Online Ad Campaigns arecomplicated.The price of putting together anonline campaign can be 30%more expensive in time andeffort than a print campaignIt is far easier for an advertiser tofind 1/2m people who areinterested in buying a car at thismoment on TV than online.Real Time Bidding is a technologythat grew in response to thesetwo problems.There had to be a way of bringingadvertisers and publisherstogether in a more painless way.
2007 was the pivotal year. It was theyear that created liquidityAd Exchanges had arrived. Thesenew technologies created hugepools of available Inventory.This created the scale that advertiserswere asking for. Kerching!!Apr 2007 – Yahoo buys Right Media.May 2007 – Google buys DC.Aug 2007 – MSN buys AdECNThe DoubleClick logoShows this industry changeIt now had two greenblobs coming together. Thisrepresents the coming togetherof advertiser and publisher.5 years later it is actuallyhappening. A Bit.
Most DSP’s started in 2007. This was because advertisers needed access to theNew liquidity in inventory. They provided single buying points for the exchanges.DSP’s were faster and more automated.
THE PLAN COMESTOGETHER.With large pools ofinventory and buyersable to get hold of it.The time was right for atechnology paradigmshift. RTB was themissing piece.Exchanges began tobuild real time biddingAPI’s.This meant that a workflow was developing toallow data drivendisplay advertisingstrategies.Display competes withsearch budgets again.
2009 -2010 saw a surge in support for RTB from the supply side.It began a wave of growth with DSP’s, Ad networks, Agency Trading Desks all eager to takeadvantage. It has grown exponentially since.
RTB has taken off for onesimple reason:Buyers see real benefits fromit.CPM rates are lower than withTraditional ad networks.Data allows increase in CTR’s.The reach is bigger than anyad network could ever supply.50bn ad impressions a monthin UK alone.It has solved our originalproblem of efficiency andscale.Really??
But what IS RTB?2 layers.• A real-time bidding API.• A real-time bidder.The API is the pipe.A server-sideconnection to aninventory source.It ANNOUNCES theeach impressionsThe Bidder is the‘Brain’. This EVALUATESeach impression onbehalf of theadvertiser.Advertisers can bidappropriately for theimpressions they reallywant.
Jargon:Real-time buying:Acquiring inventory on demand.Audience buying:Acquiring inventory based onaudience data.Auction-based buying:Acquiring inventory by placingwinning bids in an auction.Data-driven display:Acquiring inventory based on data.Impression-by-impression buying:Acquiring inventory by evaluatingeach impression as itbecomes available.Bid optimization:Employing techniques to ensure thatbids to acquire inventory are placedin such a manner that goals can bereached optimally.
There is a lot of hype.Here is the famousand intimidating lumamap.There is a lot of VCmoney around thisarea.VC money means PR.The emptiest vesselmakes the loudestnoise when banged.Aegis Trading Desks.Xaxis Trading Desks.(40% of Europeanbuying).25-50 campaigns amonth each.
Actually it’s a bit simpler and bit more like this. In fact you could split it into buy side, sell side.
Demand Side PlatformsThese are agency and advertiser buying platforms.Allows impressions based decision makingAllows agencies to bring in advertiser data for re-messagingOptimises reach and Frequency across multiple inventory sourcesSampling algorythms find success for agenciesPlatform pays the publishers. No IO’s.
The Turn DSP looks like a traditional adserver in terms of targetingbut it is focussed on audience and the making the most efficient spend use of client spend.
What type of data can you bid on?Ad slot parameters: visibility (above or below the fold),sizeexcluded creative attributesexcluded advertiserURLsallowed vendor or ad technology.• Geo parameters: country, region, metro, city.• Content parameters: site URL, site language, seller network, vertical or category.• User parameters: browser, operating system, anonymous cookie (hashed), cookie age.
Trading DesksAgency buying/trading desks are Agency buying desks As some agencies don’tspecialized entities of represent the liaison between have core RTB technology, theymedia buying agencies focusing advertiser or parent agency and may partner with a third-partyon media trading and RTB. Each the platforms used to facilitate company such as a Managed Servicedesk represents an agency. RTB. or an DSP itself .
Xaxis the the Trading Desk for GroupM.In depth study GroupM is owned by WPP. Mindshare, Mediacom, MEC, Maxus Uses Appnexus. BUT the MIG ( WPP’s tech arm 247/Realmedia – has built it’s own bidder called Zapp Trader 4. Has sales teams across Europe that sells the trading desk concept to each advertiser. Xaxis make 40-53% margin on the media. Previously this went to an ad network. Margin is a function in Appnexus. All European trafficking done from London.
The Politics of Ad Exchanges and RTB ContentIn the same way that publishers wouldn’t put all inventory onto RTB, so Ad Exchangesdo not either. They keep the best stuff to sell themselves.Google Adx – will not have all of Youtube inventory. Youtube sell premium direct.Yahoo will not sell all it’s inventory on the Right Media Exchange.Right Media Exchange will not share any inventory with Appnexus.Right Media demand that big agencies have a direct seat on their exchange.Appnexus has exclusive access to MSN inventory because they own 30% of Appnexus.There is a 10% discount on MSN inventory if bought through Appnexus.
