REAL TIME BIDDING
Echtzeitauktionen von digitalen Werbeplätzen sind im Vormarsch. Das schafft marktgerechte Preise und reduziert den Aufwand für alle Beteiligten, meinen die Anbieter von Real Time Bidding-Plattformen. Real Time Bidding ruiniert die Preise und entwertet den Content, meinen Publisher. Wie mit dem Echtzeiteinkauf richtig umzugehen ist. Ist er Segen, Fluch oder beides?
3. 3
GLOBAL SCALE
Los Angeles
Seattle
Atlanta
New York
London
Paris
Hamburg
Sydney
San Francisco
Las Vegas
Salt Lake City
Phoenix Alabama
Offices
Remote People
Los Angeles Corporate
Headquarters
HR, 200+ employees
France
Publisher Development
Account Management
Germany
Publisher Development
Account Management
Australia
Publisher Development
Account Management
United Kingdom EU HQ
Publisher Development
Account Management
Milan
Italy
Publisher Development
Account Management
4. 4
RUBICON PROJECT IMPRESSIONS IN EUROPE
50+ billion
Per month
14B
11B
5B
2.6B
4.5b
0.7B
2B
2B
1B
0.5B
0.5B
1B
1B
2.2B
1B
1B
2.4B
6. 6
HOW RTB WORKS
RTB bid system
$3.25
2nd highest bid
(“charge price”)
is accepted
ad call
$3.25
- A 2nd price auction gives the highest paying
bidder the ad call at the 2nd highest price
- Publishers have complete control over who is
allowed to bid
non-RTB
demand sources
On behalf of:
$4.17
On behalf of:
$0.83
$2.09
$0.25
$1.16
$4.17
6
7. 7
RTB – BENEFITS FOR BOTH BUYERS & SELLERS
MORE LESS
Efficiency Work on manual,
repetitive tasks
Speed Human error
Margins Fax
Insight Excel
Revenues 20-30%
operational costs
= more time to focus on high value creative partnerships
8. 8
RTB = THE PROTOCOL FOR ONLINE AD TRADING
• Transparent, industry-agreed standard shared by all
operators in the market
• Like HTML is for the web
• Authorised and governed by IAB
• Granular controls to protect direct sales
17. 17
DEFINITION & BENEFITS OF PRIVATE MARKETPLACES
DEFINITION: A direct deal between an individual buyer and a
publisher, executed through the RTB protocol.
BENEFITS:
o Introduce new advertisers
o Reduce the cost of managing performance advertisers
o Leverage strength in creative solutions to take a larger share of
display
o Capture spend from existing advertisers without causing channel
conflict
o Leverage existing trading agreements for preferential pricing
o TIP: Use the Bid Landscape Report as a ‘feedback loop’ for new
advertisers & PMPs
18. 18
RTB IN THE INVENTORY STACK
CPM
Class 2
Non-Guaranteed
Class 1
Premium
Premium
RTB
Networks & Exchanges
19. 19
PRIVATE MARKETPLACES BLURRING THE LINE
Standard RTB
First Right/Private
Premium
Preferred
(Floor Override)
GuaranteedNon-Guaranteed
Premium
RTB
Networks & Exchanges
23. 23
A VISION SHARED
‘Anything that can be transacted automatically will be’
Katie Eyton, Executive Director, Digital, Manning Gottlieb OMD
‘Over the next three to five years, you will see that the majority of
digital advertising is being traded through programmatic systems’
Brian Lesser, CEO, Xaxis
‘Private marketplaces are another step towards what could be the
majority of digital ad spend going through platforms’
Marco Bertozzi, MD EMEA, VivaKi
‘All ads will be traded programmatically within five years.’
Jamie Labate, MD of Advertising, Dennis Publishing & Chair of
UK Association of Online Publishers Commercial Committee
24. 24
RTB – FEARS & SOLUTIONS
FEAR SOLUTION
Channel Conflict Granular Controls in RTB
CPMs not as High as Direct Sales CPMs in Private Marketplaces as High &
Higher, With Overhead Costs Removed
Loss of Jobs New Roles Created: Among them, Analysts
& Yield Managers
Lack of Skills Training & Guidance Provided by
Consultative Tech Partner
Esiste dal 2006 – uffici LA, SF, NY, CH, UK, FR, DE, IT, AU6.5 b imps mese / 2 trilioni di bids1 comscore reach in Usa6xnasdaq40x visa2x amazon cloud100 dsp400 ad network140k adv
With a standard auction, a bid request goes out [Click] to more than 20 DSP’s for a particular user and impression. For example, 2 of those DSP’s return bids for each of their clients, [Click] one being for NIKE for $4.17 and another for Vodafone at $3.25.When those bids are returned [Click], they are compared [Click] against what might be the highest paying ad network tag and a mini auction ensues. [Click] The highest bid is from Nike, therefore Nike wins [Click] the impression at the 2nd highest price $3.25 per thousand. [Click]Within this standard auction a publisher has all non guaranteed inventory competing within an open marketplace to be monetized for the highest possible yield.
Reiterate here the granular controls available in RTB.
The biggest change in agency make-up of the last 20 years, and all in the last 2 years.Xaxis has around 35 staff in the UK…
Field this question to the audience and wait for their response… The question is deliberately jargon-y…
It’s Excel. And what about the cutting edge, best-in-breed hardware backing it up? Can anyone guess?
This research from a company called NextMark puts this into stark relief – showing that the average order process takes 12 pairs of hands and around 50 processes.This massively laborious and inefficient process is the direct result of publisher business’ reliance on the fax and the spreadsheet.
I am sure many of you have seen the triangles before.. We love our inventory pyramids at Rubicon! Due to the increased targeting and subsequent reduction in media waste, RTB generally delivers rates higher than publishers previously yielded from Ad networks
Private Marketplaces today sit as a layer between premium and what remnant (horrible name anyway!) The reason for this is they blur the line between the two..
Joanna O’Connell at Forester has written about our space for many years and now predicts a bifurcated future where the market is split between ‘automated’ and ‘custom’ buys. In this future, any standard format can be traded programmatically. This doesn’t mean the ‘sell’ goes away, just that the delivery process and workflow is minimised. It also allows publishers to focus on something that they have as a competitive asset against the likes of Facebook and Google…