Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks

DMEXCO Night Talks – The Rise of RTBBen Barokas, Founder & Chief Revenue Officer
5, April 2011 - Munich

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.

Circa 2000: The Ad Network Emerges
Direct Buys
Direct
Premium
Ad Networks
Bulk Buys
Unsold
2

Faster internet connections
More engaging websites (i.e. Facebook)
More ways to go online (mobile, iPhones)
3
Circa 2004: Unsold Inventory Begins To Spike
+
+
=
More unsold inventory for publishers to monetise

Circa 2005: The Ad Exchange Emerges
Direct Buys
Direct
Premium
Ad Networks
Bulk Buys
Unsold
4

The Ad Network Daisy Chain
5
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

Circa 2007: Enter The Ad Network Optimiser
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

Higher revenues, more online ad spend
A central point of contact for programmatic demand
More transparency and control
Increased targeting capabilities
7
What This Meant For Publishers

Late 2008: Media Buying Goes Real Time
AgencyTradingDesks
Agencies
Ad Networks
YieldOptimisers
€
€
Demand Side Platforms
OmnicomMedia
€
€
€
€
€
AEGIS
Data Providers
8

9
Real Time Bidding simplified
Graphic courtesy of

Real Time Optimization
Advertiser gets booked impressions delivered
Fixed price
Fixed volume
Targeting criteria defined by publisher
No interaction between supply and demand sides
10
Real Time Optimization vs. Real Time Bidding
Real Time Bidding
Advertiser sees every single impression
Price varies for each impression
Increased bid density per impression
DSPs set targeting criteria
Advertiser, URL and CPM are exchanged in less than 100ms

For Publishers
Full Control
Block list
Floor Pricing
Full Transparency
Advertiser
Bid price
Win ratio
3rd party data provides insight on user base
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Advantages of RTB: Both Parties Win
For Advertiser
Full Flexibility
Price per user or per segment
Granular Targeting
Data infused bidding
Floors
Improved efficiency through programmatic buying

Factors Driving Increases in Ad Spends
58%
39%
31%

13
Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
January 2010
Global Spend on the Admeld Platform

14
January 2011
Global Spend on the Admeld Platform

15
RTB spend in 2010

Source: Forrester, Q4 2010
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Forrester: RTB To More Than Double in 2011

17
Auction Pricing Factors, December/January 2011, US

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RTB Activity Pacing, Q1
1 trillion bid requests
34 live bidders
1 Trillion Bid Requests!

"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
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What Are Publishers Really Saying?

20
How the Acceptance of RTB Developed in The U.S.

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RTB Continues to Evolve the Marketplace
Successful companies will be those who bring the most amount of efficiency to the transaction process – intermediaries will lose ground
Actionable data and the ability to target will accelerate growth
Publishers will see higher CPMs, more control and more transparency
The industry is no longer one sided – the evolution of buyers, caused sellers to evolve, causing buyers to further evolve

Thank You!Follow @admeldVisit admeld.com

Private Exchange

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

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Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks

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Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks — Presentation Transcript