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Fresh Digital Group
                         The Case for Mobile RTB




We Strategize. We Execute. We Deliver. On All Screens.
We Strategize. We Execute. We Deliver. On All Screens.
Setting the Stage:
Digital Media Buying Industry Explained
The 3 standard media placements that all traffickers can provide retain pitfalls which we have
noted below. Please read on and allow us to suggest an alternative.

Direct-media-placement: Direct purchase and placement of your digital ad with a specific
publisher, portal or network.
     Pitfall: Direct-media placement often brings wasted costs; your audience moves through various websites
     across the web, by limiting your ads to specific sites, which carry a premium cost, you miss your moving
     target and often hit those who do not fit your desired user profile.


Brand-focused advertising: A concentrated media purchase across premium-sites, portals
and/or targeted publisher verticals.
     Pitfall: Your ROI is left up to the value of the placement, however, in most cases brand focused campaigns
     show low efficiency and medium-reach that fails to attain your optimal target audience and goals because
     they are too costly.


Direct-response (DR) advertising: A media purchase that leverages ad exchanges, content
networks and other cost effective media placement for the „„best bang for your buck‟‟.
     Pitfall: A good ROI relies on the optimizing skills of the media trafficker. In most cases however, DR campaigns
     lack brand focused opportunities and transparency.




                           We Strategize. We Execute. We Deliver. On All Screens.
What is Real Time Bidding?
How does it work?
Real Time Bidding (RTB) , is an advertising technology which enables Demand Side Partners (DSP) to EVALUATE each
advertising opportunity Individually, In Real Time and Before Deciding to Buy
Why is it better?
Scale & Profitability

Bulk Buying Campaigns through traditional ad networks (or non-algorithmic DSPs), purchase impressions in bulk, at a
fixed price point. This strategy is highly inefficient as the value of each individual impressions varies significantly.

Real Time Bidding enables platforms to bid with algorithms and calculate and then pay a unique price point per
impression. This technique allows you to increase campaign profitability by paying the appropriate price for undervalued
impressions. you can also increases campaign scale and quality, by bidding greater CPMs for high value, high
converting users.



Targeting & Retargeting
Bulk Buying Strategies have no means to target specific users. Real Time Bidding enables you to evaluate
every user and place a ZERO BID. When a targeted user appears, you can bid for that specific user. This
capability opens up new campaign opportunities for Demand Side Partner Advertisers like Retargeting.

Efficiency
Bulk Buying Campaigns rely on account managers and human decisions. These campaigns managers must
make a manifold of different campaigns with different targeting parameters.




                            We Strategize. We Execute. We Deliver. On All Screens.
Essential RTB Stats
•   RTB will account for 24.7% of all online video ad spend in the US in 2014,which
    translates to $1.14 billion


•   In 2012, US online video RTB spending reached $402 million, and for
    2013, Forrester projects spending to increase to $686 million.


•   RTB technology will support roughly 50% of the display ad volume in North
    America in five years.


•   By 2016, mobile ad spending will account for 22.6% of digital spend. An
    increasing share of these dollars will go to tablets and be purchased through RTB
    platforms.




                    We Strategize. We Execute. We Deliver. On All Screens.
                                                                                        5
The Mobile Advertiser‟s Dilemma
                      Some networks provide little or          Most ad networks are not
 $
     $
         $   $
                      no internal traffic, and instead         transparent and do not
 $ $
                 $




 $$ $                 rely on partnered traffic
                      providers
                                                               disclose their traffic sources.



                     Many traffic networks utilize              Many Ad Networks require
                     spammy or invasive ad unites               substantial campaign budget
                     like push notifications,                   commitments, billing on a
                     generating low value users                 CPM model, with the promise
                                                                of performance and fail to
                                                                deliver.
                     Other specialty networks                    Few ad networks utilize a data
                     incentivize user app download
             $       in exchange for virtual
                                                                 driven media buying strategy,
                                                                 instead gambling your
                     currencies or gift cards. Users             advertising dollars on trial and
                     are only interested in the                  error.
                     incentive, not in your product.




                      We Strategize. We Execute. We Deliver. On All Screens.
RTB Advantages
 RTB is more than just a cost saving method for mobile ad buying. It
 delivers unprecedented results in the following key areas:


• Targeting                           • Predictive
                                        Analysis


• Context                             • Retargeting             RETARGETING




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                              7
Targeting

Device                                Device model



                                     Network
OS
                                     (wifi vs carrier)


Smartphone                           Mobile
Vs                                   carrier
Tablet



             We Strategize. We Execute. We Deliver. On All Screens.
                                                                      8
Context
 Geolocation tools offer a granular level of contextual execution by actively
 differentiating between:

    •   Placement
    •   Mobile Site vs App
    •   Gender
    •   Country
    •   Interest (Fashion, Technology, Business…)
    •   Daily Location (home, work, college)

 By attacking these segments, RTB conveys the highest kind of
 contextualization, leading to the most personally relevant ad
 experience.




                    We Strategize. We Execute. We Deliver. On All Screens.
                                                                                9
Predictive
•   Predictive approaches can “predict” which user might respond to an ad
    based not on one specific piece of data, but rather on a wide range of
    different attributes. One of the best way to predict who will convert is to look
    at your existing converters.


