DPS: OpenX: Mobile Real Time Bidding: The Emerging Multi-Screen Landscape
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As a foundational ad serving platform, OpenX sits at the intersection of mobile and traditional display. OpenX customers are watching their audience move to mobile devices with increasing velocity. With a focus on mobile RTB, this session will offer unique insight into the a cast of players that have emerged and the opportunities and challenges mobile creates for traditional desktop publishers. Presenter: Mike Downey, vp, mobile solutions, OpenX @OpenX
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DPS: OpenX: Mobile Real Time Bidding: The Emerging Multi-Screen Landscape
- 1. Mobile Real Time Bidding (RTB) The Emerging Multi-Screen Landscape Mike Downey, Vice President, Mobile Solutions
- 2. A Quick Look Back The Roots of Real Time Bidding
- 3. RTB Explodes Predicted to reach $6.8 billion by 2017* • 140 billion impressions per month • 450 million users per month • 30% increase in domains since 2011 Source: Parks Associates; OpenX
- 4. Where Supply Meets Demand
- 6. RTB: The Missing Link to Mobile
- 7. The Future of the Internet is Mobile Sources: Boston Consulting Group, Mary Meeker, Kleiner Perkins, Morgan Stanley Research, Berg Insight
- 8. Dollars Follow Consumers to Mobile Source: BI Intelligence
- 9. Consumers Drive More Mobile Traffic Sources: Mary Meeker, Kleiner Perkins, companies
- 10. The Mobile Ad Exchange Ecosystem
- 11. Mobile is Different • Hire mobile DNA • Distribute ownership/accountability throughout the organization • Develop internal advocacy
- 12. Stage I of Mobile Readiness 90% of Internet is not mobile optimized • No mobile implementation – Denial – “Please make it stop” • Solutions Adhesion ad units Mobile content feed
- 13. Stage II of Mobile Readiness Mobile business is defined • Send mobile inventory to an exchange • Use an ad server that is mobile enabled • App and Mobile Web
- 14. Stage III of Mobile Readiness Single Platform Utopia
- 15. Mobile Real Time Bidding (RTB) The Emerging Multi-Screen Landscape Mike Downey, Vice President, Mobile Solutions
- 16. The OpenX Complete Mobile Solution Ad Sell direct across all formats Server (Display, mobile, email, video) Ad RTB increases non-guaranteed Exchange CPMs with full controls Yield All buyers compete in Optimizer the ad server to max yields
- 17. RTB Spending Explodes Predicted to reach $6.8 billion by 2017* Sources: Parks Associates; Google (DoubleClick Ad Exchange spend via RTB), 1/10 – 5/11; OpenX, week of 7/2/12.
Editor's Notes
- I’d like to thank to Digiday for giving me the opportunity to speak with you today My name Mike Downey and I am the VP of Mobile Solutions Today I would like to share how are dealing with the mobilization of the world at OpenX. For those of you that are not familiar with us OpenX is - Full Stack, Integrated Enterprise Ad Server, We operate 2 or 3 rd larges tAd Exchange (depending on Month), and Yield Optimization technology called OpenX Lift We exist to help publishers make more money from advertising Historically We are not a Mobile company Since Real Time Bidding is core to OX we will share the impact of Mobile from an RTB perspective
- Lets start by taking a quick look back Roots of RTB Are in Paid Search Core Dev and Exec Team from OpenX were at GoTo durring the invention of Keyword based Auctions and the paid search model They witnessed the extraordinary impact auctions have on advertising markets first hand Google came along and Changed the Game by Borrowing and Improving on the model After Yahoo Acquistion and as time passed OpenX CEO Tim Cadogan had risen to the sr. Ranks of Yahoo Mgmt and was looking for his next move Some of you might know him…Tall bald genglemen with a disarming British accent He realized Tech Had matured to a point where auctions could be applied to the massive pools of inventory in the highly fragmented world of display ads as evidenced by Right Media He decided to get the Band Back Together and ride the RTB Wave
- And Ride the RTB Wave we have along with others Grown form 25 to 250 Employees in 3 years Why? In short because buyers see real benefits from it Google RTB white paper says advertisers claim to almost double CTR from .09 to 1.5% A survey by Digiday showed that 47% Media Buyers and Agencies plan to shift additonal budget to Digital because of the beneifts of RTB Think about that . Marketers are shifting share from traditional mediums because the intelligence inherent in RTB
- Lets take a quick look at how it looks for OpenX and is similar for the other exchanges based their product offering Sellers with Inventory to Sell Data contained the browser cookie is the Oxygen of the RTB ecosystem And DSPs have created the unique differentiating technology to evaluate the data and make bids according to client value in Real Time But if it works so well why not just Rinse Later Repeat Create some Mobie Ad Units and the let RTB party rage?
- And It’ s a party! Our DSPs partners bid in real time (under 100ms) for every Single Impression DSPs as Brains Value Prop based on Data contained in Cookie Media Buyer Fantasy If funtional why not rinse lather repeat for Mobile? Exhanges like OpenX operate a marketplace where our DSPs partners compete in real time to drive real value for their agencies and brand clients. Why? A recent study showed that advertisers see a 50% increase in performance from the targeting available via RTB. The DSPs are the brains of RTB ecosystem and have developed proprietatary technology that reads data contained in the browser cookie to find users and make bids on their clients behalf. In short, it works. One would think. Hey this works in Display why don’t we just add some new ad unit sizes and apply the same model that works in Display and apply it to mobile and let the party continue.
- Unfortunately it is not so simple. You have no idea how I wish it were. The entire RTB value proposition of DSPs in the desktop world is based on targeting against user data that is contained in a browser cookie Here is the rub....there are no cookies in mobile It sounds simple but if we as an industry are going to unleash the historically proven power of auctions on a mobile …RTB almost needs needs to be reinvented from scratch.
- Why is this so imperative? We have all seen the numbers But we don’ t need to see the number to grock where the world is going. Look around at your kids, on the subway, wherever. It is clear how human beings are spending their time The Point is that mobile is not just a channel or a sideshow- Mobile Becomes the business. By 2015 Mobile connection will dwarf Fixed
- And Dollars Follow Eyballs..they have to In fact, BI Intelligence predicts that ad revenue in the mobile market will reach close to $7 billion by 2017.
- More than half the traffic on Twitter, Pandora and Facebook is now mobile and rising even higher
- Exciting Part Creativity and Innovation Supply Data Fingerprinting- Cookie Replacement therapy Location Data Demand Incumbants- Leverage Scale- Might need to acauire Insurgents- Unique Value Props- Hyper Local – Not all Lat Long is equal Tapad- Multie Sceen GradientX- using RTB mobile performacie Mobile Networks- Have current demand- Reactive around RTB
- What to do -Mobile is Different If you don’t have it- Hire Mobile DNA Dedicated Full Time Resources Find the evangalists and squaky wheels that will force Sr. Mgmt to pay attention and give mobile the love it needs to win
- We see a continuum of Mobile Readiness at OpenX This is stage 1 This is Denial- I don’t want to think about it- Make it go away I can’t possibly deal with the Mobile Goat Rodeo AdHesion Ad Units- Mobile Rising Stars 90% of web is in this bucket (Brafton)
- Most of the people in the room are in this bucket Mobile Web Sites- Might have an App Starting to grapple with mobile monetization Mobile Business Defined and Resources agaings
- Aspiration Utopion Vision of AD Tech and Pub Imagine 1single Ad Server Direct Sales Selling Multi Device Campaigns Cross Device Frequency Capping Sequencing and Stroryboarding No Discrepancy and Minimal Latency Robust Premium Multi Screen RTB This is the Vision of the future that OpenX is building against and making great progress
- Regardless of where you are in the stages of mobile readiness we would love to talk. OpenX is very open as a culture and as a technology platform. We have found that companies that seem competitive can end up being you strongest allies and partners Lets Collaborate to move our industry forward and rally around the mathematical certainty of mobile that is upon us. Thank you ! Mike D - Out
- So..now back to reality Whether you are in need of a multi screen ad server, a robust multi format exchange, or an independent partner to help formulate your mobile strategy and prepare for the future. We are here and would love to talk. Cheers Out Mike D. We have a robust 3 screen ad server and SDK- Ideal for app developers and publishers that are starting to move into a direct selling world A vibrant advertising exchange with growing pools of mobile demand And we are building our optimization solution for mobile called “Lift” that will be available later this year
- And ride the wave we have along with others Google RTB OpenX Growth Why- it Works