Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks
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Ben Barokas, Admeld's Co-founder and Chief Revenue Officer presents "The Rise of RTB" at Dmexco Night Talks in Munich, Germany on April 5th, 2011.
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Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks
- 1. DMEXCO Night Talks – The Rise of RTBBen Barokas, Founder & Chief Revenue Officer 5, April 2011 - Munich
- 2. About Us Founded in 2007 Exclusive focus on premium publishers The only SSP run by publishing veterans Process 40+ billion transactions per month Offices in NYC, London, SF, Berlin & Toronto Consistently first to market with innovations in programmatic buying 1 Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved.
- 3. Circa 2000: The Ad Network Emerges Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. Direct Buys Direct Premium Ad Networks Bulk Buys Unsold 2
- 4. Faster internet connections More engaging websites (i.e. Facebook) More ways to go online (mobile, iPhones) 3 Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. Circa 2004: Unsold Inventory Begins To Spike + + = More unsold inventory for publishers to monetise
- 5. Circa 2005: The Ad Exchange Emerges Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. Direct Buys Direct Premium Ad Networks Bulk Buys Unsold 4
- 6. The Ad Network Daisy Chain 5 Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. 2% of Inventory Very Good CPM Network 1 Unsold Inventory 13% of Inventory OK CPM Network 2 85% of Inventory Poor CPM Network3 Sub-Optimal Revenues Extremely Labor-Intensive Difficult To Integrate & Test New Networks
- 7. Circa 2007: Enter The Ad Network Optimiser Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. Direct Premium Direct Buys Exchange $.98 300+ Ad Nets Network €.68 €.40 €.17 Bulk Buys €.30 Network $ 1.55 Network $ 3.40 Unsold €.50 €.70 Network €0.55 Network €1.15 6
- 8. Higher revenues, more online ad spend A central point of contact for programmatic demand More transparency and control Increased targeting capabilities 7 Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. What This Meant For Publishers
- 9. Late 2008: Media Buying Goes Real Time AgencyTradingDesks Agencies Ad Networks YieldOptimisers € € Demand Side Platforms OmnicomMedia € € € € € AEGIS Data Providers 8 Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved.
- 10. 9 Privileged & Confidential © 2009, AdMeld Inc. All Rights Reserved. Real Time Bidding simplified Graphic courtesy of
- 12. Price varies for each impression
- 13. Increased bid density per impression
- 14. DSPs set targeting criteria
- 16. Price per user or per segment
- 19. Floors
- 21. 13 Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved. January 2010 Global Spend on the Admeld Platform
- 22. 14 Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved. January 2011 Global Spend on the Admeld Platform
- 23. 15 Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved. RTB spend in 2010
- 24. Source: Forrester, Q4 2010 16 Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved. Forrester: RTB To More Than Double in 2011
- 25. 17 Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved. Auction Pricing Factors, December/January 2011, US
- 26. 18 Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved. RTB Activity Pacing, Q1 1 trillion bid requests 34 live bidders 1 Trillion Bid Requests!
- 27. "It comes down to having good ideas and good insights… brand matters but you have to have technology cause if you just have brand that's not enough anymore.” - Jeremy Steinberg, VP, Digital Sales & Business Development, FOX News "We'd be very happy to pay a lot for that inventory and be able to do it through the mechanics we're talking about” - Adam Cahill, EVP, Media Director, Hill Holiday “For us the initial hysteria over RTB with sales people thinking they're going to be replaced by blinking lights on a server had a lot to do with helping us understand what our business is.” - Peter Longo, CEO, IDG The opportunity that we can bring our own data, biddable transactions and pay fair value for them…it's a great evolution for the industry.” - Zack Rogers, SVP, Sales Strategy & Operations, CBS Interactive 19 Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved. What Are Publishers Really Saying?
- 28. 20 How the Acceptance of RTB Developed in The U.S.
- 30. Actionable data and the ability to target will accelerate growth
- 31. Publishers will see higher CPMs, more control and more transparency
- 33. Private Exchange
- 34. Media Buyers The majority of the infrastructure and algorithms we use for the online display are directly transferable to the mobile space. 300+ Ad Networks Tags PublisherInventory 35+ DSPs RTB Ad Servers, Ad Storage and Trafficking API/Tags 3rd Party Data 2011: Mobile Evolves Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Editor's Notes
- First SSP to run RTB, first and only private exchange, first mobile RTB, first block lists, first floor prices etc.
- Turn clock back to 2000- Ad networks help advertisers reach audiences at scale by cutting deals with lots of different publishers- In exchange for these services, ad networks take a “cut” of each buy.
- Ad Networks are cherry pickers. They don’t take every impression, so publishers have to work with lots of them to fill all their unsold.The race to the bottom.Daisy chain required tinkering daily by ad ops teams, tweaking code on pages to determine the optimal order. Worst part is that what’s optimal right now, won’t work in 5 minutes because of changes in demand and supplyWith all
- Determine the highest paying demand source with a single piece of code on the publisher page.
- We believe ad ops is a critical role in the organization, and with technologies can be freed up to tackle much more important problems than shifting around ad tags in daisy chains.
- For the past 10 years, ad networks have been the primary way advertisers reached users at large scale. For the most part, advertisers paid a flat rate to reach certain types of users through networks, understanding that a good portion of that spend would go to waste. In the past year or so, a new breed of buyers, Demand Side Platforms (DSPs) have emerged—which unlike ad networks, give advertisers the ability to bid individually on impressions (RTB) ad target them much more accurately. These companies leverage all kinds of data, including 3rd party data to decide which users are worth what. AdMeld is the publisher’s agent in this process, connecting them with all these source of demand and looking out for their best interests in terms of pricing, transparency, safety, etc Ad exchanges are primarily buy-side tools. They’re marketplaces in which the deck is stacked against the publisher because they’re optimised to drive ROI for the buyersAd servers are used by all players across the spectrum.Ad safety and verification tools are also used across the spectrum. by buyers to ensure their ads aren’t running near content that’s off-brand or inappropriate, and they’re used by publishers to ensure blocked or unwanted advertisers aren’t on their site, and the ads are free of malware.
- The second big
- Forrester ReportA lot of text, overlay of text , animation on bottom right that highlights 58% and make quote on top biggerWe are also now above 58%
- Add something below that shows what a trillion looks like, a hell of a lot of something happening, austin powers, star or galaxy
- Play Publisher Clip Here!http://www.youtube.com/watch?v=UegZQisrfW4Data and biddable premium inventory increases online ad spendSales people will not be replaced by technologyBrand matters but it’s not enough if you don’t have technologyAlgorithmic advertising has to be paid attention toAction is required by publishers
- Even in the US RTB needed some month to really get into mainstream. Now Germany is in a simliar situation than the US End of 2009 or Q2 2010. IN Q1 2011 the product features represent the reality: prioritized bidding to reflect volume buys or floor prices on user segments
- . The incumbents will not drive the revolution. The arguments for RTB are too convincing. Some companies will disappear. Data is like a superboost for development- The advantages for the publishers are clear
- 1.) Mobile Impressions are exploding (roughly 150 billion in US per month)2.) Mobile Ad Network ecosystem is rapidly changing3.) Mobile RTB will bring some much needed transparency, and price control to the market. Increasing Importance of MobileMobile Impressions are exploding (roughly 150 billion in US per month)Mobile Ad Network ecosystem is rapidly changingMobile audience dataLocation based advertisingMobile RTB will bring some much needed transparency, and price control to the market.