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Understanding online ad exchanges

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Online, auction-driven marketplace where ad impressions are sold and bought in real time

Most often used to sell display, video and mobile ad inventory

AdX takes a flat, unchanging share of each impression payment. This is different than an arbitrage, buy low sell high model

Who buys from ad exchanges?

Anyone can buy from an ad exchange provided the ad exchange allows it

Advertisers and agencies typically use DSPs or their own bidding technologies

Ad networks and other entities also buy ads from exchanges.

Open Auction

Ad exchange match buyers targeting a publisher's inventory and seeks the highest bid

Auction closing price = Greater of the second highest net bid and reserve price ($4,$3, $2; winning bid is $4 and he will pay $3)

Private Auctions

A publisher holds an auction with only a select set of advertisers

Preferred Deals

Bypass auctions completely

Specific Publisher-Advertiser contracts (Premium inventory)

Inventory Management

Monetize ad inventory on sites that a publisher don’t own or operate

Other website owners authorize you to show ads

Clubbing of inventory

Provide access for smaller publishers to ADX

How will you actually show the ad and track for reporting ?

Tags

URLs

DFP: Ad units (if applicable)

DFP: Placements (if applicable)

Key/values (if applicable)

Example – Show the ad of US specific advertisers in my 300 X 250 ad slot

What’s the criteria that will show an ad on your ad slot ? – target criteria

Ad slot dimensions

“Rules” helps in configuring the inventory

Selection of segments per advertiser/buyer

Control pricing, blocking and other configurations (such as backup ads and ad types)

Types of Rules

Blocking

Opt-In

Ad style and back up ads

Channels

Open auction

Allow and block ads at the account level in an Everyone blocking rule

Allow and block ads at the rule level for specific segments of inventory

Category based (general v/s specific v/s sensitive)

Advertiser URLs (to block competitor ads)

Cookie pool based (re-targeting, re-marketing)

By default certain categories are blocked

Restricted categories (Adult, Gambling)

Ad types / technologies (Admantx, AdLedge – Vendor specific)

Transparent (Branded)

Advertiser can see all details about the publisher (page, URL etc.)

Highest priced inventory

Semi – transparent

Provide domain level information

Anonymous

No information provided

Lowest bid inventory

Source : Doubleclick

Query based reporting

Source : Doubleclick

Source : Doubleclick

Who buys in an Ad Exchange Ad Networks

Agency Trading Desks

Demand Side Platforms (DSP)

Why buy in an Ad Exchange Audience buying

Targeted criteria

Reach and optimal CPMs

Multiple formats / devices

How to buy in an Ad Exchange Directly in the interface

API access

Real Time Bidding

Account

Campaign 1

Ad Group 1

Creative 1 Creative 2

Ad Group 2

Campaign 2

Ad Group 1

Creative 1 Creative 2 Creative 3

Targeting Tactic 1 Targeting Tactic 2 Targeting Tactic 4

VS