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  1. 1. online ad exchange Advertisers Presentation
  2. 2. Overview <ul><li>About The online ad exchange </li></ul><ul><li>Opportunities and benefits </li></ul><ul><li>Bidding process </li></ul><ul><li>Choosing the winning ad </li></ul><ul><li>Types of campaigns </li></ul><ul><li>4 steps to implement a campaign </li></ul><ul><li>Optimizing a campaign </li></ul><ul><li>Pricing and optimization </li></ul><ul><li>Advantages of dynamic pricing </li></ul><ul><li>Portfolio </li></ul><ul><li>Contact Data </li></ul>Advertiser Advertiser
  3. 3. About <ul><li> is the first Romanian Ad Exchange platform, launched at the beginning in collaboration with TradeVille (ex. Vanguard), the leader of the online stock exchange transactions in Romania. </li></ul><ul><li>Our mission is to create a transparent online advertising market, exclusively governed by the principles of offer and demand, and accessible to anyone who wishes to effectively communicate by means of Internet advertising. </li></ul><ul><li>Our goal is to set a fair price for both advertisers and publishers in the online advertising market. </li></ul>Advertiser
  4. 4. Opportunities and benefits <ul><ul><li>The advertiser always pays a fair price for the bought impressions, most of the time less than the specified maximum bid </li></ul></ul><ul><ul><li>Best possible price on preferred zones </li></ul></ul><ul><ul><li>Multiple targeting options </li></ul></ul><ul><ul><li>Multiple bidding possibilities </li></ul></ul><ul><ul><li>Real-time reporting system for tracking and improving performance </li></ul></ul><ul><ul><li>Best conversion rate for better sales optimization </li></ul></ul><ul><ul><li>More opportunities from a diversified network of publishers </li></ul></ul><ul><ul><li>Maximized efficiency at a reduced cost </li></ul></ul><ul><ul><li>Flexibility in organizing and creating campaigns </li></ul></ul>Advertiser
  5. 5. Bidding process <ul><li>Generalized Second-Price (GSP) auction </li></ul><ul><li>Mechanism similar to the Vickrey auctions </li></ul><ul><li>Two steps bidding mechanism: </li></ul><ul><ul><ul><li>The winner of the auction is the player who has the highest ECPM, due to the highest bid or highest quality factor </li></ul></ul></ul><ul><ul><ul><li>The price of the transaction is the ECPM of the second bidder plus a step (0.01 EUR/CPM in TradeAds’ case), but always less or equal than your maximum bid </li></ul></ul></ul>Advertiser
  6. 6. Bidding process (example) <ul><li>Suppose that there are only three eligible ads in the system, at the bidding moment: ad A , with a maximum bid of 2 €/CPM, ad B , with a maximum bid of 3 €/CPM, and ad C , with a maximum bid of 5 €/CPM: </li></ul><ul><ul><li>Winning ad is ad C, because it offers the highest price </li></ul></ul><ul><ul><li>The price paid by the advertiser for displaying ad C is not 5 €/CPM, its maximum bid, but the bid of the second competitor, plus a differentiation step (0.01 €/CPM in TradeAds’ case) – 3.01 €/CPM. </li></ul></ul><ul><li>The winning ad is determined based on: </li></ul><ul><ul><li>AdZone targeting – set by advertiser </li></ul></ul><ul><ul><li>Targeting (geographic, demographics) </li></ul></ul><ul><ul><li>Maximum bid set by advertiser </li></ul></ul><ul><ul><li>Maximum daily budget set by advertiser </li></ul></ul><ul><ul><li>Quality factor (banner creation) </li></ul></ul>Advertiser
  7. 7. Choosing the winning ad Advertiser Uploads creative in TradeAds Available pool of creatives Ad call is generated from the website. Geographical targeting, frequency capping Demographic targeting, campaign optimization Eligible creatives enter the auction Highest paying creative is served. Inappropriate creative is blocked. Back Office Team Advertiser Publisher. Targeting Process Bidding Process
