Display Advertising 2.0 - Arrival of Real Time Bidding

Display 2.0 – Arrival of Real Time Bidding

Satish KaduVP & Business Head (ATOM), Komli Media Ad:tech, 2012

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1. Display 1.0

2. Display 2.0 – Real Time Bidding as the Game Changer

3. RTB and Indian Online Advertising Industry

4. Atom – RTB enabled Ad Platform from Komli Media

5. Feedback, Questions, Comments

Story-Line for Today

3 KOMLI CONFIDENTIAL

Display 1.0 = दखावा ?High on Promise, But Low on Delivery…

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Display 1.0 = दखावा ?

One Price For All ?

Differential product pricing based on value is the norm everywhere.

Then why one flat CPM rate for all impressions? (that lowers ROI).

CPM should be based on ad impression’s likelihood to serve campaign objective – based on TG fit, intent, context etc.

Every impression is unique! Why not “pay per impression” instead of CPM!

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Display 1.0 = दखावा ?

Buying without Audience Targeting Looking for a needle in the haystack…

Audience “data” lying in various silos and in different forms. Not useful for targeting at scale.

Inefficient Targeting!

One Price For All ?

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Display 1.0 = दखावा ?

Inefficient Targeting!

One Price For All ? Lack of Scale

Operating across disparate ad platforms leads to

Audience Duplication Lack of scale for re-targeting Loss of cross channel

attribution

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Display 1.0 = दखावा ?

“Half of my budget gets wasted… I don't know which half”

Blind/Opaque Buy: Lack of transparency on pricing, audience reached, inventory quality.

Inability to capture customer insight and act upon it at real-time to get maximum benefit

Inefficient Targeting!

One Price For All ? Lack of Scale Low

Transparency

8 KOMLI CONFIDENTIAL

Display2.0… Real Time BiddingJustice Delivered… ताबडतोब

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What is Real Time Bidding?

Massive Scale Display Media Auctioned on a per Impression BasisMassive Scale Display Media Auctioned on a per Impression Basis

RTB is an automated process

which allows media buyers to evaluate, bid on and purchase ad inventory on a per impression basis

RTB is an automated process

which allows media buyers to evaluate, bid on and purchase ad inventory on a per impression basis

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Display 2.0 Value Chain with RTB

Publishers

Publishers

Publishers

Publishers

Ad Networks

Ad Networks

RTB Enabled

Ad Platform

RTB Enabled

Ad Platform

Advertisers

Agencies

Ad Exchange/SSP

Ad Exchange/ SSP

Ad Networks

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How the RTB magic works?

Bids called for RTB auction

Optimized ad delivered

Winning bid accepted

User browses a web page

Entire process is completed in less than

50ms!

Entire process is completed in less than

50ms!

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Optimum Bid-Value Decision using Predictive Models

Probability of

Conversion)

Probability of Success

(Desired Action –e.g. Click, Lead

Conversion)

Campaign Target

(e.g. CPC, CPA)

Scenario 1: Impression happening in rush hourClick probability = 10%Fair Value = Rs. 1Bid = Rs. 1

Scenario 2: Impression happening at leisureClick probability = 80%Fair Value = Rs. 8Bid = Rs. 10

XRTB Bid Value

RTB Bid Value

CPC Goal Rs. 10

Machine Learning models analyzing Terabytes of data queried in real time

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RTB – Fundamental Shift in Display Advertising

Before RTB

Buy only impressions that matter and pay

exactly what it’s worth!After RTB

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RTB – Fundamental Shift in Display Advertising

In real-time, machine driven bidding!

(process completes in less than 50ms)

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RTB – Fundamental Shift in Display Advertising

Reach precise audience!Leveraging audience data

and likelihood to convert in real time.

Right ad to the right user at the right time!

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RTB – Fundamental Shift in Display Advertising

20 30 15 45 33

Same impression has different value for

different advertisers! 20 30 15 45 33

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A New Way to Target Consumers

From ‘Buying Websites’

To ‘Buying Audience’

Drastically improved targeting and

campaign ROI !

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Increase Delivery, Reduce Wastage, Enhance ROI

Optimize Campaign in

Real-Time

Greater Transparency and

Control

Get actionable customer insights at impression level

Key Benefits to Advertisers

Precision Targeting

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More relevant ad experience for the user

Key Benefits to Publishers

Unleash the Value of your Audience

Revenue Maximization – Every single impression auctioned to the highest bidder

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Real Time Bidding is Exploding

0% 1.5%5%

15%

50%

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011 2012+

RTB Share of Non-Guaranteed Ad Spend (US)

Source: PubMatic white paper

$5B+

Science of Search Advertising coming to DisplayScience of Search Advertising coming to Display

2015E

21 KOMLI CONFIDENTIAL

RTB is Super-HeroBut देस म चलेगा या?

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Drivers for RTB Adoption in India

Granular audience data is required for success

of RTB

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Drivers for RTB Adoption in India

Threshold scale of demand & supply

required for efficient price discovery

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Drivers for RTB Adoption in India

Standardization of rich media ads will drive greater demand and

auction efficiency

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Drivers for RTB Adoption in India

Prediction Quality in Programmatic Buying(low win volume vs.

winner’s curse)

26 KOMLI CONFIDENTIAL

ATOM – India’s 1st RTB enabled ad platform

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ATOM 2.0 – Reach Precise Audience at Scale

Increase Transparency & Control

Target Specific AudiencesAccess Massive Inventory

Improve Delivery & Optimization

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RTB – A Case Study from ATOM

79%Lift in Conversion Rate

An e-commerce Advertiser

71%Lift in Click Through Rate

A Software Product Advertiser

70%Lift in eCPM

An Entertainment Publisher

Adve

rtise

rPu

blish

er

29 KOMLI CONFIDENTIAL

Summing Up…

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RTB - Driving force behind Display 2.0

If you are interested in buying on RTB, mail us at atom@komli.com

Auction-based buying reflects true market pricing.

Ability to reach precise audience at scale.

Data-driven bid optimization dramatically improves campaign performance.

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RTB is surely the next super-hit Block Buster!

Come… Fall in Love… All Over Again… With Display Advertising!

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Questions, Comments, Feedback, Discussions

Thank you!