Cliché Alert. – Data is the new oilFirst Party Data – the cookies attached to users whohave been to an advertisers website. (e.g Abandonedcarts.)Second Party Data – the data an agency might generatethrough it’s own adserving. e.g. Creating a cookie poolof all users that they know have been on a specific typeof content 3 times in a week. (Xaxis)Third Party Data – Bought in cookie lists from theproviders named above.Contextual Data - Contextual data provided by a 3rdParty.
Geek Alert - Where do data providers get their data ?They buy it from publishers, comparison sites, online shopsetc. They pay between 20p and 50p per thousand cookies.They sell around £1.00.DMP’s Data management platforms allow publishersinvolved in media buying and selling to manage proprietarydata, facilitate the usage of third-party data or portaudience data to other platforms. As capabilities of DSPsextend to integrate other media such as mobile, video andsocial,providers of these emerging types of data andanalytics/DMPs will become an increasingly important partof the display advertising landscape.Anecdotal evidence suggest that in Europe – 3rd PartyData Partners are not working. Only contextual and 2ndParty Data is working consistently. This is not true of theUS.
DMP’s and PublishersA DMP (Data Management Platform) aggregates all campaignanalytics (mediasources, creative, placements&audiences) intoone hub.Having all of this data in one platforms implifies audiencesegmentation and cross-channel media planning.House all client audience data in one place for de-duplication,scalability,and insights. Allow partners to login and utilize data.Grant pre-defined sharing and security parameters.Empower teams to buy audiences with minimal waste andscalable insights. Allow you to see what kind of audience datayou are buying and how it performs.
Supply Side Platforms Help Publishers manage their unsold inventory. They help maximise yield. Used by most premium publishers. They protect Data Leakage Admeld and Rubicon = 65% of all RTB impressions in the UK. Admeld owned by Google. Is in process of being Googlified. Rubicon has largest footprint in UK. The facilitate private exchange relationships between agencies groups and publisher groups. Including special data relationships.
Supply Side Platforms The problem with this model for the publisher is that with distressed inventory – It lumps really valuable users with those that have no value. RTB facilitates the right user, right time and Right place. Which through an auction Process unlocks the true value of each cookie. Increased ECPM across the board. Anecdote. – The 4th best sales person at the whole of Future Publishing is in fact the trafficker who manages the SSP relationships.
CLASSIC VERSUS NEW SSP’s CLASSIC SSP’s Focussed on connecting publishers to new advertisers. Managing the logistical nightmare of dealing with multiple ad networks Managing the cannibalisation of direct sales by indirect sales efforts Managing data leakage – cookie stealing. NEW SSP’s Allows Publishers possibility of using own cookie data to buy extra impressions from RTB.
In Depth Study AND• A&Nmedia - sells unsold inventory on behalf of the biggest online newspaper in the world Daily Mail.• It also sells Northcliffe Press Regional sites.• It has access to 3bn ad impressions a month.• It is sophisticated enough to have it’s own data strategy and understands the value of it’s own cookies.• It retargets valuable Daily Mail audiences on open RTB It uses AppNexus as a DMP For it’s own cookies. It also buys on RTB contextually using the AppNexus Apps.
RTB Trading Desks splitsthe classic purchasingfunnel into 2 distinctcampaign types. PROSPECTING Contextual 2nd Party Data 3rd Party Data Look-alike RE-MESSAGING 1st Party Data
The biggest single problem on RTB…. The graphic above is taken from Grapeshot and it shows the volume of impressions That it blocks on a daily basis on channels built to represent the old IASH standard Brand safety category. This is for one single day.
An example of some the dodgy URLs inAppnexus Brands can be routinely found on these sites, due to badly set up re-messaging campaigns. Brand Safety is big business.
Brand Safety aka – content verification toolsCV products block or report, in real time, the serving of an online advertisement ontodestinations that have been defined as inappropriate to the campaign.This refers to any words that are deemed by the advertiser to be unsuitable for a campaign,including brand conflicting content.These tools mostly send blank ads when they detect a negative page. In RTB this wastes a lotof money. Only Grapeshot and Double verify can now block sites at a bidding level.A serious issue for all these guys is - Lack of source level transparency is primarily anunfortunate side effect of inventory “daisy-chaining” (or inter-network reselling)
In Depth StudyOn the Luma Map Appnexus is onIt’s own. Why is this?AppNexus is more of a platform than aTraditional adserver. More Oracle than DoubleclickIt has the most Open API and a vast team to help developers create tools for advertisers.This is called the App Market place.It is a great SSP and DMP for those publishers confident with data.It is a great DSP for those who can develop their own reporting apps.It is all things to all People.