Display Advertising 2.0 - Arrival of Real Time Bidding
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Display Advertising 2.0 - Arrival of Real Time Bidding

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Talk by satish kadu, komli @Ad tech, Delhi, 2012

Talk by satish kadu, komli @Ad tech, Delhi, 2012

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  • 1. Display 2.0 – Arrival of Real Time Bidding Satish Kadu VP & Business Head (ATOM), Komli Media Ad:tech, 2012
  • 2. Story-Line for Today1. Display 1.02. Display 2.0 – Real Time Bidding as the Game Changer3. RTB and Indian Online Advertising Industry4. Atom – RTB enabled Ad Platform from Komli Media5. Feedback, Questions, Comments2
  • 3. Display 1.0 = दखावा ?High on Promise,But Low on Delivery… 3 KOMLI CONFIDENTIAL
  • 4. Display 1.0 = दखावा ?One Price For All ?  Differential product pricing based on value is the norm everywhere.  Then why one flat CPM rate for all impressions? (that lowers ROI).  CPM should be based on ad impression’s likelihood to serve campaign objective – based on TG fit, intent, context etc.  Every impression is unique! Why not “pay per impression” instead of CPM!4
  • 5. Display 1.0 = दखावा ?One Price For Inefficient All ? Targeting!  Buying without Audience Targeting  Looking for a needle in the haystack…  Audience “data” lying in various silos and in different forms. Not useful for targeting at scale.5
  • 6. Display 1.0 = दखावा ?One Price For Inefficient Lack of Scale All ? Targeting!  Operating across disparate ad platforms leads to  Audience Duplication  Lack of scale for re-targeting  Loss of cross channel attribution6
  • 7. Display 1.0 = दखावा ?One Price For Inefficient Low Lack of Scale All ? Targeting! Transparency  “Half of my budget gets wasted… I dont know which half”  Blind/Opaque Buy: Lack of transparency on pricing, audience reached, inventory quality.  Inability to capture customer insight and act upon it at real-time to get maximum benefit7
  • 8. Display2.0… Real Time BiddingJustice Delivered… ताबडतोब 8 KOMLI CONFIDENTIAL
  • 9. What is Real Time Bidding? Massive Scale Display Media Auctioned on a per Impression BasisRTB is an automated process which allows media buyers to evaluate, bid on and purchase ad inventory on a per impression basis9
  • 10. Display 2.0 Value Chain with RTBPublishers Advertisers Ad NetworksPublishers Ad Exchange/ RTB SSP Enabled Agencies Ad Exchange/ AdPublishers SSP Platform Ad Networks Ad NetworksPublishers 10
  • 11. How the RTB magic works? User browses a web page Entire process is Optimized ad Bids called for completed delivered in less than RTB auction 50ms! Winning bid accepted11
  • 12. Optimum Bid-Value Decision using Predictive Models Probability of RTB Bid Success Campaign Target Value (Desired Action – X e.g. Click, Lead (e.g. CPC, CPA) Conversion)Machine Learning models analyzing Terabytes of data queried in real time CPC Goal Rs. 10Scenario 1: Scenario 2:Impression happening in rush hour Impression happening at leisureClick probability = 10% Click probability = 80%Fair Value = Rs. 1 Fair Value = Rs. 8Bid = Rs. 1 Bid = Rs. 10 12
  • 13. RTB – Fundamental Shift in Display Advertising Before RTB Buy only impressions that matter and pay exactly what it’s worth! After RTB 13
  • 14. RTB – Fundamental Shift in Display Advertising In real-time, machine driven bidding! (process completes in less than 50ms) 14
  • 15. RTB – Fundamental Shift in Display Advertising Reach precise audience! Leveraging audience data and likelihood to convert in real time.Right ad to the right user at the right time! 15
  • 16. RTB – Fundamental Shift in Display Advertising Same impression has different value for 20 30 15 45 33 different advertisers! 20 30 15 45 33 16
  • 17. A New Way to Target Consumers From ‘Buying Websites’ Drastically improved targeting and campaign ROI ! To ‘Buying Audience’ 17
  • 18. Key Benefits to Advertisers Precision Greater Optimize Targeting Transparency and Campaign in Control Real-Time Get actionable customer Increase Delivery, Reduceinsights at impression level Wastage, Enhance ROI18
  • 19. Key Benefits to Publishers Revenue Maximization – Every single impression auctioned to the highest bidder Unleash the Value of your Audience More relevant ad experience for the user19
  • 20. Real Time Bidding is Exploding RTB Share of Non-Guaranteed Ad Spend (US) 60% 50% 50% $5B+ 40% 30% 20% 15% 10% 5% 0% 1.5% 0% 2008 2009 2010 2011 2012+ 2015E Source: PubMatic white paper Science of Search Advertising coming to Display20
  • 21. RTB is Super-HeroBut दे स म चलेगा या? 21 KOMLI CONFIDENTIAL
  • 22. Drivers for RTB Adoption in India Granular audience data is required for success of RTB22
  • 23. Drivers for RTB Adoption in India Threshold scale of demand & supply required for efficient price discovery23
  • 24. Drivers for RTB Adoption in India Standardization of rich media ads will drive greater demand and auction efficiency24
  • 25. Drivers for RTB Adoption in India Prediction Quality in Programmatic Buying (low win volume vs. winner’s curse)25
  • 26. ATOM – India’s 1st RTB enabled ad platform 26 KOMLI CONFIDENTIAL
  • 27. ATOM 2.0 – Reach Precise Audience at Scale Access Massive Inventory Target Specific AudiencesIncrease Transparency & Control Improve Delivery & Optimization 27
  • 28. RTB – A Case Study from ATOM 79% 71%Advertiser Lift in Conversion Rate Lift in Click Through Rate An e-commerce Advertiser A Software Product AdvertiserPublisher 70% Lift in eCPM An Entertainment Publisher 28
  • 29. Summing Up… 29 KOMLI CONFIDENTIAL
  • 30. RTB - Driving force behind Display 2.0 Ability to reach precise audience at scale. Auction-based buying reflects true market pricing. Data-driven bid optimization dramatically improves campaign performance. If you are interested in buying on RTB, mail us at atom@komli.com30
  • 31. RTB is surely the next super-hit Block Buster!Come… Fall in Love… All Over Again… With Display Advertising!  31
  • 32. Questions, Comments, Feedback, Discussions Thank you!32