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What is Real-Time Bidding?
(RTB)
Paul Gill

© Search Laboratory Ltd 2013. All rights reserved.

Leeds T: +44 113 212 1211
...
Problems To Solve
Tested display advertising with no return
Limited by generic search market
Made direct website advertisi...
Real-Time Bidding
What Is Real-Time Bidding?
Advertising through:

Display banners
- Static
- Rich media

Videos
What Is Real-Time Bidding?
Targeting the user visiting a website not just the
website itself
Place the right ad in front o...
How Is RTB Defined?
RTB is:
“real-time, impression by impression based decision
making”

Campaigns make decision to bid on...
How Do We Recognise A User?
3rd Party browsing data from multiple providers
-

User browses 3rd parties inventory

-

Thei...
Traditional Display Vs. RTB
Only pay for the valuable impressions:
£1.65

£1.20
£0.64

£1.08

£10 CPM

£3.12

Vs.

£0.88

...
The Benefits Of RTB
Improving account performance:
– Huge reduction in wasted costs
– CPA / ROI never before possible with...
How It Works
Ad Exchanges
Facilitates buying and
selling of impressions in an
auction
Allow access to larger
inventory

RTB
Traditional...
Who We Work With
Demand Side Platforms (DSP)
Access to multiple, statistically qualified, 3rd
party data providers
Unrival...
Double Click Platform
Double Click Platform
Double Click Platform
RTB: Bidding Process
User Information

Bids sent to auction

Bid request

Highest bidder advertises on
websites impression...
Complete RTB Strategy
Complete RTB Strategy
Keyword
Targeting

Audience
Targeting

Remarketing
Campaign Types
Conversion Focused Campaigns
Clients with direct response goals/ interactions

Optimise towards conversion rate/ cost per
...
A Scientific Approach To Branding
Bidding based on key demographics stats, useful for
other channels
Traditionally reporte...
Typical Timeline For Success
Strategic,
engaged
setup

Month 1
Broad demographics
Launch remarketing
Build audience lists
Month 2
Gather data
Key converting audiences / websites
Improve lists
Month 3+
Increase investment in what works
Advanced testing
Publisher negotiations

continues
Next Steps
Consider your business’ current challenges

Look at effectiveness of other channels:
– Traditional display
– Of...
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What is Real-Time Bidding (RTB)?

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Paul Gill, Head of RTB, presented on what Real-Time Bidding is and how to implement a successful campaign at our Real-Time Bidding Best Practice Seminar.

Published in: Marketing
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What is Real-Time Bidding (RTB)?

  1. 1. What is Real-Time Bidding? (RTB) Paul Gill © Search Laboratory Ltd 2013. All rights reserved. Leeds T: +44 113 212 1211 London T: +44 207 147 9980
  2. 2. Problems To Solve Tested display advertising with no return Limited by generic search market Made direct website advertising purchases Invested in TV or offline with unclear uplift
  3. 3. Real-Time Bidding
  4. 4. What Is Real-Time Bidding? Advertising through: Display banners - Static - Rich media Videos
  5. 5. What Is Real-Time Bidding? Targeting the user visiting a website not just the website itself Place the right ad in front of the right person at the right time
  6. 6. How Is RTB Defined? RTB is: “real-time, impression by impression based decision making” Campaigns make decision to bid on an impression in real-time
  7. 7. How Do We Recognise A User? 3rd Party browsing data from multiple providers - User browses 3rd parties inventory - Their actions are recorded - Segmented into user demographics Day: Tuesday, Time 8:03am Highest annual income Gender: Male Location: Leeds 45-55 year old Interests: luxury cars, investing Post-graduate education More than two children
  8. 8. Traditional Display Vs. RTB Only pay for the valuable impressions: £1.65 £1.20 £0.64 £1.08 £10 CPM £3.12 Vs. £0.88 £0.23 £2.12 £0.77 Purchasing in bulk even though each impression has different value to campaign £1.65 £3.12 Purchase impressions based on their individual worth and only those which are valuable
  9. 9. The Benefits Of RTB Improving account performance: – Huge reduction in wasted costs – CPA / ROI never before possible with display – Unrivalled reporting and insight Access to huge volumes of data - Results only possible with statistical optimisation
  10. 10. How It Works
  11. 11. Ad Exchanges Facilitates buying and selling of impressions in an auction Allow access to larger inventory RTB Traditional Display
  12. 12. Who We Work With Demand Side Platforms (DSP) Access to multiple, statistically qualified, 3rd party data providers Unrivalled reporting insight Live across 40 countries: - scale quickly across markets - gain insights for specific geographies (e.g. Yandex, Russia specific exchange)
  13. 13. Double Click Platform
  14. 14. Double Click Platform
  15. 15. Double Click Platform
  16. 16. RTB: Bidding Process User Information Bids sent to auction Bid request Highest bidder advertises on websites impression Competitor User Website visited Ad Exchanges Bid: £0.00039 Search Laboratory Bid: £0.00042 Competitor Bid: £0.00034 Competitor Bid: £0.00012
  17. 17. Complete RTB Strategy
  18. 18. Complete RTB Strategy Keyword Targeting Audience Targeting Remarketing
  19. 19. Campaign Types
  20. 20. Conversion Focused Campaigns Clients with direct response goals/ interactions Optimise towards conversion rate/ cost per conversion/ ROI Statistically led decision making
  21. 21. A Scientific Approach To Branding Bidding based on key demographics stats, useful for other channels Traditionally reported through surveys Integrate with analytics for reporting: - PPC, SEO, Analytics/ Social metrics uplift Brand Protection - Ad position, brand safe inventory - User generated content
  22. 22. Typical Timeline For Success Strategic, engaged setup Month 1 Broad demographics Launch remarketing Build audience lists
  23. 23. Month 2 Gather data Key converting audiences / websites Improve lists
  24. 24. Month 3+ Increase investment in what works Advanced testing Publisher negotiations continues
  25. 25. Next Steps Consider your business’ current challenges Look at effectiveness of other channels: – Traditional display – Offline/ print media – TV – Traditional remarketing Take into account the recommended min. monthly spend (£10k) Question how much you really know about your target audience

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