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Solving the Remnant Inventory Problem
Ben Barokas, Co-Founder and CRO

                                  August 18th 2009
About Us


         Founded in October 2007              Select AdMeld Customers

         Focus on premium
          pu...
Introduction


          How does discretionary optimization work?
                   – Create your ideal network portfol...
Creating Your Ideal Network Portfolio


                        Analyze your site




        Optimize your               ...
Diversification is Key
                                           High
                                            Fill


...
Optimizing A Single Impression


                                            Network A
                                   ...
Getting to True Value




              Discrepancy                  Frequency       Fill




                            ...
Discrepancy


          Many sources: internet latency, ad server latency,
           user moving away from page to quick...
Factoring in Discrepancy

              Start                        Discrepancy       eCPM

             $1.50           ...
Frequency


     Early views worth most

     CPM is an average
      across multiple views

     Many networks shift t...
Factoring in Frequency

   Discrepancy                             Frequency         eCPM
                                ...
Fill Rates and Pass backs


       Highest paying tags
        usually have low fill

       Managing fill is
        es...
Calculating Dynamic Daisy Chains




                                           12
© 2009, AdMeld Inc. All Rights Reserved.
Factoring in Fill




                                           13
© 2009, AdMeld Inc. All Rights Reserved.
True Value




Privileged & Confidential
                                           14
© 2009, AdMeld Inc. All Rights Rese...
The Results


                                           Network B        Network D
            Optimized
             Cho...
Reality Check

          Doing this for large, premium publishers means:
                   – Calculating 5000 chain comb...
Managing Business Rules


                                                Complete visibility into each ad,
              ...
Real Time Bidding

          A Shorter Road to True Value
           With RTB, buyers bid dynamically for each impression...
It’s All About Data




Privileged & Confidential
                                           19
© 2009, AdMeld Inc. All Ri...
Thank You
            July 16th 2009
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Solving The Remnant Inventory Problem: AdMonsters 2009 Presentation

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Solving the Remnant Inventory Problem
By Ben Barokas

As an industry, it’s taken us more than 15 years to get a grip on dealing with remnant ad inventory, but I think there’s finally a light at the end of the tunnel. Over the past two or three years in particular, the R&D that’s gone toward solving this problem has begun to drive substantive results for publishers, boosting eCPMs and easing the burden on their perpetually overworked ad ops teams. We’ve moved far beyond the static daisy chain into real time optimization, but how does it all work, and what are we doing to stay ahead of the problem?



At its core, optimization is about “peeling off the layers” to reveal a clearer picture of what every impression is worth. Doing this at scale means accounting for a laundry list of ever-shifting variables (discrepancy, frequency, fill, user, content, geo) across countless sources of ad demand—and the problem isn’t getting any easier. The good news is, we’re on the cusp of another phase of innovation. Between Real Time Bidding (RTB) and a host of data infusion techniques, premium publishers in particular are poised to reap gains proportionate to the high quality of their content and audiences.

Published in: Technology, Business
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Solving The Remnant Inventory Problem: AdMonsters 2009 Presentation

