Display 2.0 – Arrival of Real Time Bidding Satish Kadu VP & Business Head (ATOM), Komli Media      Ad:tech, 2012
Story-Line for Today1. Display 1.02. Display 2.0 – Real Time Bidding as the Game Changer3. RTB and Indian Online Advertisi...
Display 1.0 = दखावा ?High on Promise,But Low on Delivery…  3                    KOMLI CONFIDENTIAL
Display 1.0 = दखावा ?One Price For    All ?                 Differential product pricing based on                  value ...
Display 1.0 = दखावा ?One Price For   Inefficient    All ?       Targeting!                         Buying without Audienc...
Display 1.0 = दखावा ?One Price For   Inefficient                                    Lack of Scale    All ?       Targeting...
Display 1.0 = दखावा ?One Price For   Inefficient                           Low                                 Lack of Sca...
Display2.0… Real Time BiddingJustice Delivered… ताबडतोब   8                   KOMLI CONFIDENTIAL
What is Real Time Bidding?    Massive Scale Display Media    Auctioned on a per Impression BasisRTB is an automated proces...
Display 2.0 Value Chain with RTBPublishers                                                      Advertisers             Ad...
How the RTB magic works?                    User browses a                      web page                          Entire  ...
Optimum Bid-Value Decision using Predictive Models                              Probability of      RTB Bid               ...
RTB – Fundamental Shift in Display Advertising                   Before RTB                                 Buy only impre...
RTB – Fundamental Shift in Display Advertising                           In real-time, machine                            ...
RTB – Fundamental Shift in Display Advertising                                                Reach precise audience!     ...
RTB – Fundamental Shift in Display Advertising                           Same impression has                            di...
A New Way to Target Consumers  From ‘Buying Websites’                           Drastically improved                      ...
Key Benefits to Advertisers     Precision              Greater             Optimize     Targeting         Transparency and...
Key Benefits to Publishers              Revenue Maximization – Every single              impression auctioned to the highe...
Real Time Bidding is Exploding              RTB Share of Non-Guaranteed Ad Spend (US)     60%                             ...
RTB is Super-HeroBut दे स म चलेगा   या?   21                    KOMLI CONFIDENTIAL
Drivers for RTB Adoption in India                         Granular audience data                         is required for s...
Drivers for RTB Adoption in India                            Threshold scale of                             demand & suppl...
Drivers for RTB Adoption in India                          Standardization of rich                           media ads wil...
Drivers for RTB Adoption in India                           Prediction Quality in                           Programmatic B...
ATOM – India’s 1st RTB enabled ad platform  26            KOMLI CONFIDENTIAL
ATOM 2.0 – Reach Precise Audience at Scale       Access Massive Inventory   Target Specific AudiencesIncrease Transparency...
RTB – A Case Study from ATOM                         79%                                           71%Advertiser          ...
Summing Up… 29           KOMLI CONFIDENTIAL
RTB - Driving force behind Display 2.0                       Ability to reach precise audience at scale.                  ...
RTB is surely the next super-hit Block Buster!Come… Fall in Love… All Over Again… With Display Advertising!  31
Questions, Comments, Feedback, Discussions                   Thank you!32
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Display Advertising 2.0 - Arrival of Real Time Bidding

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Talk by satish kadu, komli @Ad tech, Delhi, 2012

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Display Advertising 2.0 - Arrival of Real Time Bidding

