Across Media and Device
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Presentation by Rick Abell, VP of publisher delivery for Exponential, at admonsters European Forum on monetizing advertising inventory in display, video and mobile.
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Across Media and Device
- 2. Across Media and Device Monetizing advertising inventory in display, video and mobile Rick Abell VP, Global Publisher Development Exponential www.exponential.com 2
- 3. ABOUT EXPONENTIAL • Founded in 2001, over 10 years of industry experience • Strategic focus on premium advertisers and premium inventory – allows us to garner great CPMs for publisher partners • Served 88 of the top 100 global advertising brands in 2011 • Brand engagement experiences • Display advertising solutions via display inventory • In-app Rich Media mobile • In-stream video solutions advertising Advertising Intelligence 3
- 4. GLOBAL REACH AND PRESENCE: OFFICES IN 25 COUNTRIES AND COUNTING Significant worldwide reach of over 550 MM unique users per month through local websites and non-resident traffic – making us the 2nd largest advertising provider in the WORLD! *Source: comScore Media Metrix Dec ’11, Nielsen Nov’11 and Tribal Fusion Ad Server, Feb’11, Advertising Intelligence 4
- 5. Across Media and Device Monetizing advertising inventory in display, video and mobile www.exponential.com 5
- 6. Yuck! Advertising Intelligence 6
- 7. The Inventory Monetization Challenge • Publishers often juggle multiple partners to effectively monetize their local display inventory • As they grow, they then need to solve their display needs across multiple geographies, dramatically increasing the number of potential partners and complexity for the publisher • At this point, the publisher may need to build out larger and larger operations and trafficking teams • Then once you add in video and mobile needs, the problem can quickly become unmanageable Advertising Intelligence 7
- 8. A simpler world • Publishers would love to see consolidation • Opportunity exists for those with end to end solutions across devices and geographies • Players in the space either acquiring, being acquired, or will fade completely Advertising Intelligence 8
- 9. Large opportunity to pull more budget to digital Advertising Intelligence 9
- 10. Display Performance by Channel Advertising Intelligence 10
- 11. How Frequency Impacts Performance Advertising Intelligence 11
- 12. Organic or Inorganic? Advertising Intelligence 12
- 13. Ack! Advertising Intelligence 13
- 14. Keep it Clean Advertising Intelligence 14
- 15. Premium Ad Units Advertising Intelligence 15
- 16. Capture Your Fair Share • Discuss opportunities available with your partners • Get Listed! • Understand your ad partners scheduling and prioritization Advertising Intelligence 16
- 17. Is your adserver REALLY working for you? Advertising Intelligence 17
- 18. Average Rates • Your adserver has its own ad network – Ad Network A • You work with one other partner – Ad Network B • Ad Network B is on a revenue-share structure, earns an average CPM of $2 • Ad Network A will “only take the impression first if they can beat the $2 rate” • Problem is, that $2 rate is an AVERAGE Advertising Intelligence 18
- 19. Ad Prioritization Advertising Intelligence 19
- 20. Why to not adjust for Fill Rate • Your Adserver has its own ad network – Ad Network A. They earn $1.50 CPM. • Your other partner, Ad Network B, earns $2 CPM, but fills only 50% of the impressions you send • Scenario 1: You value them at $2. They earn $2 on 50% of your imps, and Ad Network A takes the other 50% at $1.50 o Your CPM = $1.75 • Scenario 2: You value them at $2 * 50% = $1. Ad Network A will take all of your impressions at $1.50 o Your CPM = $1.50! Advertising Intelligence 20
- 21. Display Advertising Tips • Understand where your ad partners get their demand from • Keep ad quality and user experience in mind • Look for true partnerships Advertising Intelligence 21
- 22. Video Advertising Tips • Location, location, location • Keep your users top of mind • Understand your ad partners’ demand levels Advertising Intelligence 22
- 23. Mobile Advertising Tips • Mobile Web or App? • Understand your mediation partner’s capabilities • Focus on user experience! Advertising Intelligence 23
- 24. Think Globally! Advertising Intelligence 24
- 25. Thank You Rick Abell VP, Global Publisher Development Exponential Rick.abell@exponential.com www.exponential.com 25
Editor's Notes
- -Technology and innovation generally positive developments, but not if they are scaring away the advertisers and preventing budget from shifting to online world -Some of these developments have yet to prove that they are adding value to the space, or that they have sustainable business models. If a company is running on a 10% cost + model, can they survive at those margins? What happens if funding runs out before they get acquired?