  8. 8. Types of campaigns <ul><ul><li>CPC - cost per click. Starting May 11, 2009 TradeAds allows advertisers to bid directly on clicks, instead of bidding on impressions </li></ul></ul><ul><ul><li>- Display </li></ul></ul><ul><ul><li>- Text : - standard banner </li></ul></ul><ul><ul><li>- video </li></ul></ul><ul><ul><li>- bold words </li></ul></ul><ul><ul><li>CPM - cost per 1000 impressions , advertisers pay for exposure of their message to a specific audience </li></ul></ul><ul><ul><li>CPV - cost per view: full page ads </li></ul></ul>Advertiser
  9. 9. 4 steps to implement a campaign <ul><li>Step 1 – types of campaigns : </li></ul><ul><ul><li>CPC: Display banners, Ad text </li></ul></ul><ul><ul><li>CPM: Cost per 1000 impressions </li></ul></ul><ul><ul><li>CPV: Full page </li></ul></ul><ul><li>Step 2 – targeting </li></ul><ul><ul><li>Target users: by location, by gender, by age </li></ul></ul><ul><ul><li>Filter Ad Zones : by categories, by keywords, automatically by the system </li></ul></ul><ul><li>Step 3 – set bid and budget </li></ul><ul><ul><li>No matter if you wish to buy clicks or impressions, TradeAds will offer you the choice of bidding CPM or CPC: </li></ul></ul><ul><ul><li>Set maximum CPM or CPC bid </li></ul></ul><ul><ul><li>Set daily budget </li></ul></ul><ul><ul><li>Set start and end date for your campaign </li></ul></ul><ul><li>Step 4 – upload creatives, define text-message and start your campaign </li></ul>Advertiser
  10. 10. Optimizing a campaign <ul><ul><li>Real-time bidding values for each zone </li></ul></ul><ul><ul><li>Effectiveness metrics, such as number of impressions, number of leads or number of clicks for each zone </li></ul></ul><ul><ul><li>Efficiency metrics, such as CTR , CPL average eCPM and amount spent , on each zone </li></ul></ul>Advertiser <ul><li>While the campaign statistics are updated every 5 minutes, the advertiser has full control over parameters such as: </li></ul>
  11. 11. Pricing and Optimization <ul><li>Until the Exchange platform, commercial ad serving platforms ignored the two fundamental business goals of advertisers and publishers: ROI and yield. Trading on the Exchange platform, with built-in auto-optimization and a range of pricing models, including dynamic pricing , buyers and sellers reach these goals automatically, and maximize profit with far less effort. </li></ul><ul><li>Dynamic pricing lets the ad server set a bid price for an impression, in real-time, based on the true value of that impression to the advertiser. If the system determines that a given impression has high value to the advertiser (weighing it against the advertiser's pre-set ROI goals), the advertiser bids high. Alternately, if an impression has lower value (for example, a lower likelihood of conversion), the advertiser bids lower. </li></ul><ul><li>Benefits: </li></ul><ul><li>for advertisers, increased reach , more efficient buying , and better ROI as a result </li></ul>Advertiser
  12. 12. Advantages of dynamic pricing Quantity Price 1 2 3 4 5 6 = ad impression Advertiser € 1.12 eCPM € 0.5 eCPM € 0.9 eCPM € 3.5 eCPM € 2.95 eCPM € 3.32 eCPM € 2.2 eCPM € 1.55 eCPM € 4.25 eCPM € 5.8 eCPM In previous model you were never buying with this price In previous model other advertiser was getting this valuable inventory You are still paying on average less than your desired price
  13. 13. Portfolio <ul><li>TradeAds receives new sites in its portfolio every day. However, any ad zone in the system is carefully reviewed by our staff so that it brings best possible value for our clients. </li></ul><ul><li>We reached more than 4,5 million unique visitors in the last month on more than 1000 zones . </li></ul><ul><li>Some of the most visited sites in the Romanian Internet are present in TradeAds:,,,,,, etc. </li></ul>
  14. 14. Contact Data <ul><li>TradeAds Interactive SRL </li></ul><ul><li>Sales Manager </li></ul><ul><li>Ana Maria Bobeica </li></ul><ul><li>Mobil:+40754015442 </li></ul><ul><li>Tel/Fax: +40212095679 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul>