This document discusses programmatic advertising ecosystems and real-time bidding (RTB). It describes the various players in the programmatic ecosystem like demand-side platforms, supply-side platforms, ad exchanges, and data providers. It also explains how RTB works through a second-price auction, the pricing models used, and the targeting and buying options available through programmatic advertising. Charts show data on programmatic ad spend trends in Europe and Italy from 2010-2015, with RTB requests growing significantly over that period.

1. © 2014 DataXu, Inc. All rights reserved.
Programmatic
ecosystem

2. Display echosystem

3. Programmatic Ecosystems

4. Market players
AdNetworks
Online
Media
Agencies
Demand – Side –
Platforms e.g.
Supply – Side – Platforms
e.g.
AdExchanges
e.g.
Re-Targeter e.g Criteo
Data-Provider e.g. Bluekai, Profile Data Exchange, Quantcast
Ad Server which master Real-Time-Bidding e.g. AdForm, MediaMind, Mediaplex
A
D
V
E
R
T
I
S
E
R
P
U
B
L
I
S
H
E
R
Agency Trading
Desks

5.  Online advertising aggregato, prenotato, lanciato,
analizzato e ottimizzato via demand side software ed
algoritmi.
 Implica l’utilizzo di multi-sourced data per il targeting,
l’ottimizzazione ed in generale per tutte le decisioni,
perciò parliamo di Data-driven advertising
 La maggior parte dell’inventory disponibile è “non
garantito”, exchange-traded e venduto in RTB
 Può essere applicato anche al media “garantito” infatti
vediamo crescere sempre più i c.d .private marketplace,
dove inventory 'premium‘ viene comprato e venduto in
maniera programmatica
Programmatic buying

6. © 2012 DataXu, Inc. All rights reserved.
RTB:
cos’è e come funziona

7. online-marketplaces & technology suppliers gestiscono le
offerte in real-time per acquisire gli spazi banner con una logica
“second price auction” (1 cent in più della seconda miglior
offerta)
Donna, 30 anni
Behaviours: fitness, travel, cooking
DSPs, SSPs, AdExchanges
1st look, 2nd look
bid # 1
€0.50*
bid # 2
€1.25*
bid # 3
€0.90*
bid # 4
€0.75*
bid # 2
vince
a €0.91*
Real-Time-Bidding: cos‘è
70 - 500 millisecondi
*calculated CPM
*calculated CPM

8. Pricing models: il modello ad
arbitraggio (acquisto dinamico, vendita a cpm/cpc fisso)
60% 50%
CPM del
Cliente
dynCPM Fornitore
Prezzo
(€)
Giorni
Tutto il margine è del fornitore

9. Pricing models: RTB trasparente
(acquisto e vendita a cpm dinamico)
Max. CPM Cliente
Prezzo d’asta
Giorni
Minor costo per il cliente
Prezzo
(€)

10.  CPM massimo: 1,5€
– Rappresenta il bid massimo, quindi il volume minimo garantito
(1500€ per 1.000.000 di imps)
– L’algoritmo ottimizza l’acquisto facendo efficienza, e garantendo
un overdelivery (di solito oltre il 50%) facendo diminuire il cpm
effettivo a consuntivo
(ad es. 1500€ per 1.500.000 imps;ecpm =1€)
Il modello d-cpm

11. Pricing models
0
20
40
60
80
100
Fixed CPM
0
20
40
60
80
100
dCPM to CPC
0
20
40
60
80
100
dCPM to CPA

12. Pricing models
0
20
40
60
80
100
Fixed CPM
0
20
40
60
80
100
dCPM to CPC
0
20
40
60
80
100
dCPM to CPA

13. Targeting Options
13
Carrier
3, Tim, Vodafone, Wind
Operating System
iOs, RIM, Android, S40, Windows, etc.
Handset Marca & Modello
Tablet vs. Smartphone, 180 Marche, 2,900 modelli
Contextual
Geography, content, daypart, ad-exchange, app/m-site/mobile
web
Demo & Data
Age, Gender, 3rd Party Data Segments
NEW

14. Programmatic Buying Options
Private
Exchanges
Direct w/
Programmatic
Exchange
Media
Exchange cleared with
special prioritization.
Open Exchange
Media Buying
Guaranteed Direct
Publisher Contracts
What are they?
Who can
participate?
How is it
accessed?
How is it priced?
Who do you pay?
Advertisers with
direct contracts
Advertisers approved
by publisher
Advertisers approved
by exchange
Via ad server tags Via an exchange Via an exchange
What inventory is
typical?
Direct publisher
inventory
Prioritized publisher
inventory
Exchange inventory
Fixed price.
Determined by IO
Auction with floor or
Fixed Price. First
look option
Auction priced
Advertiser pays
publisher for media
and DX tech fees
Advertiser pays
DataXu for media
and any tech fees
Advertiser pays
DataXu for media
and any tech fees

15. © 2014 DataXu, Inc. All rights reserved.
Programmatic Ad-spend
Overview
Europe and Italy

16. European Online Display Spending
© 2013 DataXu, Inc. All rights reserved. | 16

17. Display Value by Country
Source: 2012 IAB AdEx Benchmark

18. RTB in Europe 2010-2015

19. Source:AppNexusProprietaryReporting(Nov.2012)
+ 2452,77%
+ 4209,72%
RTB requests EU5 (in bn)

20. RTB requests (in bn.)
Italy vs. other EU countries
Source:AppNexusProprietaryReporting(Jule2012)