What’s the matter with the program ads in the grocery store?
Several years ago, a new grocery store was opened in the south of Xianchu City, which was listed as “Yibai grocery store”. At the beginning of the store, the owner posted a notice at the door of the store to publicize his business philosophy. The notice says:
Since the beginning of the grocery store, it’s natural for customers to enter the store to pick up goods. We are looking for new ways to find customers for our products. How can we find them? Just look in the shop.
In addition, any commodity transactions in our store invite different suppliers to come and bid, which is a major feature of our store. We are looking forward to your coming.
This notice is really novel. At one time, the residents of Xianchu city came to find out. The shopkeeper said to everyone in a mystical way: you all think I’m opening a grocery store, in fact, I’m learning procedural advertising. In this way, people are even more confused.
“What’s the connection between such a grocery store and procedural advertising?” In the face of people’s puzzled eyes, the grocer began his nonsense.
Real time bidding system of grocery store
One day at noon, a big man came from the shop to buy something. As soon as the big man opened the curtain, he was ready to enter the shop. The little boy hurried to the inner room, where he temporarily acted as a place for goods bidding and gathered a group of principals. These consignors, appointed by the consignors, vowed to find the right customers and sell more and more of the consignors’ goods accurately. Among them, clients a, B, C and D respectively represent the back supplier, and the goods to be sold are medicine, straw shoes, razors and rouge.
The waiter panted and asked everyone that there was a man eight feet tall in the shop. Who wants to deliver the goods?
D think: big man is not the target user of my Rouge business, withdraw as soon as possible. However, a, B and C showed great interest in this man. The junior two told ABC the height, weight, native place, age, appearance characteristics and other information of the big man, and stressed that the ownership of this business, according to the old rules, needs to pass a round of bidding, everyone thought in their hearts how much commission they would like to pay for this business, and after he counted 321, everyone showed the price at the same time, and whoever offered the high price, the business would belong to who.
ABC has nine in mind. A thinks that he will go to the drugstore directly to buy medicine. If he comes to the grocery store, he doesn’t have to buy medicine. Let’s offer a guaranteed price. B, referring to the offer made in the past few days, thinks that the normal offer will surely win the business. C has read the information. The big man may have a blind date in the near future, and 80% of them need a razor to tidy up their instruments. The probability of making this business is not low. In this way, be radical , take it down.
So, in the final bidding result, a will pay 1.78 yuan, B will pay 2.20 yuan, and C will pay 3.00 yuan.
The bidding result is obvious. C offers the highest price, so the business belongs to C. after that, pay 2.21 yuan to the store.
C immediately informs the merchant who entrusts him to come to auction C to deliver the razor to the shop. If the big man is really happy, he immediately bought the goods, and the deal is over. Everyone is ready for the next auction.
The above strange story corresponds to the general process of RTB (real-time bidding). How does it correspond?
Media accept users as traffic, and sell the traffic to advertisers to realize realization. Due to the large number of media, in reality, advertisers do not directly connect with the media, but through DSP (demand side platform demand side platform, understood as finding the right traffic, advertising alliance, corresponding to the principal of the grocery store); in the procedural advertising mode, the media does not directly connect with DSP, but through ADX / SSP (AD Exchange advertising trading platform / supply side platform provider platform, in most cases, the two functions overlap, which can be understood as the auction house in the grocery store).
So the above logic becomes:
According to the above logic, translate the above story:
Customers who go to grocery store to buy things are users. They are the ones who see advertisements and may generate click and conversion behaviors;
Naturally, grocery stores are media, such as websites or apps. They use product services to attract users as traffic pools, and use ads to sell traffic for cash;
The temporary trading place in the grocery store is ADX / SSP, whose duty is to connect with the client below and select the most appropriate advertisement for the media;
The client is DSP, whose duty is to select the most suitable traffic for advertisers;
The merchant is undoubtedly the advertiser who needs to advertise.
What’s different is that the whole process of bidding and giving the final advertisement takes no more than 100ms, almost reaching the real-time effect, which is also the origin of the name of RTB (real-time bidding).
The rules of bidding are very simple: those with high price will get the settlement of secondary high price.
In contrast to the grocery store sales process, the real-time bidding mechanism of procedural advertising is not difficult to understand. In order to facilitate comparison, it is arranged as follows:
Ka’s privilege: procedural direct transaction
Before long, the merchant Ding complained about the bidding process. He could not help complaining to the grocery store owner that every single business should be auctioned, even if it was a small fish and shrimp that were auctioned with him. There were also those who sold straw sandals, and those who sold medicine. And the guy who sold medicine had a quality problem last month. Didn’t the auction with this kind of goods give me a share?
Considering that the buyer a is indeed a big customer in the store and has a good reputation in the business world, it’s not appropriate to put it in the hut and compete with the younger generation. The owner promised to bypass the one-to-one bidding with the seller a according to the negotiated price.
