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Online Ad Exchange Platform

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  1. 1. TradeAds.eu online ad exchange
  2. 2. Overview <ul><li>About TradeAds.eu </li></ul><ul><li>Bidding process </li></ul><ul><li>3 steps to implement a campaign </li></ul><ul><li>Optimizing a campaign </li></ul><ul><li>Publishers – making money with TradeAds </li></ul><ul><li>Why using TradeAds </li></ul><ul><li>Portfolio </li></ul>
  3. 3. About TradeAds.eu <ul><li>TradeAds.eu is the first Romanian Ad Exchange platform, owned by TradeVille (ex. Vanguard), the leader of the online stock exchange transactioning in Romania. </li></ul><ul><li>Our mission is to create a transparent online advertising market, exclusively governed by the priciples 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>
  4. 4. Bidding process <ul><li>Generalized Second-Price (GSP) auction </li></ul><ul><li>Mechanism similar to the Vickrey auctions </li></ul><ul><li>It is the dominant transaction mechanism in a large and rapidly growing industry. In 2005, when Google’s total revenue was $6.14 billion, over 98 percent of its revenue came from GSP auctions. Yahoo!’s total revenue in the same year was $5.26 billion - it is believed that over half of Yahoo!’s revenue is derived from sales via GSP auctions 1 . </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 bid </li></ul></ul></ul><ul><ul><ul><li>The price of the transaction is the price of the second bidder plus a step (0.01 EUR/CPM in TradeAds’ case). </li></ul></ul></ul>1 Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords, Edelman et. al, 2006
  5. 5. Bidding process (example) <ul><li>Suppose that there are 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 minor step (0.01 €/CPM in TradeAds’ case) – 3.01 €/CPM. </li></ul></ul><ul><li>This auction type ensures that: </li></ul><ul><ul><li>The advertiser always pays a fair price for the bought impressions, less than the specified maximum bid </li></ul></ul><ul><ul><li>The publisher gets a fair price for any ad impression </li></ul></ul>
  6. 6. Choosing the winning ad <ul><li>All the ads enter the bidding process, for several thousands times per second. 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>
  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. 3 steps to implement a campaign <ul><li>Step 1 – 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 2 – set bid and budget </li></ul><ul><ul><li>Set maximum CPM 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 3 – upload creatives and start your campaign </li></ul>Advertiser
  9. 9. 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 or number of clicks for each zone </li></ul></ul><ul><ul><li>Efficiency metrics, such as CTR, average CPM 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><ul><li>Full control over creatives running on a campaign, based on efficiency metrics </li></ul>
  10. 10. 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
  11. 11. 4 steps to start making money <ul><li>Step 1 – zone specifications </li></ul><ul><ul><li>Set accepted creative size </li></ul></ul><ul><ul><li>Set accepted content </li></ul></ul><ul><ul><li>Set auto-approve options for creatives </li></ul></ul><ul><li>Step 2 – zone description </li></ul><ul><ul><li>Describe your site </li></ul></ul><ul><ul><li>Set your zone category </li></ul></ul><ul><ul><li>Specify keywords for your zone </li></ul></ul><ul><li>Step 3 – specify minimum CPM requirements </li></ul><ul><li>Step 4 – download zone script and implement it on your site </li></ul>Publisher
  12. 12. Track your income <ul><li>Every 5 minutes, publishers see how their zones perform: </li></ul><ul><ul><li>Click-through rate </li></ul></ul><ul><ul><li>Medium CPM </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Number of impressions performed </li></ul></ul><ul><li>Control panel with detailed situation of income </li></ul>Publisher
  13. 13. Advertisers – why TradeAds <ul><li>Multiple targeting options </li></ul><ul><li>Real-time reporting system for tracking and improving performance </li></ul><ul><li>Standard IAB formats </li></ul><ul><li>Best possible price on preferred zones </li></ul>
  14. 14. Publishers – why TradeAds <ul><li>Generate a guaranteed income from unsold inventory </li></ul><ul><li>Full control over displayed ads </li></ul><ul><li>Get the best possible price for ad impressions, as set by the market </li></ul>
  15. 15. 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>Some of the most prestigious sites in the Romanian Internet are present in TradeAds: Automarket.ro, Auto.ro, Eva.ro, Ele.ro, Ziare.com, Bloombiz.ro, Cinemagia.ro, SfatulMedicului.ro, Acasa.ro, BestMusic.ro, etc. </li></ul>
  16. 16. Contact TradeAds <ul><li>Tradeads Interactive SRL </li></ul><ul><li>Address: 19 Unirii Ave., bl. 4B, ground floor, sector 5, Bucharest, Post Code: 040103, ROMANIA </li></ul><ul><li>Tel/Fax: +40212095679 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.tradeads.eu </li></ul>