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1 Page: OpenX ©2016 | All information is proprietary and confidential.
Understanding and Leveraging Header Bidding for Success
Presenter: Natrian Maxwell | All information is propriety and confidential.
Header Bidding is an integration on the publisher’s page that exposes each impression to programmatic demand before calling the publisher’s ad server. This means advertisers can dynamically compete for more of a publisher’s inventory in real-time and can see higher quality inventory within their ad stack.
<header script>
Header Bidding Defined
<adapter>
3 Page: OpenX ©2016 | All information is proprietary and confidential.
Publisher
• Maximizes a seller’s control over their advertising setup, so they can prioritize all buyer demand efficiently within their ad server.
• Increased access to higher quality inventory through existing programmatic integrations.
• Increased audience reach and user profiling.
• More scalable method of
buying inventory through Programmatic Direct and Private Marketplaces.
The Value of Header Bidding
Advertiser DSPs & Exchanges
4 Page: OpenX ©2016 | All information is proprietary and confidential.
Key Takeaway
Control for sellers and access to quality impressions at scale for buyers is what this technology is all about.
5 Page: OpenX ©2016 | All information is proprietary and confidential.
Advertisers found themselves locked out of opportunities due to publisher prioritization logic.
01
Reserved inventory was not accessible for advertisers making their purchases through programmatic pipes.
02
Advertisers had a tough time finding high value impressions at scale due to the limitations of the ad server.
03
Prior to Header Bidding
6 Page: OpenX ©2016 | All information is proprietary and confidential.
Ad Server Refresher
An Ad Server is a digital advertising delivery and decisioning technology that grew out of a paradigm where the impression inventory was reserved ahead of time, and ad prices were known to the buyer and seller up front.
Ad
Ad
The Ad Server Demand Side:
Direct Deal Partner 1
Direct Deal Partner 5
7 Page: OpenX ©2016 | All information is proprietary and confidential.
Real Time Bidding Refresher
Real Time Bidding (RTB) is a technology where inventory is not reserved ahead of time, and ad prices and the advertiser are not known by the seller up front, but rather decided dynamically in real time.
Let’s start the
bidding!
8 Page: OpenX ©2016 | All information is proprietary and confidential.
Attributes Ad Server Real Time Bidding (RTB)
Dynamic Pricing X
Fixed Pricing X X
Holistic Yield Management X
Auction Based Buying X
Ad Decisioning X X
Ad Server & RTB
9 Page: OpenX ©2016 | All information is proprietary and confidential.
Key Takeaway
Traditional ad servers have limited publishers ability to fully control how all buyers interact with their inventory through programmatic channels.
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Private Marketplaces Emerge • In order to deal with ad server inefficiencies,
advertisers discovered that the same technologies they have built, could also be used to discover, setup and transact through private marketplaces.
• This change allowed publishers to open up
higher quality inventory to strategic buyers. • Even though pricing and prioritization was
on par, advertisers lacked the ability to compete with “traditionally” direct sold campaigns. Select
Advertisers Select
Publishers
PMP
11 Page: OpenX ©2016 | All information is proprietary and confidential.
Publisher Monthly Inventory Pool After Header Bidding Solutions
Premium Inventory
Remnant Inventory
Mid-Tier Inventory
(High Viewability, high engagement) 700MM Impressions
(Medium Viewability and/ or medium engagement) 150MM impressions
(Low Viewability and/or low engagement) 150MM Impressions
Traditional Direct Deals
High Value Demand
First Look PMP
All Other Programmatic
1 Billion Impressions
Before Header Bidding Solutions Roadblocks
Header Bidding PMPs
Direct Deals/ Header Bidding Open Auction
All other Programmatic
Source: Adapted from As Header Bidding Rises, It’s More Important Than Ever To Understand The Waterfall (AdExchanger), by Paul Bannister, Co-Founder and EVP at CafeMedia.
12 Page: OpenX ©2016 | All information is proprietary and confidential.
Key Takeaway
HOW DOES HEADER BIDDING WORK ?
