TradeAds.euonline ad exchange

Overview

• About TradeAds.eu• Bidding process• 3 steps to implement a campaign• Optimizing a campaign• Publishers – making money with TradeAds• Why using TradeAds• Portfolio

About TradeAds.eu

• TradeAds.eu is the first Romanian Ad Exchange platform, owned

by TradeVille (ex. Vanguard), the leader of the online stock

exchange transactioning in Romania.

• 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.

• Our goal is to set a fair price for both advertisers and publishers in

the online advertising market.

Bidding process

• Generalized Second-Price (GSP) auction

• Mechanism similar to the Vickrey auctions

• 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 auctions1.

• Two steps bidding mechanism:

• The winner of the auction is the player who has the highest bid

• The price of the transaction is the price of the second bidder plus a step (0.01

EUR/CPM in TradeAds’ case).

1Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords, Edelman et. al, 2006

Bidding process (example)

• 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:

– Winning ad is ad C, because it offers the highest price

– 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.

• This auction type ensures that:

– The advertiser always pays a fair price for the bought impressions, less than the

specified maximum bid

– The publisher gets a fair price for any ad impression

Choosing the winning ad

• All the ads enter the bidding process, for several thousands times

per second. The winning ad is determined based on:

a) AdZone targeting – set by advertiser

b) Targeting (geographic, demographics)

c) Maximum bid set by advertiser

d) Maximum daily budget set by advertiser

Choosing the winning ad

Publisher.

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

Targeting Process

Bidding Process

Advertiser

3 steps to implement a campaign

• Step 1 – targeting

– Target users: by location, by gender, by age

– Filter Ad Zones: by categories, by keywords,

automatically by the system

• Step 2 – set bid and budget

– Set maximum CPM bid

– Set daily budget

– Set start and end date for your campaign

• Step 3 – upload creatives and start

your campaign

Advertiser

Optimizing a campaign

– Real-time bidding values for each zone

– Effectiveness metrics, such as number

of impressions or number of clicks for

each zone

– Efficiency metrics, such as CTR,

average CPM and amount spent, on

each zone

Advertiser

• While the campaign statistics are updated every 5 minutes, the advertiser

has full control over parameters such as:

• Full control over creatives running on a campaign, based on efficiency metrics

Qua

ntity

Price1 2 3 4 5 6

Advantages of dynamic pricing

= ad impression

€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

Advertiser

4 steps to start making money

• Step 1 – zone specifications

– Set accepted creative size

– Set accepted content

– Set auto-approve options for creatives

• Step 2 – zone description

– Describe your site

– Set your zone category

– Specify keywords for your zone

• Step 3 – specify minimum CPM requirements

• Step 4 – download zone script and implement it on

your site

Publisher

Track your income

• Every 5 minutes, publishers see how

their zones perform:

– Click-through rate

– Medium CPM

– Income

– Number of impressions performed

• Control panel with detailed situation of

income

Publisher

Advertisers – why TradeAds

• Multiple targeting options

• Real-time reporting system for tracking and improving performance

• Standard IAB formats

• Best possible price on preferred zones

Publishers – why TradeAds

• Generate a guaranteed income from unsold inventory

• Full control over displayed ads

• Get the best possible price for ad impressions, as set by the market

Portfolio

• 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.

• 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.

Contact TradeAds

Tradeads Interactive SRL

Address: 19 Unirii Ave., bl. 4B, ground floor, sector 5, Bucharest, Post

Code: 040103, ROMANIA

Tel/Fax: +40212095679

office@tradeads.eu

www.tradeads.eu