How RTB Can Increase Your Revenue -- Paul Childs, Experienced Chief Marketing Officer, Mopub (The White Nights: Mobile Games Conference http://www.wnconf.com/).

1. White Nights
Mobile Games Conference
St Petersburg
June 27 – 28 2013
Paul Childs
Vice President and
General Manager EMEA
paul.childs@mopub.com
@paulchilds @mopub

2. MoPub gives publishers the tools to create a
successful mobile advertising business
§ Founded by ex-Admob and ex-Google
§ Launched late 2010
§ VC backed: Accel, Harison, Iris, Jafco
§ Processing 45b+ ads p/m
§ Estimated 500m unique users p/m
§ Current run rate $100m p/a 1)
San Francisco
New York
London
Singapore
1) Techcrunch article 30 May 2013 : http://techcrunch.com/2013/05/30/mopub-100-million-revenue/
MoPub is the #1 ad server and exchange in the app economy
Estimated 70+ staff by H1 2013 across 4 offices

3. mobile RTB makes sense

4. Non-RTB / SSPs / mediation / ad networks
Publishers/developers
Non-RTB /
SSPs /
mediation /
ad networks
Ad networks 1)
1)
Source
:
List
of
ad
networks
from
Mobile
2013
Lumascape
+ 200 more …."

5. Non-RTB model is broken for publishers
Non-RTB model!
Use legacy data to optimize"
Too many manual overrides"
Inventory partitioned off"
Not always highest price paid"
SSPs wearing multiple hats"
RTB model!
Per-impression bidding"
Automation"
All inventory in-play"
Highest price paid"
Marketplace economics"

6. Non-RTB model is broken for advertisers
Non-RTB model!
Price negotiation"
Inventory negotiation"
Delayed optimization"
Lack of margin transparency"
Lack of PUB transparency"
RTB model!
Marketplace sets the price"
Algorithmic"
Real-time optimization"
Margin transparency"
Publisher transparency"

7. How RTB works
Ad requests"
Winning bid"
Bid requests"
Bids + ads"
Ad server /
RTB exchange
DSP n"
DSP 1"
DSP 2"
Auctions"
§ DSPs evaluate bid requests"
§ Some respond with bids"
§ Auction selects the highest bid"
§ Winning ad is displayed"
2!
3!
4! 5!
6!
7!
8!
9!
1!

8. Mobile RTB
Publishers
Mobile RTB
Exchange
DSPs
+ 50 more …."

9. mobile RTB for publishers

10. MoPub Quarterly Insights Report:
Core demand trend metrics
1)
Source
:
MoPub
Q1
2013
Quarterly
Insights
Report
- Mobile advertising had a slower than expected start to Q1 2013!

11. MoPub Quarterly Insights Report:
Average monthly CPMs
1)
Source
:
MoPub
Q1
2013
Quarterly
Insights
Report
< 1%!
spend!
- iOS users have iTunes account!
- More likely / comfortable to purchase via mobile!
Poor CTV!
- Android disillusionment !
eCPM!

12. MoPub Quarterly Insights Report:
Average monthly CTRs
1)
Source
:
MoPub
Q1
2013
Quarterly
Insights
Report
CTR!
- Slow start to the year !
- Buyers sought out less expensive access to high value iOS users!
- Feb -> Mar brand budgets started with demand for higher priced and quality inventory!
iOS CTR = 2x Android!
Brand dollars!

13. MoPub Quarterly Insights Report:
Ad spend share
1)
Source
:
MoPub
Q1
2013
Quarterly
Insights
Report
- Over 50% of ad spend on iPhone driven by spend from two different groups!
- Decreased spend on Android after high end devices not delivering conversions!
- Brand spend Feb -> Mar increased iPhone share of total ad spend!

14. MoPub Quarterly Insights Report:
Rich media v static banners
1)
Source
:
MoPub
Q1
2013
Quarterly
Insights
Report
- MRAID ads generates CPMs and CTRs!
- MRAID spend concentrated on iOS!
- Android unable to capitalize on increased value from rich media!
- Opportunity for other Android ad formats to steps and fill the void!

15. MoPub Quarterly Insights Report:
Adoption of larger ad sizes grew exponentially
1)
Source
:
MoPub
Q1
2013
Quarterly
Insights
Report
- CTR of 480x320 10x CTR of 320x50!
- The disparity between
interstitial size and
standard size increased
exponentially from Jan to
Mar due to 1) increased
demand, 2) new brand
spend and 3) game
developers aligning turn
based games with
interstitials!
- A larger image has a
bigger impact due its
ability to attract attention!
AVG 10 x!

16. mobile RTB for advertisers

17. When compared with non-RTB, mobile RTB
provides significantly improved CTRs
1)
Source
:
Adfonic
Adsnap
report
on
MobileRTB
2012
231%
191%
167%
138%
112%
103%
94%
67%
63%
54%
48%
Performanceuplift
Uplift in CTRs for mobile RTB v non-RTB across advertiser verticals
- Across all verticals the average CTR uplift is 97% or double that of non-RTB!

18. CTR performance improves globally
1)
Source
:
Adfonic
Adsnap
report
on
MobileRTB
2012
UK
US
AUS
NEL
FRA
MEX
CAN
ESP
GER
ITA
100%
97%
80%
56%
53%
46%
45%
40%
27%
10%
Top 10 uplifts in CTR for mobile RTB v non-RTB across countries
Performanceuplift
- UK delivers 2 x more clicks for the same number of impressions!

19. Rich media and mobile RTB is an explosive mix
1)
Source
:
Adfonic
Adsnap
report
on
MobileRTB
2012
Non-rich media on non-RTB
Rich media on non-RTB
+65% uplift compared to non rich media
Rich media on mobile RTB
+53% uplift compared to rich media on non-RTB
165%
100%
218%
- Quality and quantity of
data enable the right bids
to be made at the right
price!
- Uplift triggered by
enhanced format leading
to increased likelihood to
click!

20. Mobile RTB makes data work harder
1)
Source
:
Adfonic
Adsnap
report
on
MobileRTB
2012
Age
Gender
455%
669%
Percentageincrease
Increase in quantity of demographic data for mobile RTB V non-RTB

21. Effect of mobile RTB algorithmic optimization
1)
Source
:
Adfonic
Adsnap
report
on
MobileRTB
2012
Submission rate
Win rate
- 86%
428%
- Agencies and advertisers can bid far fewer times!
- Yet win impressions at a far higher rate by targeting the right audience!

22. Uplift from mobile RTB v non-RTB on CTRs and
eCPMs
48%
64%
CTR
eCPM
1)
Source
:
Adfonic
Adsnap
report
on
MobileRTB
2012
- Consequently, more efficIent algorithms have an impact on CTRs and eCPM!

23. mobile RTB case studies

24. Case study 1
Half brick maker of Fruit Ninja
Challenge
§ Increase mobile ad revenue
§ Work with global user base
Action
§ Installed MoPub SDK
§ Access to publisher self-service tools
§ Participation in MoPub Marketplace
§ Per-country waterfalls to increase eCPM
§ Relationships directly with ad networks
Outcome!
§ Increased monthly ad revenue by 2,5x "

25. Case study 2
Optime Software
Challenge
§ Increase mobile ad revenue
§ Manage advertising quality
Action
§ Installed MoPub SDK
§ Optimised yield between ad networks and RTB
§ Participation in MoPub Marketplace
§ Creative control settings and customized
blocklists to ensure advertising is appropriate
for family audiences
Outcome!
§ eCPM increased by 15%"
§ Managing a portfolio of 34 apps"

26. Talk mobile RTB with mopub
Stand #G3