• by Tyler Loechner  @mp_tyler, May 31, 2013

Taptica, an Israel-based mobile ad platform with U.S. headquarters in San Francisco, today claimed to be the first to combine optimization for direct media channels and real-time bidding (RTB) exchanges. The company uses what they call a "propriety multi-arm bandit algorithm" to allow for machine-to-machine buying as well as real-time in-app event tracking.

A multi-armed bandit refers to gambler's math when dealing with slot machines. Pocketgamer.biz defined it as "the branch of mathematics that models how a gambler deals with an entire row of one-arm bandit machines in such a way as to maximise their winnings." Taptica is looking to bring that same mathematical model to mobile advertising.

The company hopes that the algorithm will allow advertisers to use more targeted campaigns rather than mass audience buying.

"We believe that this added ability will give advertisers solutions that support diverse campaigns and help them better achieve their goals," stated Kobi Markeno, president of Taptica.

A Taptica representative was not immediately available for comment.