- We’re all on the same team when it comes to improving advertiser performance, enhancing brand experience, and increasing accountability if it means advertisers can spend more money online and hit their back-end metrics -How can we work together to make the digital world more enticing for brands? -Some of it happening over time, but there are some things we can do to clear up misconceptions, weed out excessive low-performing supply, and increasing effectiveness through ad selection and placement
- -needs to be cleaned up Notes: -”Performance” determined by combination of CPM and fillrate -Index level, baseline of 1 – Business category close to average -What does this mean for publishers? Can’t change the purpose and direction of their site -One opportunity is to segment your site: if you have automotive content on your sports site for example, segmenting your tags with your 3 rd party partners can give a lift -Also some other steps you can take to improve performance and stand out from the others in your category - An example of how this could work: if you have a gaming site, performance in your vertical generally low. If you place an emphasis on ad selection and placement, you will stand out and get good share of ad dollars targeted to the vertical
- Not surprising to see the two are highly correlated -High frequency categories show lower performance -Gaming sees very high frequencies. some publishers may use tactics like rotating ads as users play games, or placing more ads per page -Some publishers attempt to solve this by utilizing multiple networks or SSPs to try to tap into more sources of demand -not long-term sustainable solution, as premium ad dollars will not flow to sources that rely heavily on this type of inventory
- -Numerous ways to grow site traffic: word of mouth, featured in articles, SEO, social marketing -All forms of traffic will bring in different types of users of differing value -some will be more qualified than others, may stay on site longer, engage with content more -important for publishers to understand exactly how users are getting to the site and understanding value of different marketing efforts -some publishers become further removed from the effort by employing an SEM firm, working with traffic exchange partners, etc -even more important then for publisher to ask questions of their partners, track activity and quality of users -if it seems too good to be true, it usually is -many underhanded methods exist, can result in damage to publisher’s rep, ad revenue, search rankings, etc
- Ad overload -Beyond assaulting your user’s eyes and damaging your site traffic potential, too many ads can have additional adverse effects: --hurt your ad partner’s performance – could get you optimized out of rotation --could even get you removed if too many ads is against partner ad policy --damage your site brand --hurt your search ranking due to Google Panda updates
- -Clean pages result in better performance and better overall user experience
- Industry movement towards larger ad sizes, more engaging ad experiences, viewable impressions – all designed to capture audience’s attention and have a memorable impact on the user -Is your ad partner leveraging some of the newer, more exciting ad types available? On display, we’re talking about things like Filmstrips, Sidekicks, Pushdowns, Branded Wraps. On video, polite ad formats, leave-behind units, branded overlays. In mobile, still developing, but engaging ad types, interactive experiences, mobile video. These ad types accomplish the task of being noticeable without being intrusive, and premium brands are quickly getting onboard. And all of these come at premium CPMs, so want to ensure your site is getting its fair share of these ad dollars.
- talk to your current partners about high impact units and custom opportunities Make sure your site traffic numbers are accurately reflected in Comscore, Nielsen, Quantcast. Additionally for mobile, getting listed amongst top apps in given category will open up partners to you. Some partners have site traffic minimums. Other direct agencies/advertisers will look at rankings by category to determine ad dollar allocation Will touch on this more in a minute, but how your partners optimize may directly affect what ads are available to you. For example, some ad partners may only show premium ads on your site if placed in early session scheduling
- If your adserver has its own demand option (ad network, exchange, etc), then chances are they are taking your best impressions off the top – are they compensating you fairly? -Say your adserver has its own ad network, we’ll call it Ad Network A. They will tell you to plug your other ad partner, Ad Network B, in at the average rate they are earning for you, say $2. Ad Network A will only fill your impression if they can beat that $2 rate, offering you only upside, right? -Not necessarily true, especially if you work with Ad Network B on a revshare. Ad Net B may earn $2 across all imps they fill for you, but they may earn $3-4 on your best impressions. If Ad Net A is picking them off the top but only paying you $2.50, you’re losing out. -It’s fine to use an adserver that has its own demand option, but 2 important pieces of advice: 1. Understand how the scheduling is done, and 2. Either set things up fairly, or test multiple set-ups and look at OVERALL revenue. -If you switch adservers and see a drop from your partners across the board, it may be related to the adserver’s scheduling methodologies, impression discrepancies, or serving lagtime
- -Say your adserver has its own ad network, we’ll call it Ad Network A. They will tell you to plug your other ad partner, Ad Network B, in at the average rate they are earning for you, say $2. Ad Network A will only fill your impression if they can beat that $2 rate, offering you only upside, right? -Not necessarily true, especially if you work with Ad Network B on a revshare. Ad Net B may earn $2 across all imps they fill for you, but they may earn $3-4 on your best impressions. If Ad Net A is picking them off the top but only paying you $2.50, you’re losing out. -It’s fine to use an adserver that has its own demand option, but 2 important pieces of advice: 1. Understand how the scheduling is done, and 2. Either set things up fairly, or test multiple set-ups and look at OVERALL revenue. -If you switch adservers and see a drop from your partners across the board, it may be related to the adserver’s scheduling methodologies, impression discrepancies, or serving lagtime
- Ensure your set-up doesn’t create uneven playing fields – or if you must, then test test test! -When valuing your ad partners in your adserver, do not factor in fillrate! Some ad providers out there would have you believe you should discount the CPMs to adjust for fill, especially if they have their own ad network/demand. Let’s return to our previous example. Your adserver also has its own ad network, Ad Network A, and we’ll say they earn $1.5- CPM. Let’s say your other Ad Network B is earning a $2 CPM for you but only fills 50% of the impressions you send. You should still value them at $2. Otherwise if you value them at $2*50% = $1, that gives Ad Network A a leg up, and reduces your overall revenue. If you plug in Ad Net B at $2 and they fill 50%, Ad Net A fills the other 50% at $1.50. Your site CPM = $1.75. If you instead do as they suggest and plug Ad Net B in at $1, then Ad Net A will fill it all at $1.50. Your site CPM = $1.50. Lost $$$!!