•   For example, many converters might have all read the same very obscure
    four articles. This data isn‟t necessarily just noise. It might reveal a pattern
    that allows us to predict that other people who have read those same four
    obscure articles will be especially likely to convert. Those individuals can
    then be targeted in a real-time exchange, in the same way a brand might
    target someone who visits its site.


•   Predictive targeting is extremely important because it allows you to find new
    customers, users who might otherwise forever remain off your radar.




                     We Strategize. We Execute. We Deliver. On All Screens.
                                                                                       10
Retargeting                    RETARGETING




•   The goal of Retargeting is to turn potential customers into actual customers by
    bringing someone to your site who has shown an interest in your product or service


•   For example, Amazon can drop a unique cookie on your browser when you look at
    a pair of shoes on its site. If you don‟t buy the shoes, but then continue to surf the
    Web, a retargeting platform connected to an exchange using real-time bidding
    (RTB) can identify you (via your cookie) as someone who visited a specific page on
    Amazon. Amazon, meanwhile, will have already entered a bid that tells the ad
    exchange how much it‟s willing to pay to serve you an ad for the shoes you looked
    at. Amazon will likely bid high, because you are a valuable potential shoe buyer that
    is clearly in-market.


•   RTB Retargeting is a precious tool for capitalizing on second-guessing buyers who
    might need that extra push to complete the purchase. By ensuring that your ad is
    consistently viewed by the user, you will remain top of mind and guarantee a higher
    chance of action.




                      We Strategize. We Execute. We Deliver. On All Screens.
                                                                                             11
FDG‟s Top RTB Predictions
 •   Programmatic continues to grow in the U.S., but we will also see explosive growth in international markets
     such as Asia and Latin America.


 •   Increasing amounts of premium inventory will move to private exchanges. Publishers will begin to overcome
     some of their reluctance to partner with exchanges, although many will remain wary. For advertisers, this
     means access to more premium inventory more efficiently.


 •   Video RTB will go mainstream. It will be all about the robust ecosystem of third parties innovating in the
     video space, as well as strong CPMs that continue to rise.


 •   Third-party data will continue to grow as we see more volume and higher-quality data sources making a
     dizzying array of targeting options available on virtually all platforms. This includes search data, social data,
     site level data and the ability to layer data on top of data for added insights and advanced targeting.


 •   Finally, there will be a growing movement to real-time reporting. Next day will no longer be enough;
     marketers will demand real-time or near-real-time consoles. This will continue to drive the technology
     conversation around big data, big data processing and inform strategic media buying decisions.




                          We Strategize. We Execute. We Deliver. On All Screens.
                                                                                                                         12
Fresh Digital Group
                               111 John St 2nd FL
                             New York, NY 10038
                        www. freshdigitalgroup.com