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Header Bidding in the Ad Server 1. In the ad server: One low
priority RTB line item becomes several that reflect pricing diversity.
Image
Result: Publishers can now use dynamic prices as a method to set priority within their ad server.
$1.00
$.01 $.02 $.03 $1.00
$.99 $.98
2. Publishers can now set individual priority settings for each active line item created.
P12 $.03 P12 $.02 P12 $.01 P4 $.98
P4 $.99 P4 $1.00
14 Page: OpenX ©2016 | All information is proprietary and confidential.
How Bidder Works
User visits page with OpenX Bidder implemented
01 Bidder script directs ad request to the OpenX Ad Exchange to determine impression value
02 DSPs, consisting of various buyers, simultaneously bid on the impression
03
Highest bid is inserted in the ad request and is passed to the publisher’s ad server
04 The highest price wins the impression and the ad is served
06 Ad server has a list of all line items eligible for the ad request, including the bid passed from OpenX Bidder
05
<header script> <header script>
Ad Server Ad Server
15 Page: OpenX ©2016 | All information is proprietary and confidential.
Auction Scenarios
1Reserved line Item needs the impression
2Reserved line item may or may not need the impression
3Reserved line item does not need the impression
• Reserved line items are not impacted by bid price. • Line items are created based on fill goals and impression goals. • If an impression is needed to fulfill a reserved campaign goal, the impression is allocated
automatically to the needed line item. • Exchanges will not have a chance to win the impression.
• DFP creates a temp CPM based on the reserved line’s current progress and sees if an eligible non guaranteed line can beat the temp CPM without interfering with the reserved line’s pacing goal
• If the temp CPM is beaten, the Non Guaranteed line items can compete for the impression • If the temp CPM is not beaten, the reserved line takes the impression • Ad Exchange would need to beat both the reserved temp cpm and the non reserved cpm to win
• If the reserved line does not need the impression, this inventory is sold to the highest bidder
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Header Bidding Summarized
Enables RTB demand to break out of the waterfall and be implemented as separate line items in the ad server
HEADER BIDDING AD SERVER
The ad server evaluates all demand line items and selects a winner for the ad impression
ACCESS & YIELD Header Bidding gets publishers closer to holistic yield management & allows advertisers more access to higher quality impressions at scale
17 Page: OpenX ©2016 | All information is proprietary and confidential.
Shift to server side technology
Improved header bidding signals
New data insights and analytics
New pricing models for increased performance
Increased adoption of Programmatic Direct
01 02 03 04 05
LOOKING AHEAD
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What have we learned?
ü Header bidding overview and benefits Access to premium inventory through programmatic pipes
ü Market challenges and factors for header bidding development Historic ad server priority settings limited access
ü The next 12 months The rise of programmatic direct
19 Page: OpenX ©2016 | All information is proprietary and confidential.
QUESTIONS?
Presenter: Natrian Maxwell | All information is propriety and confidential.
20 Page: OpenX ©2016 | All information is proprietary and confidential.
Thank you
WEBSITE www.openx.com
PHONE +1-855-OpenX-4U (US Sales) +44-800-587-3690 (EU Sales)
21 Page: OpenX ©2016 | All information is proprietary and confidential.
APPENDIX
Presenter: Natrian Maxwell | All information is propriety and confidential.
22 Page: OpenX ©2016 | All information is proprietary and confidential.
s
What You Will Learn
• Ad Server Decisioning deep dive – Understanding the Priority Stack • Dynamic Allocation – Understanding the 4 Dynamic Allocation settings
• Container Tags – Addressing Latency Issues Server vs browser side solutions What challenges do they solve?
Coming Up: Header Bidding
Part 2
23 Page: OpenX ©2016 | All information is proprietary and confidential.
ADDITIONAL EDUCATION TOPICS 1. Programmatic Direct 2. Mobile Header Bidding 3. Fraud & Low Quality Inventory 4. Header Bidding 2.0 Product Deep Dive 5. Cross Device Identification