  1. 1. Solving the Remnant Inventory Problem Ben Barokas, Co-Founder and CRO August 18th 2009
  2. 2. About Us  Founded in October 2007 Select AdMeld Customers  Focus on premium publishers  80+ customers  Manages more than 300 million ad impressions daily  Raised $15M in venture funding from Spark Capital and Foundry Group 1 © 2009, AdMeld Inc. All Rights Reserved.
  3. 3. Introduction  How does discretionary optimization work? – Create your ideal network portfolio – Calculate the true value of every impression – Deliver it with scalability and quality of experience  What does it do for you? – Boost your revenues – Save you time, lower your costs – Help protect your brand  Looking forward – RTB and Data 2 © 2009, AdMeld Inc. All Rights Reserved.
  4. 4. Creating Your Ideal Network Portfolio Analyze your site Optimize your Understand portfolio network inventory Integrate and Find the right mix prioritize 3
  5. 5. Diversification is Key High Fill Low High CPM CPM Low Fill 4 © 2009, AdMeld Inc. All Rights Reserved.
  6. 6. Optimizing A Single Impression Network A Rev Share $1.50 Network B Rev Share $1.20 Network C Real Time Bid $1.10 Network D Fixed 3x24 $1.00 Network E Rev Share $0.50 © 2009, AdMeld Inc. All Rights Reserved. 5
  7. 7. Getting to True Value Discrepancy Frequency Fill 6 © 2009, AdMeld Inc. All Rights Reserved.
  8. 8. Discrepancy  Many sources: internet latency, ad server latency, user moving away from page to quickly  Without discrepancy management, optimization is ineffective  Achieved 20% revenue lift at IAC through discrepancy management alone 7 © 2009, AdMeld Inc. All Rights Reserved.
  9. 9. Factoring in Discrepancy Start Discrepancy eCPM $1.50 40% $0.90 Network A Rev Share Network B $1.20 10% $1.08 Rev Share Network C $1.10 0% $1.10 Real Time Bid Network D $1.00 15% $0.85 Fixed 3x24 Network E $0.50 10% $0.45 Rev Share 8 © 2009, AdMeld Inc. All Rights Reserved.
  10. 10. Frequency  Early views worth most  CPM is an average across multiple views  Many networks shift to CPC or CPA at higher frequencies  Previously was done with multiple tags from networks which carries a lot of overhead for premium publishers 9 © 2009, AdMeld Inc. All Rights Reserved.
  11. 11. Factoring in Frequency Discrepancy Frequency eCPM Network A $0.90 60% $0.54 Rev Share Network B $1.08 120% $1.30 Rev Share Network C $1.10 100% $1.10 Real Time Bid Network D $0.85 100% $0.85 Fixed 3x24 Network E $0.45 100% $0.45 Rev Share 10 © 2009, AdMeld Inc. All Rights Reserved.
  12. 12. Fill Rates and Pass backs  Highest paying tags usually have low fill  Managing fill is essential to calculating revenue  Daisy chains ensure an ad is shown  What used to be done manually once a week, now done dynamically for every impression 11 © 2009, AdMeld Inc. All Rights Reserved.
  13. 13. Calculating Dynamic Daisy Chains 12 © 2009, AdMeld Inc. All Rights Reserved.
  14. 14. Factoring in Fill 13 © 2009, AdMeld Inc. All Rights Reserved.
  15. 15. True Value Privileged & Confidential 14 © 2009, AdMeld Inc. All Rights Reserved.
  16. 16. The Results Network B Network D Optimized Choice Rev Share Fixed 3x24 $1.16 $1.20 $1.00 Network A Network E “Common” Choice Rev Share Rev Share $0.47 $1.50 $0.50 150% Revenue Lift Over 100,000,000 impressions, an additional $70,000 15 © 2009, AdMeld Inc. All Rights Reserved.
  17. 17. Reality Check  Doing this for large, premium publishers means: – Calculating 5000 chain combinations per impression, in real time, millions of times a day – Accounting for geo, frequency caps and network latency – Maximizing revenue during traffic spikes – Backing it up with consultative services and expertise – Executing against publisher business rules 16 © 2009, AdMeld Inc. All Rights Reserved.
  18. 18. Managing Business Rules Complete visibility into each ad, without leaving your website. • See the network that served the ad • Report or disable problem ads • View pricing, fill, targeting info, etc. 17 © 2009, AdMeld Inc. All Rights Reserved.
  19. 19. Real Time Bidding  A Shorter Road to True Value With RTB, buyers bid dynamically for each impression instead of setting blind rates (futures) beforehand  Less Risk, Less Friction With less risk, buyers confidently spend more at higher rates, and pubs will have more access to demand sources  RTB To Ramp Up in 2010 As adoption grows, so will efficiency and performance  A Big Win for Premium Publishers The most valuable inventory lies at the nexus of content, context and audience. Premium publishers have all three. Privileged & Confidential 18 © 2009, AdMeld Inc. All Rights Reserved.
  20. 20. It’s All About Data Privileged & Confidential 19 © 2009, AdMeld Inc. All Rights Reserved.
  21. 21. Thank You July 16th 2009

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