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Talk by satish kadu, komli @Ad tech, Delhi, 2012
Citation preview
Display 2.0 – Arrival of Real Time Bidding
Satish KaduVP & Business Head (ATOM), Komli Media Ad:tech, 2012
2
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…
4
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!
5
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 ?
6
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
7
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
9
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
10
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
11
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!
12
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
13
RTB – Fundamental Shift in Display Advertising
Before RTB
Buy only impressions that matter and pay
exactly what it’s worth!After RTB
14
RTB – Fundamental Shift in Display Advertising
In real-time, machine driven bidding!
(process completes in less than 50ms)
15
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!
16
RTB – Fundamental Shift in Display Advertising
20 30 15 45 33
Same impression has different value for
different advertisers! 20 30 15 45 33
17
A New Way to Target Consumers
From ‘Buying Websites’
To ‘Buying Audience’
Drastically improved targeting and
campaign ROI !
18
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
19
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
20
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?
22
Drivers for RTB Adoption in India
Granular audience data is required for success
of RTB
23
Drivers for RTB Adoption in India
Threshold scale of demand & supply
required for efficient price discovery
24
Drivers for RTB Adoption in India
Standardization of rich media ads will drive greater demand and
auction efficiency
25
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
27
ATOM 2.0 – Reach Precise Audience at Scale
Increase Transparency & Control
Target Specific AudiencesAccess Massive Inventory
Improve Delivery & Optimization
28
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…
30
RTB - Driving force behind Display 2.0
If you are interested in buying on RTB, mail us at [email protected]
Auction-based buying reflects true market pricing.
Ability to reach precise audience at scale.
Data-driven bid optimization dramatically improves campaign performance.
31
RTB is surely the next super-hit Block Buster!
Come… Fall in Love… All Over Again… With Display Advertising!
32
Questions, Comments, Feedback, Discussions
Thank you!