Real-time bidding (RTB) is an advertising technique that allows demand side platforms to evaluate each ad opportunity individually in real time and decide whether to bid. It provides advantages over traditional advertising like increased targeting, context, predictive analysis, and retargeting capabilities. The document predicts that RTB will continue growing internationally and in video, and that more premium inventory will move to private exchanges.

1. Fresh Digital Group
The Case for Mobile RTB
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2. We Strategize. We Execute. We Deliver. On All Screens.

3. Setting the Stage:
Digital Media Buying Industry Explained
The 3 standard media placements that all traffickers can provide retain pitfalls which we have
noted below. Please read on and allow us to suggest an alternative.
Direct-media-placement: Direct purchase and placement of your digital ad with a specific
publisher, portal or network.
Pitfall: Direct-media placement often brings wasted costs; your audience moves through various websites
across the web, by limiting your ads to specific sites, which carry a premium cost, you miss your moving
target and often hit those who do not fit your desired user profile.
Brand-focused advertising: A concentrated media purchase across premium-sites, portals
and/or targeted publisher verticals.
Pitfall: Your ROI is left up to the value of the placement, however, in most cases brand focused campaigns
show low efficiency and medium-reach that fails to attain your optimal target audience and goals because
they are too costly.
Direct-response (DR) advertising: A media purchase that leverages ad exchanges, content
networks and other cost effective media placement for the „„best bang for your buck‟‟.
Pitfall: A good ROI relies on the optimizing skills of the media trafficker. In most cases however, DR campaigns
lack brand focused opportunities and transparency.
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4. What is Real Time Bidding?
How does it work?
Real Time Bidding (RTB) , is an advertising technology which enables Demand Side Partners (DSP) to EVALUATE each
advertising opportunity Individually, In Real Time and Before Deciding to Buy
Why is it better?
Scale & Profitability
Bulk Buying Campaigns through traditional ad networks (or non-algorithmic DSPs), purchase impressions in bulk, at a
fixed price point. This strategy is highly inefficient as the value of each individual impressions varies significantly.
Real Time Bidding enables platforms to bid with algorithms and calculate and then pay a unique price point per
impression. This technique allows you to increase campaign profitability by paying the appropriate price for undervalued
impressions. you can also increases campaign scale and quality, by bidding greater CPMs for high value, high
converting users.
Targeting & Retargeting
Bulk Buying Strategies have no means to target specific users. Real Time Bidding enables you to evaluate
every user and place a ZERO BID. When a targeted user appears, you can bid for that specific user. This
capability opens up new campaign opportunities for Demand Side Partner Advertisers like Retargeting.
Efficiency
Bulk Buying Campaigns rely on account managers and human decisions. These campaigns managers must
make a manifold of different campaigns with different targeting parameters.
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5. Essential RTB Stats
• RTB will account for 24.7% of all online video ad spend in the US in 2014,which
translates to $1.14 billion
• In 2012, US online video RTB spending reached $402 million, and for 2013,
Forrester projects spending to increase to $686 million.
• RTB technology will support roughly 50% of the display ad volume in North
America in five years.
• By 2016, mobile ad spending will account for 22.6% of digital spend. An
increasing share of these dollars will go to tablets and be purchased through RTB
platforms.
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6. The Mobile Advertiser‟s Dilemma
Some networks provide little or Most ad networks are not
$
$
$ $
no internal traffic, and instead transparent and do not
$ $
$
$$ $ rely on partnered traffic
providers
disclose their traffic sources.
Many traffic networks utilize Many Ad Networks require
spammy or invasive ad unites substantial campaign budget
like push commitments, billing on a
notifications, generating low CPM model, with the promise
value users of performance and fail to
deliver.
Other specialty networks Few ad networks utilize a data
incentivize user app download
$ in exchange for virtual
driven media buying strategy,
instead gambling your
currencies or gift cards. Users advertising dollars on trial and
are only interested in the error.
incentive, not in your product.
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7. RTB Advantages
RTB is more than just a cost saving method for mobile ad buying. It
delivers unprecedented results in the following key areas:
• Targeting • Predictive
Analysis
• Context • Retargeting RETARGETING
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8. Targeting
Device Device model
Network
OS
(wifi vs carrier)
Smartphone Mobile
Vs carrier
Tablet
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9. Context
Geolocation tools offer a granular level of contextual execution by actively
differentiating between:
• Placement
• Mobile Site vs App
• Gender
• Country
• Interest (Fashion, Technology, Business…)
• Daily Location (home, work, college)
By attacking these segments, RTB conveys the highest kind of
contextualization, leading to the most personally relevant ad
experience.
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10. Predictive
• Predictive approaches can “predict” which user might respond to an ad
based not on one specific piece of data, but rather on a wide range of
different attributes. One of the best way to predict who will convert is to look
at your existing converters.
• For example, many converters might have all read the same very obscure
four articles. This data isn‟t necessarily just noise. It might reveal a pattern
that allows us to predict that other people who have read those same four
obscure articles will be especially likely to convert. Those individuals can
then be targeted in a real-time exchange, in the same way a brand might
target someone who visits its site.
• Predictive targeting is extremely important because it allows you to find new
customers, users who might otherwise forever remain off your radar.
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11. Retargeting RETARGETING
• The goal of Retargeting is to turn potential customers into actual customers by
bringing someone to your site who has shown an interest in your product or service
• For example, Amazon can drop a unique cookie on your browser when you look at
a pair of shoes on its site. If you don‟t buy the shoes, but then continue to surf the
Web, a retargeting platform connected to an exchange using real-time bidding
(RTB) can identify you (via your cookie) as someone who visited a specific page on
Amazon. Amazon, meanwhile, will have already entered a bid that tells the ad
exchange how much it‟s willing to pay to serve you an ad for the shoes you looked
at. Amazon will likely bid high, because you are a valuable potential shoe buyer that
is clearly in-market.
• RTB Retargeting is a precious tool for capitalizing on second-guessing buyers who
might need that extra push to complete the purchase. By ensuring that your ad is
consistently viewed by the user, you will remain top of mind and guarantee a higher
chance of action.
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12. FDG‟s Top RTB Predictions
• Programmatic continues to grow in the U.S., but we will also see explosive growth in international markets
such as Asia and Latin America.
• Increasing amounts of premium inventory will move to private exchanges. Publishers will begin to overcome
some of their reluctance to partner with exchanges, although many will remain wary. For advertisers, this
means access to more premium inventory more efficiently.
• Video RTB will go mainstream. It will be all about the robust ecosystem of third parties innovating in the
video space, as well as strong CPMs that continue to rise.
• Third-party data will continue to grow as we see more volume and higher-quality data sources making a
dizzying array of targeting options available on virtually all platforms. This includes search data, social data,
site level data and the ability to layer data on top of data for added insights and advanced targeting.
• Finally, there will be a growing movement to real-time reporting. Next day will no longer be enough;
marketers will demand real-time or near-real-time consoles. This will continue to drive the technology
conversation around big data, big data processing and inform strategic media buying decisions.
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13. Fresh Digital Group
111 John St 2nd FL
New York, NY 10038
www. freshdigitalgroup.com
Fresh Digital Group