The Arrival of Real-Time Bidding, hosted by IAB, Google, & Forrester
The Arrival of Real-TimeBiddingScott Spencer, Director of ProductManagement, GoogleJoanna O’Connell, Senior Analyst,Forrester Research Inc.Michael Greene, Analyst, ForresterResearch Inc.June 15, 2011
“Pipe” “Brain”A real-time bidding API A real-time bidder Real-time bidding requires two distinct layers of technology 2
… the “pipe” announces details about the ad space and audience to eligible real-time bidders: For every Ad slotimpression… Geo Content User 3
…the “pipe” is responsible for protecting publishers: To facilitate Malware Buyertransactions… protection blocking Data Anonymity protection Preferred Technology buyer access blocking 4
… the “brain” evaluates each individual impression to answer: In 100 Do you want to showmilliseconds… an ad here? At what price? With what message? 5
…the “brain” will base these decisions on:To find audience Data at scale… Targeting Optimization 6
Ad exchanges Ad networks Sell-side platforms Demand-side (SSPs) platforms (DSPs) Trading desks Other media buying intermediaries“Pipes” “Brains”Have a RTB API Have a real-time bidder Real-time bidding is supported by a vibrant ecosystem of companies 7
Real-Time Bidding has Grown Rapidly % of DoubleClick Ad Exchange Spend via RTB 100% 80% 68% 64% 67% 66% 67% 60% 56% 58% 52% 46% 48% 37% 37% 39% 40% 26% 22% 20% 15% 8% 0% Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11Source: DoubleClick Ad Exchange, January 2010 to May 2011, figures do not include DoubleClick Ad Exchange inventory won by AdWords 35
RTB Trends: More Formats, More Deal TypesMultiple Formats Display Rich Media Video MobileFlexible Deal Types Auction Direct Deals Anonymous Branded Private Bidded Fixed Price, Pre-Auction 36
Role of RTB in Selling Display Inventory Non-Guaranteed Guaranteed Buyer Access RelationshipsOpen Auction “Traditional” Yield “Private” Auction Direct Exchange Direct Premium Management SalesRTB demand with Boost direct Leverage brand The power of the Total customization controls network yield + RTB handshake, the and service efficiency of RTB The Foundation: Brand, Data and User Protection 37
For Publishers RTB is a Perceived Risk,Requires Mitigating Controls Top RTB Requirements Malware Protection – 50% Data Protection – 48% Preferred Buyer Access – 37% 48 % Buyer Blocking – 37% Anonymity – 26% Of publishers will shift inventory to an RTB platform in 2011 Technology Blocking – 10%Source: Digiday and Google, Real-Time DisplayAdvertising State of the Industry, February 2011, total 38survey respondents n=371, digital publisherrespondents n=101, question respondents n=33
An exciting time forDisplay Advertising $200B“Display advertising can be a $200B industry in less than 10 years.”Eric Schmidt,Executive Chairman, GoogleAdWeek $15.9B in 2014 $10.2B in 2010 39Source: eMarketer, Nov. 2010
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