  1. 1. Display 2.0 – Arrival of Real Time Bidding Satish Kadu VP & Business Head (ATOM), Komli Media Ad:tech, 2012
  2. 2. Story-Line for Today1. Display 1.02. Display 2.0 – Real Time Bidding as the Game Changer3. RTB and Indian Online Advertising Industry4. Atom – RTB enabled Ad Platform from Komli Media5. Feedback, Questions, Comments2
  3. 3. Display 1.0 = दखावा ?High on Promise,But Low on Delivery… 3 KOMLI CONFIDENTIAL
  4. 4. Display 1.0 = दखावा ?One Price For All ?  Differential product pricing based on value is the norm everywhere.  Then why one flat CPM rate for all impressions? (that lowers ROI).  CPM should be based on ad impression’s likelihood to serve campaign objective – based on TG fit, intent, context etc.  Every impression is unique! Why not “pay per impression” instead of CPM!4
  5. 5. Display 1.0 = दखावा ?One Price For Inefficient All ? Targeting!  Buying without Audience Targeting  Looking for a needle in the haystack…  Audience “data” lying in various silos and in different forms. Not useful for targeting at scale.5
  6. 6. Display 1.0 = दखावा ?One Price For Inefficient Lack of Scale All ? Targeting!  Operating across disparate ad platforms leads to  Audience Duplication  Lack of scale for re-targeting  Loss of cross channel attribution6
  7. 7. Display 1.0 = दखावा ?One Price For Inefficient Low Lack of Scale All ? Targeting! Transparency  “Half of my budget gets wasted… I dont know which half”  Blind/Opaque Buy: Lack of transparency on pricing, audience reached, inventory quality.  Inability to capture customer insight and act upon it at real-time to get maximum benefit7
  8. 8. Display2.0… Real Time BiddingJustice Delivered… ताबडतोब 8 KOMLI CONFIDENTIAL
  9. 9. What is Real Time Bidding? Massive Scale Display Media Auctioned on a per Impression BasisRTB is an automated process which allows media buyers to evaluate, bid on and purchase ad inventory on a per impression basis9
  10. 10. Display 2.0 Value Chain with RTBPublishers Advertisers Ad NetworksPublishers Ad Exchange/ RTB SSP Enabled Agencies Ad Exchange/ AdPublishers SSP Platform Ad Networks Ad NetworksPublishers 10
  11. 11. How the RTB magic works? User browses a web page Entire process is Optimized ad Bids called for completed delivered in less than RTB auction 50ms! Winning bid accepted11
  12. 12. Optimum Bid-Value Decision using Predictive Models Probability of RTB Bid Success Campaign Target Value (Desired Action – X e.g. Click, Lead (e.g. CPC, CPA) Conversion)Machine Learning models analyzing Terabytes of data queried in real time CPC Goal Rs. 10Scenario 1: Scenario 2:Impression happening in rush hour Impression happening at leisureClick probability = 10% Click probability = 80%Fair Value = Rs. 1 Fair Value = Rs. 8Bid = Rs. 1 Bid = Rs. 10 12
  13. 13. RTB – Fundamental Shift in Display Advertising Before RTB Buy only impressions that matter and pay exactly what it’s worth! After RTB 13
  14. 14. RTB – Fundamental Shift in Display Advertising In real-time, machine driven bidding! (process completes in less than 50ms) 14
  15. 15. RTB – Fundamental Shift in Display Advertising Reach precise audience! Leveraging audience data and likelihood to convert in real time.Right ad to the right user at the right time! 15
  16. 16. RTB – Fundamental Shift in Display Advertising Same impression has different value for 20 30 15 45 33 different advertisers! 20 30 15 45 33 16
  17. 17. A New Way to Target Consumers From ‘Buying Websites’ Drastically improved targeting and campaign ROI ! To ‘Buying Audience’ 17
  18. 18. Key Benefits to Advertisers Precision Greater Optimize Targeting Transparency and Campaign in Control Real-Time Get actionable customer Increase Delivery, Reduceinsights at impression level Wastage, Enhance ROI18
  19. 19. Key Benefits to Publishers Revenue Maximization – Every single impression auctioned to the highest bidder Unleash the Value of your Audience More relevant ad experience for the user19
  20. 20. Real Time Bidding is Exploding RTB Share of Non-Guaranteed Ad Spend (US) 60% 50% 50% $5B+ 40% 30% 20% 15% 10% 5% 0% 1.5% 0% 2008 2009 2010 2011 2012+ 2015E Source: PubMatic white paper Science of Search Advertising coming to Display20
  21. 21. RTB is Super-HeroBut दे स म चलेगा या? 21 KOMLI CONFIDENTIAL
  22. 22. Drivers for RTB Adoption in India Granular audience data is required for success of RTB22
  23. 23. Drivers for RTB Adoption in India Threshold scale of demand & supply required for efficient price discovery23
  24. 24. Drivers for RTB Adoption in India Standardization of rich media ads will drive greater demand and auction efficiency24
  25. 25. Drivers for RTB Adoption in India Prediction Quality in Programmatic Buying (low win volume vs. winner’s curse)25
  26. 26. ATOM – India’s 1st RTB enabled ad platform 26 KOMLI CONFIDENTIAL
  27. 27. ATOM 2.0 – Reach Precise Audience at Scale Access Massive Inventory Target Specific AudiencesIncrease Transparency & Control Improve Delivery & Optimization 27
  28. 28. RTB – A Case Study from ATOM 79% 71%Advertiser Lift in Conversion Rate Lift in Click Through Rate An e-commerce Advertiser A Software Product AdvertiserPublisher 70% Lift in eCPM An Entertainment Publisher 28
  29. 29. Summing Up… 29 KOMLI CONFIDENTIAL
  30. 30. RTB - Driving force behind Display 2.0 Ability to reach precise audience at scale. Auction-based buying reflects true market pricing. Data-driven bid optimization dramatically improves campaign performance. If you are interested in buying on RTB, mail us at atom@komli.com30
  31. 31. RTB is surely the next super-hit Block Buster!Come… Fall in Love… All Over Again… With Display Advertising!  31
  32. 32. Questions, Comments, Feedback, Discussions Thank you!32

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