Corresponding to the program advertising, it is the program direct purchasing (PDB). Usually brand advertisers will choose this mode.
Procedural direct procurement is essentially a differentiated service for Ka (core customer) La (key customer), which can not only delineate the head flow, but also stimulate the waist flow.
Direct purchase can be divided into two types: one is preferred deals, with guaranteed price but not quantity; the other is programmed guaranteed buying (PGB for short), with guaranteed price and quantity.
Total purchase flow
The above is the most ideal situation. In fact, it is unlikely that the bidding client will only squat in the “one white grocery store”. More commonly, the client appears in the bidding cottage of “two white grocery store” and “one black grocery store” with the wind and fire wheels. As long as there are suitable customers in these places, he will try it at the first time.
Correspondingly, the logic of buying flow naturally becomes the whole buying.
DSP interfaces with all ADX / SSPs on the market, defines the traffic to be won according to the bidding time, speed, frequency, online budget and user orientation, and actively participates in bidding.
Careful friends may be curious. C, the client, runs so recklessly to buy things. Isn’t he afraid that the merchant has used too much money to account for him?
In fact, the first thing we need to fill in for advertising in Taiwan is the advertising budget. Below the online budget, we need to buy the best quality traffic (of course, the quality of traffic is closely related to the budget bid). Once we reach the online setting, the advertising plan will automatically stop. There are also exceptions. If it is the downloading and activation of the supporting effect ads in the middle platform, it may exceed some advertisers’ budgets in one cycle, but don’t worry too much. On the one hand, the over budget can bring positive effects, on the other hand, if the effect is not significant, the flat platform will make compensation.
Back to the original story, after client c finished the business, it needs to determine whether the price is appropriate and how to make it next time according to the response of the customer. For example, if several long bearded men didn’t buy this razor at the end of the day, it can be concluded that such customers don’t have a cold for the razor. Next time, C can consider not participating in the auction.
Corresponding to the programmed advertising, DSP needs to get the user installation and activation data returned by the media to evaluate the effect and adjust the bidding strategy in the next stage.
However, some grocery stores are very strict, especially the one with the boss’s surname of I and OS, who is not willing to add data statistics SDK to the goods at all, which leads to the data return line being blocked and the client can’t get enough downstream data, so he can only be an eye closed player.
This problem has attracted countless heroes. Here is the solution.
On the basis of merit and reward — S2S docking
S2S can not only solve the problem of data return, but also answer another question: who helped sell the goods?
The grocery store helps the merchant sell the razor to the big guy. If the user thinks it’s easy to use it after using it, and the merchant buys one for his brother after a few months, that is to say, there is a buyback behavior. At this time, the significance of selling goods in the grocery store is really achieved. Therefore, the grocery store has a good reason to charge the merchant a part of extra money as hard work fee. Stocktaking by the merchant: Unfortunately, this razor was sold by three entrusted managers A1, A2 and A3. At last, it did sell a lot. It’s not clear how many his three brothers sold respectively. It’s a bit awkward.
Before “reward for merit”, the first problem to be solved is “who helped sell the goods?”.
In terms of procedural advertising, the question becomes: which channel should advertisers reward when advertising generates revenue at downstream users. This is the time for S2S (server to server) attribution.
S2S is mainly built between advertisers (taking DSP as an example) and advertisers.
The core idea is not so complicated. Each consignor’s agent’s goods are marked with an exclusive mark. When the customer comes to repurchase with the goods, he will know which consignor brought the repurchase according to the mark. By the way, the problem of data return is solved.
Of course, the implementation is not as simple as the above. The flow chart is as follows:
Picture from program advertising
The anti cheating of program advertisement
Procedural advertising completely relies on the model, leaving a wide operating space for many dishonest cheaters.
After a period of observation, grocers divided cheating into two categories.
The first kind of cheaters don’t do anything with money, which happens to some chicken thieves’ clients: anyway, I help the merchants to get the hard money in the auction. When I raise a brand and offer a price at will, I have money to take it. It’s nothing to do with whether I can sell it or not and whether I can sell it well. If I have a bad reputation, I will change my vest and continue to do so.
The second type of cheaters, the main energy spent on cheating money. In the former category, with the strict supervision, no big water can be produced, but this kind of bad guy has become the main hazard.
Mainly in three advertising links: exposure, click, conversion cheating. For example:
When Dahan arrived at the shop, he didn’t see the razor clearly. I told the advertiser intentionally that it would cost him a lot to see it – exposure link
When Dahan arrived at the shop, he just glanced at the razor, but he didn’t touch it. I told the advertiser that he would have to work hard to touch it – click link
The big man went to the shop, picked up the razor and played for a while, but didn’t buy it at last. I purposely told the advertiser that he had placed an order and would have to work hard to pay for it – the transformation link
It can be seen that in the funnel of advertising transformation, speculators are all pervasive. In addition, the following cheating strategies may be more effective