Project done by IIMB students on efficient mechanisms for mobile advertisements

1. Group 8
Chanchal Subhash 1212013
Harkawaljit Singh 1212019
Iqbal Khan 1212021
Sandip Jalan 1212047
Efficient Mechanisms for Mobile Advertisements

2. AGENDA
Introduction
What is Mobile Advertising?
Mobile Advertising – Ecosystem
Steps to launch a Mobile Ad Campaign
Pricing Models Comparison
Pricing Strategy Recommendations
Factors Influencing Pricing
Cost Per Mille
Cost Per Click
Cost per Install
Real Time Bidding

3. WHAT IS MOBILE ADVERTISING?
Source : Crispmedia.com

4. ECOSYSTEM
publisher
advertisers
What’s in for Publisher
 Monetize its Applications developed on Android, iOS,
Microsoft OS
 Get Advanced analytics and transparency of the visits
 Cross selling opportunity to promote its own apps or
websites
What’s in for advertisers
 Mobile is increasing as a platform for communication, and has
acceptance equivalent to that of TV or online
 More efficient campaign runs on mobile, and enable targeted
campaign
 Measurable matrix and analytics to gain insights and transparency
of the channel
What’s in for Ad-Network
 By managing inventory of demand and supply, targeted
advertisement and gain revenue through brokerage
 Promote rich media formats including native content to
become ad-network of choice both for publisher and
advertiser

5. STEPS TO LAUNCH A MOBILE AD CAMPAIGN
1. Basics: Choose your campaign, budget and schedule
2. Objective: Choose your advertising objective
 Promote Apps
 Generate Leads
 Promote Content
 Generate Awareness
3. Target: Choose your audience
 Region / Location
 Devices
 Customer Age
 Schedule
 Others
4. Pricing: Choose how you want to bid for your ads
 CPC
 CPM
 CPA/CPI
5. Content: Create your ad

6. PRICING MODEL (BID TYPES)
Pricing Models
Cost per mille (CPM): This bid type is best for getting
people to view your ad
Cost per click (CPC): This bid type is best for getting
people to click your ad
Optimized cost per mille (oCPM): This bid type is best
for showing your ad to the people who are most likely to
take action on your ad. For example, liking your Page or
clicking a link
Cost per Install (CPI): When available, this bid type is
best for getting people to take action on your ad [CPI =
spend ÷ (number of install)]
Effective Revenue Share (ERS): This bid type is best if
you have a revenue goal. For example - purchases on the
advertiser's site [ERS = (spend ÷ revenue) × 100]
Return on Advertising Spend (ROAS): This bid type is
best if you have a revenue goal. For example - purchases
on the advertiser's site [ROAS = (revenue ÷ spend) × 100]

8. FACTORS INFLUENCING PRICING
• Advertiser’s Needs
– Advertiser’s need will decide on what kind of pricing will attract the advertiser
• Publisher’s goals
– Publisher will have his own revenue maximization goals which can be used to
define filters
• Revenue maximization considering uncertainties
– The Ad network need to account for the fact that not all ad displays will yield
the same revenue and hence need to optimize to increase revenue

9. • Looking for awareness of Product / Brand
• Looking for maximum impressions in specified
timeslot
• Want the user to actually see the impression
• Want users to believe in the impression
Advertiser Needs
• Higher bids allow faster impressions
• Impact of impression depends on
placement, type and size of property
• Impact also depends on the trust placed
in the hosting site and availability
Influencing factors
CPM (COST PER MILLE) BIDDING
Suggestions for Ad-Networks
• Show details of the bid keeping it anonymous: To encourage user to put in actually what he is
ready to pay
• Winner will have to pay one cent more than the second highest bid : To prevent user from
experiencing winner’s curse
• Indicate to user the time needed to reach target exposure with given bid: To allow non aggressive
users to bid lower and aggressive ones to bid higher
• Type of property must be a filtering criteria : To provide better yield for better types of property
• Time of exposure must be filtering criteria: To provide better yield for properties with higher
exposure time
• Rating of hosting site: To ensure the reliability of the impression actually happening

10. • Want the user to investigate the product
• Not sufficient to see, Must generate
interest
• If possible generate leads
Advertiser Needs
• Higher bids will mean more leads in
lesser time
• Quality of leads important
• Reduce cost per lead
Influencing factors
CPC (COST PER CLICK) BIDDING
Suggestions for Ad-Networks
• Reserve high visibility properties for CPC based ads
• Have cross bidding between CPM and CPC with a factor reduction on CPC bid to account for
probability of click.
• Think about linking CPC with CPI

11. • Pay only for Conversions
• Minimize total cost of advertising
• No need to worry about creative
Advertiser Needs
• Cost per install as percentage of average
sale amount
• Ability to infer acquisition
Influencing factors
CPI (COST PER INSTALL) BIDDING
Suggestions for Ad-Networks
• Allow easy creative creation to increase probability of conversion
• Have filters / entry criteria when offering CPI
• Conversion should be measureable e.g. App download
• Use CPI as proof of value creation by the ad-network, but charge as CPC

12. REAL-TIME-BIDDING

13. REAL TIME BIDDING (RTB) VALUE CHAIN
Buy Side
Infrastructure
and Delivery
Sell Side
PUBLISHER
SUPPLY SIDE
PLATFORM (SSP)
Ad EXCHANGE
Ad NETWORK
Advertisers
DEMAND SIDE
PLATFORM (DSP)
MEDIA AGENCY
Source: http://www.siemer.com/
Publisher/ Visitor Profile
Bidding for this Publisher/ Visitor Highest bidder gets to display its
Ad to this Publisher/visitor

14. Real-Time-Bidding
What is RTB ?
• Real-time bidding (RTB) refers to the means by which ad inventory is bought and
sold on a per-impression basis, via programmatic instantaneous auction.
• Advertisers bid on an impression and, if the bid is won, the buyer’s ad is instantly
displayed on the publisher’s site
How RTB works ?
• A typical transaction begins with a user visiting a website. This triggers a bid request
that can include various pieces of data such as the user’s demographic information,
browsing history, location, and the page being loaded
• The request goes from the publisher to an ad exchange, which submits it and the
accompanying data to multiple advertisers who automatically (programmatically)
submit bids in real time to place their ads
• The impression goes to the highest bidder and their ad is served on the page
Limitations of mobile RTB
• No universal cookie for mobile as there is for PCs, so the principal means by which
ad networks can track and target users is not available
• Ad networks have to use other means to reach the target audience like contextual
data supplied by the publisher (i.e. about the nature of the site and audience), and
use smart algorithms to figure out the user profiles

15. What are the benefits for publishers?
• Delivers higher revenues on inventory through opening that inventory to a
buying market designed to maximize the value of each individual impression
What are the benefits for ad networks ?
• Better revenues in revenue share models as Publishers get better revenues
with RTB
• Increased control over campaign performance
• Increased spending efficiencies
• Better results delivered for clients
What are the benefits for advertisers?
• Enhanced consumer targeting capabilities
• More cost effective reach and frequency
• Near elimination of wasted impressions and ad dollars
BENEFITS OF REAL-TIME-BIDDING
RTB is clearly outperforming traditional ad buying with application to mobile advertising.

16. THANKS