they have tools that can provide options to campaigns. They have access to more data, allowing campaigns to segment their messages and make the most of their money. And on top of that, many traditional agencies employ former political operatives who will understand what a campaign needs, and be able to deliver optimal results.

But is RTB right for my campaign?

Almost any campaign can utilize RTB effectively in their strategy. Real-time bidding offers incredible advantages over traditional approaches like TV and Direct Mail. A campaign that can afford these operations can easily succeed in the RTB space. In fact, they can expect better targeting, measurement, and results if they move budget into the digital space.

More than any of the traditional campaign messaging approaches, RTB provides an extremely cost-effective and valuable option to campaigns that are focused on reaching voters and winning elections. If your campaign wants to make the most of your media budget, reach out and explore digital options like RTB. It could make all the difference.

The Origins and Progression of Real-Time Bidding


If you're not familiar with real-time bidding (RTB), which is a method of buying and selling digital advertising placements, here's a quick rundown, including how it could help your business.

What Is RTB?

Much like in the financial markets, real-time bidding gives businesses the chance to purchase an inventory of online advertising impressions instantaneously via online auctions.

The per-impression ad auctions involve the following:

1. Demand-side platforms (DSP) allow advertisers set buying parameters (e.g., placement, demographics, device, category, etc.), and then bids are made automatically on their behalf within certain parameters that are set up.

2. Supply-side platforms (SSP) are used by online publishers to manage their ad inventory.

3. The Ad Exchange connects the publishers selling inventory with the advertisers looking to bid.

How Does RTB Work?

A user visits a website, and a bid request containing information about the user (including browser history, demographics, and location) is sent to an ad exchange. Advertising buyers are notified of the opportunity to get their impressions in front of the user, and the highest bidder wins.

All of this happens within 100 milliseconds.

What Are the Advantages of RTB?

Before RTB was developed in 2009, advertisers would buy a bulk of impressions for the same per-unit price, even though they were all worth different values.

With RTB, you choose the individual impressions to reach exactly who you want, when you want. Because your ads are better targeted, you're saving impressions, time, and money. This more-efficient model provides an unbiased means of showing content, with prices being driven by supply and demand.

What Is the Future of RTB?

Right now, humans are still needed to manage RTB, but that could change in the future. Machine learning algorithms could likely automate the process entirely. Smart machines will be able to analyze ad performance and create a bid modifier to optimize performance.

The future of RTB is intriguing and has a bit of a learning curve, but if you're willing to invest the time you'll likley see effective advertising as a result.

Adtaxi Takes Home Third Place at INMA Global Media Awards


FOR IMMEDIATE RELEASEContact: Kari Arneson 646-695-7042

—Agency Recognized in ‘Best Marketing Solution for an Advertising Client’ Category—

DENVER (June 2, 2017) – Adtaxi, a leading and innovative digital marketing agency, won the third-place spot in the “Best Marketing Solution for an Advertising Client” category at the International News Media Association (INMA) Global Media Awards on May 23 at the awards dinner, held in New York. The Global Media Awards competition received 655 entries from 196 media companies, spanning across 36 countries around the world.

Adtaxi showcased Magellan, their proprietary optimization platform, as their submission. Magellan—which finds efficiencies in the bidding process in order to maximize marketers’ budgets dynamically across their digital campaigns—was created to help advertisers drive conversions over clicks and lower the cost of those conversions over time. Becoming a finalist at the INMA Global Media Awards shines a light on Adtaxi’s creative growth initiatives, their innovation in audience and brand development, along with their ability to maximize revenue potential for clients.

“It’s an honor to be counted amongst these great leaders of the industry who are every day working to create more innovative solutions for advertisers,” said Chris Loretto, Executive Vice President of Adtaxi. “This has been an exciting opportunity to showcase Magellan’s cutting-edge technology and the recognition it has received only energizes us to forge further ahead.”

“At Adtaxi, we believe the increasing recognition that Magellan, and our company as a whole, receives show our strength and potential as one of the nation’s leading digital marketing agencies. We hope to continue to grow and be at the forefront of cutting-edge technology and innovative digital marketing strategies,” added Loretto.

In addition to winning third place in the “Best Marketing Solution for an Advertising Client” category at the INMA Global Media Awards, Adtaxi earned the 2016 Google Channel Sales Innovator Award. This award also recognized the impressive, leading edge technology in Adtaxi’s Magellan optimization tool.

About Adtaxi Founded in 2010 within Digital First Media, Adtaxi made its mark in programmatic advertising before expanding into search, social, email and native. Over time, Adtaxi has refined and perfected its conversions-based approach, which became the foundation of the Magellan optimization technology launched in 2015. Adtaxi functions as a true partner with its clients, acting as a single point of contact and support through multi-platform campaign cycles. Find Adtaxi on Twitter, LinkedIn and Facebook.

Adtaxi is an INMA Global Media Award Finalist


We're super excited to have been selected as one of the finalists for the International News Media Association's (INMA) Global Media Awards that reward innovation in audience, revenue, and brand development. There were 115 finalists chosen from 655 entries across 36 countries. The winners will be announced on Tuesday, May 23, at the Global Media Awards Dinner in New York.

We submitted for the 'Best Marketing Solution for an Advertising Client' category showcasing how Magellan, our proprietary optimization platform, has proven to help advertisers drive conversions and lower the cost of those conversions over time. You can check out our entry here.