online video advertising: programmatic buying and dynamic predictive waterfalls

1. Alex Bornyakov
CEO VertaMedia
vertamedia.com
Automated yield
optimization: dynamic
predictive waterfall

2. What actually happens in media buying?
Direct deals are the most efficient monetization
strategy for publishers.
Non-guaranteed tag-based demand still holds
80% of US digital video advertising market.
We’re still doing waterfalls

3. Common scenario waterfall
Ad ops generate and update a waterfall manually
Inventory
source
Ad serving
Guaranteed
campaigns
$10 CPM tag
Ad Ops
Ad call
$10 $9 CPM tag
$8 CPM tag
W
A
T
E
R
F
A
L
L

4. Does manually managing every ad opportunity help
maximize efficiency?
Latency as a result of trying to save an ad opportunity
Retrospective analysis as a result of fixing the problem after it occurs
Decision-making can result in human error
Slow reaction to traffic changes
Increase in human capital costs when growing demand
Inability to focus on each domain source

5. The ideal case: automated waterfalls
Inventory
source
Domain 1
Domain 2
Domain 3
Domain 100
…
Ad Ops
Unique data
Ad Call
W
A
T
E
R
F
A
L
L
$X
$X
$Y
$Z
Unique data
Ad Call
W
A
T
E
R
F
A
L
L
$X
$X
$Y
$Z
Unique data
Ad Call
W
A
T
E
R
F
A
L
L
$X
$X
$Y
$Z
Unique data
Ad Call
W
A
T
E
R
F
A
L
L
$X
$X
$Y
$Z
Unique data
Focuses on improving efficiency
Switch from a retrospective analysis
to a prescriptive analysis

6. What automation solves
Automation solves issues such as Latency, Tag Error, and Spoiled
Opportunities
Automation considers all demand and supply details in real-time,
maximizing yield
Waterfall automation allows your business to grow without increasing
human capital costs
Automation decreases human error with the buying/selling process
Automation provides unique insight for complex inventory optimization
needs
Automation should be intelligent

7. Vertamedia™Intelli
VertaMedia™Intelli is a predictive algorithm that analyzes
real-time data from programmatic and managed demand in
conjunction with historical data available within the VertaMedia’s
platform.
Big data, collected from numerous campaigns that run in the
system, allows to determine the dependence between traffic
specification and ad campaigns results (fill rates, errors etc.), to
map potential demand and to create the waterfall on the domain
level, every 5 minutes, 1 hour, 1 day, 1 week, 1 month. This logic
guarantees you to maximize every ad opportunity.
Prediction Usage of Big Data Full AnalyticsDeep Machine Learning

8. TOS=5 sec
CLASSIC WATERFALL LOGIC
(Higher CPM - Lower CPM)
VERTAMEDIA DYNAMIC WATERFALL
(VertaMedia Intelli predictive logic) FINAL RESULTSTM
Cmp Id Fillrate, % AvgTTI (s) CPM
1893 35,4551 0,641 14
3070 0,7123 2,992 12,5
3369 0,6182 4,961 12
5800 1,1936 3,903 12
6005 23,3806 4,862 12
3069 0,6785 3,978 11,5
1951 0,8895 5,115 11
6235 1,0568 5,913 11
4244 0,6024 5,008 10,6
762 0,5947 4,602 10
1477 0,9936 3,9 10
2951 100,9089 3,508
Campaigns
Inwaterfall
CPMCmp Id Fillrate, % AvgTTI (s)
1893 35,4551 0,641 14
6102 47,6588 0,9 7
5749 26,4713
34,039
0,548 5
4935 1,546 7
3316 26,4406 1,703 6
3550 27,6867 1,79 6
2550 6,8948 0,626 8
6004 35,9864 5,743 10
6005 23,3806 4,862 12
3351 14,2933 1,768 6
5653 15,5917 1,944 6
3411 12,3672 1,989 7
6030 34,3966 5,027 6,25
Campaignsinwaterfall
eCPM Fill rate
Classic
Waterfall
36,4%$5.0885
Dynamic
Waterfall
$8,042 82,7%
Classic waterfall vs dynamic waterfall

9. WORK SMARTER.
AUTOMATE YOUR WATERFALLS
+1.855.211.2021
a.born@vertamedia.com
vertamedia.com
Alex Bornyakov, CEO