- Ensure your set-up doesn’t create uneven playing fields – or if you must, then test test test! -When valuing your ad partners in your adserver, do not factor in fillrate! Some ad providers out there would have you believe you should discount the CPMs to adjust for fill, especially if they have their own ad network/demand. Let’s return to our previous example. Your adserver also has its own ad network, Ad Network A, and we’ll say they earn $1.5- CPM. Let’s say your other Ad Network B is earning a $2 CPM for you but only fills 50% of the impressions you send. You should still value them at $2. Otherwise if you value them at $2*50% = $1, that gives Ad Network A a leg up, and reduces your overall revenue. If you plug in Ad Net B at $2 and they fill 50%, Ad Net A fills the other 50% at $1.50. Your site CPM = $1.75. If you instead do as they suggest and plug Ad Net B in at $1, then Ad Net A will fill it all at $1.50. Your site CPM = $1.50. Lost $$$!!
- Do they have direct relationships with top agencies and recognizable advertiser brands? Or does the majority of their demand come from other 3 rd party sources, or them reselling your inventory? Are they respected in the industry and have a track record of success? On the topic of where their demand comes from, what do the ads look like? Are they clean, professional, and brands you would want your site associated with? We’ve all seen the belly fat-type ads. Those work for some publishers, and some are more willing to accept those ad types outside of their local market. Publisher just needs to understand the impact of ad types on their users and decide what tradeoffs they’re willing to make. Or if they want to ensure brand-safe environments, they should be able to provide one themselves. They can then focus on more premium ad partners within the advertising landscape. How are your deals structured? Pure CPM plays offer guaranteed rates and predictability, but incentives are not aligned, so that is one downside. Often it can be advantageous to look for one or two long-term partnerships on revshare or modified structure that aligns incentives, then couple that with additional CPM partners. And for those true partnerships, what type of customer service will you get? Will you have a dedicated rep, or be handed off to an anonymous helpdesk that may or may not respond?
- Larger video player, placed above the fold, not on autoplay – these 3 things will ensure you maximize available dollars from both direct and 3 rd party sources. A lot of backlash of late on autoplay, so be sure to avoid that altogether VPAID compliance will maximize the number of different video ad units available to you. We have found that users are much more receptive to less intrusive ad types such as polite pre-roll and branded overlays/leave-behinds. For example, polite pre-roll decreases abandonment by 36% when compared to standard pre-rolls. Giving the user the choice makes them feel empowered, and many will watch the full ad anyways. Higher user retention and lower drop-off rates always a good thing. Some ad partners have very sporadic demand and will chase you down in Q4 but then disappear completely in Q1 and Q2. Look for established players with good growth trajectory that can keep the ad dollars rolling in year-round. Also understanding their compatibility with your ad player and video format are important. Corollary: do they monetize mobile video?
- Much debate about mobile web vs in-app. Some pubs work to build out both, but can be difficult if working with limited resources. Merits of both, but we see a lot of value of in-app experience. Different environment for the user, can tailor things much more to how you want the user engaging with your content and brand, and users are much more focused on the experience. As a result, much more enticing for the brand advertiser, and where we see the bulk of the ad dollars on mobile currently going. What is their compatibility with other ad networks and ad providers? Do they have SDKs developed for all the major demand sources? Do they require frequent app updates of your users (thus annoying them)? Along those lines, what type of experience do your partners’ ads create for your users? Are they the deceptive or junky type? Do they take users outside of your app, distracting them from your own experience?
- Important to think about this across display, video and mobile. You may be saying now that your site traffic is very heavily-skewed towards one region, or that you don’t have the bandwidth to look outside of your current market. -As you can see though, internet traffic growth is coming on very strong outside of the “mature markets”, and with current internet penetration clocking in at 10,20, 30% in some of these emerging markets, this trend will heat up even more over the next several years -Not saying you need to contract with local partners in each of these markets, but it’s worth looking at how you’re monetizing your non-local inventory today. Ask your current ad partners about their international footprint to see if they can handle a good portion of this for you. Sometimes exclusive non-local representation can provide a nice revenue boost while minimizing publisher headache