Fresh Digital Group

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The Case for Mobile RTB

  • 1. Fresh Digital Group The Case for Mobile RTB We Strategize. We Execute. We Deliver. On All Screens.
  • 2. We Strategize. We Execute. We Deliver. On All Screens.
  • 3. Setting the Stage: Digital Media Buying Industry Explained The 3 standard media placements that all traffickers can provide retain pitfalls which we have noted below. Please read on and allow us to suggest an alternative. Direct-media-placement: Direct purchase and placement of your digital ad with a specific publisher, portal or network. Pitfall: Direct-media placement often brings wasted costs; your audience moves through various websites across the web, by limiting your ads to specific sites, which carry a premium cost, you miss your moving target and often hit those who do not fit your desired user profile. Brand-focused advertising: A concentrated media purchase across premium-sites, portals and/or targeted publisher verticals. Pitfall: Your ROI is left up to the value of the placement, however, in most cases brand focused campaigns show low efficiency and medium-reach that fails to attain your optimal target audience and goals because they are too costly. Direct-response (DR) advertising: A media purchase that leverages ad exchanges, content networks and other cost effective media placement for the „„best bang for your buck‟‟. Pitfall: A good ROI relies on the optimizing skills of the media trafficker. In most cases however, DR campaigns lack brand focused opportunities and transparency. We Strategize. We Execute. We Deliver. On All Screens.
  • 4. What is Real Time Bidding? How does it work? Real Time Bidding (RTB) , is an advertising technology which enables Demand Side Partners (DSP) to EVALUATE each advertising opportunity Individually, In Real Time and Before Deciding to Buy Why is it better? Scale & Profitability 
Bulk Buying Campaigns through traditional ad networks (or non-algorithmic DSPs), purchase impressions in bulk, at a fixed price point. This strategy is highly inefficient as the value of each individual impressions varies significantly. 
Real Time Bidding enables platforms to bid with algorithms and calculate and then pay a unique price point per impression. This technique allows you to increase campaign profitability by paying the appropriate price for undervalued impressions. you can also increases campaign scale and quality, by bidding greater CPMs for high value, high converting users. Targeting & Retargeting Bulk Buying Strategies have no means to target specific users. Real Time Bidding enables you to evaluate every user and place a ZERO BID. When a targeted user appears, you can bid for that specific user. This capability opens up new campaign opportunities for Demand Side Partner Advertisers like Retargeting. Efficiency Bulk Buying Campaigns rely on account managers and human decisions. These campaigns managers must make a manifold of different campaigns with different targeting parameters. We Strategize. We Execute. We Deliver. On All Screens.
  • 5. Essential RTB Stats • RTB will account for 24.7% of all online video ad spend in the US in 2014,which translates to $1.14 billion • In 2012, US online video RTB spending reached $402 million, and for 2013, Forrester projects spending to increase to $686 million. • RTB technology will support roughly 50% of the display ad volume in North America in five years. • By 2016, mobile ad spending will account for 22.6% of digital spend. An increasing share of these dollars will go to tablets and be purchased through RTB platforms. We Strategize. We Execute. We Deliver. On All Screens. 5
  • 6. The Mobile Advertiser‟s Dilemma Some networks provide little or Most ad networks are not $ $ $ $ no internal traffic, and instead transparent and do not $ $ $ $$ $ rely on partnered traffic providers disclose their traffic sources. Many traffic networks utilize Many Ad Networks require spammy or invasive ad unites substantial campaign budget like push notifications, commitments, billing on a generating low value users CPM model, with the promise of performance and fail to deliver. Other specialty networks Few ad networks utilize a data incentivize user app download $ in exchange for virtual driven media buying strategy, instead gambling your currencies or gift cards. Users advertising dollars on trial and are only interested in the error. incentive, not in your product. We Strategize. We Execute. We Deliver. On All Screens.
  • 7. RTB Advantages RTB is more than just a cost saving method for mobile ad buying. It delivers unprecedented results in the following key areas: • Targeting • Predictive Analysis • Context • Retargeting RETARGETING We Strategize. We Execute. We Deliver. On All Screens. 7
  • 8. Targeting Device Device model Network OS (wifi vs carrier) Smartphone Mobile Vs carrier Tablet We Strategize. We Execute. We Deliver. On All Screens. 8
  • 9. Context Geolocation tools offer a granular level of contextual execution by actively differentiating between: • Placement • Mobile Site vs App • Gender • Country • Interest (Fashion, Technology, Business…) • Daily Location (home, work, college) By attacking these segments, RTB conveys the highest kind of contextualization, leading to the most personally relevant ad experience. We Strategize. We Execute. We Deliver. On All Screens. 9
  • 10. Predictive • Predictive approaches can “predict” which user might respond to an ad based not on one specific piece of data, but rather on a wide range of different attributes. One of the best way to predict who will convert is to look at your existing converters. • For example, many converters might have all read the same very obscure four articles. This data isn‟t necessarily just noise. It might reveal a pattern that allows us to predict that other people who have read those same four obscure articles will be especially likely to convert. Those individuals can then be targeted in a real-time exchange, in the same way a brand might target someone who visits its site. • Predictive targeting is extremely important because it allows you to find new customers, users who might otherwise forever remain off your radar. We Strategize. We Execute. We Deliver. On All Screens. 10
  • 11. Retargeting RETARGETING • The goal of Retargeting is to turn potential customers into actual customers by bringing someone to your site who has shown an interest in your product or service • For example, Amazon can drop a unique cookie on your browser when you look at a pair of shoes on its site. If you don‟t buy the shoes, but then continue to surf the Web, a retargeting platform connected to an exchange using real-time bidding (RTB) can identify you (via your cookie) as someone who visited a specific page on Amazon. Amazon, meanwhile, will have already entered a bid that tells the ad exchange how much it‟s willing to pay to serve you an ad for the shoes you looked at. Amazon will likely bid high, because you are a valuable potential shoe buyer that is clearly in-market. • RTB Retargeting is a precious tool for capitalizing on second-guessing buyers who might need that extra push to complete the purchase. By ensuring that your ad is consistently viewed by the user, you will remain top of mind and guarantee a higher chance of action. We Strategize. We Execute. We Deliver. On All Screens. 11
  • 12. FDG‟s Top RTB Predictions • Programmatic continues to grow in the U.S., but we will also see explosive growth in international markets such as Asia and Latin America. • Increasing amounts of premium inventory will move to private exchanges. Publishers will begin to overcome some of their reluctance to partner with exchanges, although many will remain wary. For advertisers, this means access to more premium inventory more efficiently. • Video RTB will go mainstream. It will be all about the robust ecosystem of third parties innovating in the video space, as well as strong CPMs that continue to rise. • Third-party data will continue to grow as we see more volume and higher-quality data sources making a dizzying array of targeting options available on virtually all platforms. This includes search data, social data, site level data and the ability to layer data on top of data for added insights and advanced targeting. • Finally, there will be a growing movement to real-time reporting. Next day will no longer be enough; marketers will demand real-time or near-real-time consoles. This will continue to drive the technology conversation around big data, big data processing and inform strategic media buying decisions. We Strategize. We Execute. We Deliver. On All Screens. 12
  • 13. Fresh Digital Group 111 John St 2nd FL New York, NY 10038 www. freshdigitalgroup.com Fresh Digital Group