NEWSSUMMARY

"Google is actually an advertising technology company, " the president of Google Greater China admitted at today's Partner Day event. Google, an advertising technology company that has been active in the Chinese market, is now bringing new advertising technology "private advertising market" to Chinese partners.

“Google is actually an advertising technology company."

At today's Google Partner Day event, Scott Beaumont, Google's president for Greater China, used the phrase to describe Google on stage. Scott Beaumont says that, in addition to search advertising as one of the most lucrative advertising models on the Internet, Google has been exploring new forms of advertising. Today, for example, Google brings private marketplace, or PMP, to its Chinese partners.

In today's advertising sales model, both direct sales and non-direct sales models have pros and cons. For example, for the direct sales model, because it brings together the high quality resources of publishers, it has a high CPM (cost per thousand people) and market share, but its operating costs are relatively high and can not effectively use big data to improve delivery. For non-direct sales models, it also faces a reduction in CPM, advertising often can not ensure the delivery of the situation.

So google's idea is that there is a way to manage high-quality advertising space while balancing efficiency and price? The private market was born as a result.

In Google's view, public bidding is not all about procedural purchases (referring to the process of automating purchases by advertising media through digital platforms, on behalf of advertisers), and it will be a procedural purchase outside of public bidding, collectively referred to as the private market. Because advertisers have limited high-quality direct sales, many brand advertisers are turning to non-direct traffic. But because of concerns about audience quality, there is often a reluctance to commit to high CPM, and the use of priority trading rights can solve the problem.

For example, when an ad display request occurs, a specific buyer can prioritize whether the show is needed, follow the designated CPM if needed, and if not, the publisher can open the show for auction. In this way, buyers have the right to judge the match, in the need for wide investment, buyers priority access to the ideal advertising display, can ensure that the proportion of advertising space. When you need to deliver accurately, you can use data and algorithms to make your budget work on your target audience's presentation. Publishers can also easily convert a portion of auction traffic into direct sales traffic to increase revenue. Google calls this way of making money from open-priority trading rights the preferred deal.

In addition to preferred deals, Google has introduced private bidding in the private market. Advertisers can add specific buyers to the whitelist, allowing only whitelisted buyers to participate in bidding, which combines the advantages of bidding and direct selling, that is, to ensure the matching of high-quality advertising space and corresponding creatives, but also to ensure revenue.

In private auctions, buyers can also add publishers to the whitelist to ensure safe exposure. After all, some brands have certain requirements for the type of display site. In the near future, Google will also introduce a "procedural reservation" mechanism, where traditional direct sales models for reserved advertising spaces will be combined with procedural purchases to increase efficiency and save operating costs with data and automated tools.

So Google's private market uses a combination of public bidding and traditional direct selling. With preferred transactions, private bidding, and procedural reservations, you can deliver efficiently and accurately with algorithms and data like public bidding, with control similar to direct sales. This is a new trading model for buyers and sellers on the AdExchange platform.

Since Google has just brought the private market to its Chinese partners, it remains to be seen how it will develop, but PMP does better connect buyers and sellers, according to Google's U.S. statistics.

In addition to refactoring the ad trading model, Google also believes that the content and connectivity features of the advertising industry will also be refactored. The so-called content refactoring is that people are now more inclined to use a more three-dimensional, more interesting carrier to receive information, which naturally brings opportunities for content refactoring. Because of the increase of information carriers, this also puts forward new requirements for interconnection. How to better mine the connected value of multi-screen conversions and maximize them is also something Google is thinking about. Clearly, cross-screen mobile advertising has become the direction Google is exploring. This means that in the future, all kinds of devices equipped with screens are likely to appear advertising.

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