Impression volume vs Quality — David Finkelstein // BDEX

David Finkelstein, Co-Founder and CEO of BDEX, explores the impact of volume versus quality in marketing. As advertising budgets tighten and performance declines, brands are increasingly seeking greater value from media buyers. Unfortunately, there's no motivation for media buyers to prioritize quality over buying volume when there's a chance of budget reductions if they can provide the same level of performance with less money. Today, David discusses impression volume versus quality.
About the speaker

David Finkelstein

BDEX

 - BDEX

David is a Co-Founder and CEO of BDEX

Show Notes

  • 02:00
    Impression volume vs. quality in advertising
    David's AdExchanger article stemmed from frustration with companies valuing quantity over quality in advertising. Many prioritize access to more people, but this often results in buying access to bots and click farms and the dilution of campaign performance.
  • 04:14
    The relevance of impression volume in advertising
    Impression volume matters, but it's crucial to focus on quality impressions from real people to improve conversion rates and cost per conversion significantly. Eliminating impressions from bots and click farms can lead to a 100% improvement in these metrics.
  • 05:30
    The issue of misaligned incentives in media buying
    The problem of prioritizing quantity over quality in traffic buying exists because media buyers and platforms profit from it. Media buyers often seek scale to protect their budgets, which makes it challenging to focus on quality.
  • 06:54
    Strategies to eliminate bot and click farm traffic
    Brands are putting more pressure on media buyers and platforms to identify IDs associated with ad fraud to improve performance. BDEX has developed technology to identify IDs that show evidence of non-human activity to eliminate them from the audiences brands are building.
  • 08:57
    How BDEXs technology identifies bot and click farm traffic vs. human traffic
    An AI engine analyzes 400 billion data signals monthly, including IP addresses, emails, hashed emails, and mobile IDs to distinguish human activity from bot activity. Human activities have distinct footprints that differ from bot activities, allowing for the identification of non-human IDs.
  • 10:00
    Distinguishing human from non human behaviors across platforms
    BDEX goes beyond ad clicks by analyzing interactions across platforms to compare them and distinguish between real users and bots. They assess the same consumer's engagement at different times and platforms based on IP address and mobile ID.
  • 11:04
    Barriers to efficient media buying
    The main barrier is a lack of education and understanding among brands, media buyers, and agencies regarding the underlying technical aspects of identity data. It requires a specific level of expertise that not everyone possesses, which is why education is crucial.
  • 12:33
    Cost benefit of data enrichment for audience refinement
    The enrichment process is relatively inexpensive with platforms like BDEX. The cost is typically outweighed by the significant increase in return on ad spend, which can reach 40%-60% when using cleaned data compared to off-the-shelf audiences with potential bot traffic.
  • 14:03
    The prevalence of click fraud in advertising channels
    This is an issue happening across social, the open web, and increasingly in CTV. One of CTVs biggest problems is its limited inventory, and this incentivizes fraudsters to create more inventory at scale to drive more opportunity.
  • 15:06
    Shifting away from impression volume in media buying
    While there was a trend toward CPA-based buying in the past, cookie deprecation and data privacy changes are making it difficult to accurately track where impressions came from vs. conversions. As a result, the CPM metric will continue to prevail.

Quotes

  • "When you're looking at buying quantity, you're often just buying access to bots, click farms, and all kinds of junk that are diluting your campaign metrics and the ultimate performance of your campaign." - David Finkelstein

  • "If you get rid of impressions that are to bots and click farms, and concentrate on building campaigns that are only targeting real people, you can improve your conversion rates and your cost per conversion by 100%." - David Finkelstein

  • "Real human activities have a different footprint than bot activities. And by analyzing those footprints, we're able to identify the IDs that are associated with bots and click farms." - David Finkelstein

  • "We're seeing anywhere from 40 to 60% increase in return on ad spend for advertisers that are using cleaned data vs. an off the shelf audience where there might be bots and things like that." - David Finkelstein

About the speaker

David Finkelstein

BDEX

 - BDEX

David is a Co-Founder and CEO of BDEX

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