2 23378 rtb-dsp-decoded

a WHITEPAPER from MEDIAPLEX
RTB & DSP
DECODED
By David A. Yovanno
President, Mediaplex
ValueClick, Inc. (NASDAQ: VCLK)

RTB & DSP DECODED © COPYRIGHT 2012 MEDIAPLEX. ALL RIGHTS RESERVED. MEDIAPLEX.COM
PG.01
INTRODUCTION
PG.02
UNDERSTANDING RTB DSP
PG.02 RTB Versus Traditional Media Planning and Buying
PG.03 Different Advertisers, Different Audience Values
PG.04 Why Publishers Use RTB
PG.05 Empowering the DSP–It Takes Data
PG.06 Automatic Bidding–Billions of Times Per Day
PG.06 Learning and Dynamic Optimization
PG.07 RTB and DSP Benefits
PG.08 A Couple Things to Consider
PG.09
QUESTIONS TO ASK AS YOU CONSIDER RTB AND DSP VENDORS
PG.09 1. Is RTB Right for Your Brand?
PG.10 2. Should You Choose A Self-Serve Platform of a Managed DSP Service?
PG.12 3. Is the DSP’s Primary Focus on First or Third Party Data?
PG.13 4. Can the Solution Meet Your Brand Safety Standards?
PG.14 5. Does the DSP Offer Access to ALL of the Leading Exchanges?
PG.14 6. Does the Vendor Have a Commitment to Service After the Sale?
PG.15
CONCLUSIONS
PG.15 ABOUT THE AUTHOR
PG.16 ABOUT MEDIAPLEX

01
RTB DSP DECODED © COPYRIGHT 2012 MEDIAPLEX. ALL RIGHTS RESERVED. MEDIAPLEX.COM
Marketer interest in real-time-bidding (RTB) and demand side
platforms (DSPs) has exploded over the last several years. A recent
Forrester report stated that 46% of US marketers are already
investing or planning to invest in RTB. By 2017, Forrester predicts
that 30% of US Display media will be purchased via RTB,i
and I
predict it will be over 50%.
Today there are dozens of exchanges and DSPs vying for your
business. Yet arguably the industry has done an inadequate job of
truly educating strategic marketers about their value and situational
relevance.
For marketers less familiar with RTB and DSPs, the space can feel a bit confusing. This white-
paper is designed to help bring clarity to the space and outline some questions to consider as
you explore whether RTB and DSP-based buying are right for you and your brand, and which
DSP approach and vendor might make the most sense for your brand’s unique situation.
The whitepaper begins with an explanation
of RTB and DSPs, their benefits, and their
drawbacks. From there, we move into a
discussion of questions to ask yourself as you
consider the relevance of RTB and individual DSP
vendors.
INTRODUCTION
i
Forrester: Digital Media Buying Forecast – 2012 to 2017
“
By 2017, Forrester
predicts that 30% of
US Display media will
be purchased via RTB,i
and I predict it will be
over 50%.”
“
The industry has done
an inadequate job of
truly educating strategic
marketers about RTB
and DSPs.”

02
UNDERSTANDING RTB AND DSP
Trying to get a handle on real-time-bidding and demand side platforms? You’re not alone. While
RTB is complex, it presents a massive opportunity for advertisers. As one of the fastest growing
categories in digital, it is well worth your time to understand.
RTB VERSUS TRADITIONAL MEDIA PLANNING AND BUYING
In a nutshell, RTB represents a major evolution in the buying and selling of digital media. Prior
to the advent of RTB, digital display and video ads were generally bought using the “traditional”
media buying model. In this traditional approach, which is still in widespread use today,
impressions are purchased in advance in bundles of thousands or millions, at a fixed price.
That price is agreed upon by the buyer and seller based on a variety of factors. Agreements are
typically executed in the form of a signed insertion order and the commitment typically spans
weeks or months. In traditional media buying the seller is primarily responsible for the selection
of the purchased impressions.
With RTB, the advertiser evaluates and bids on individual ad
impressions as they are about to occur. In this new model,
publishers make their ad impressions available on auction-
based media exchanges. Brands can buy those impressions
directly through the exchange UIs, but most prefer to use tools
called demand side platforms (DSPs) to empower their bidding.
DSPs offer three key advantages over buying directly through
exchange UIs:
•
They enable global ad frequency capping across exchanges which improve campaign
efficiency and user experience.
•
They empower brands to leverage their own data for targeting.
•
They make it easy to apply sophisticated algorithms for bid optimization.
The exchanges allow DSPs to access the inventory directly
through APIs. A DSP is a management and optimization
platform that aggregates many RTB APIs (both from direct
publishers and exchanges), uses data and optimization to make
bid decisions, and then executes the bids.
Bid prices depend on the characteristics of the impression
being bid on. This includes site and context variables as well as,
and perhaps more importantly, attributes of the viewer about
to be exposed to the ad. By evaluating information about the
“
With RTB, the advertiser
evaluates and bids on
individual ad impressions
as they are about to occur.”
“
Bid prices depend on
the characteristics of the
viewer about to be exposed
to an ad.”

03
impression the advertiser can determine how attractive it is before deciding whether to bid
on it. The advertiser only bids what they think reaching that particular individual is worth, and
if they are the highest bidder for the ad space, their ad is displayed. This all takes place as a
site page is loading, hence the name “real-time bidding.” And unlike traditional media buying:
•
Thereisnoordercommitmentbytheadvertiserbeyondtheimpression’sbidprice
•
There are no signed insertion orders with individual publishers, but rather one master
agreement executed with an ad exchange.
DIFFERENT ADVERTISERS, DIFFERENT AUDIENCE VALUES
RTB uses an auction-based pricing model somewhat analogous to Google Paid Search. Auction
participants place bids on a particular impression, and the highest bidder gets to show their ad.
Different advertisers might place very different values on reaching a particular individual.
Let’s illustrate this with an example. Suppose that the following six facts were known about
the web visitor:
• Female
• 25-34
• High Income
• New Mom
• Looking to Buy a Car in the Next 30 Days
• Currently browsing her favorite lifestyle website
Now, let’s consider the appeal of this web visitor to three different brands:
• Cosmetics Brand
• Diaper Brand
• Car Brand
By examining the known information about this web visitor, we can make some guesses
about how much each brand might bid to reach her.
Let’s start with the cosmetics company. For the cosmetics firm, the relevant facts that we
know about the would-be viewer are that she is young, female, and high income. Clearly,
young and rich are good qualities for a cosmetics customer generally. However, we don’t
know if she buys a lot of makeup, or buys her makeup in a store where that cosmetics

04
company’s products are available. The advertiser does not know for certain whether she is a
likely buyer of their products, but does know she has some desirable qualities. As a result the
cosmetics firm might bid relatively low for the impression, because they are unsure if she’s a
great prospect.
Moving on to the diaper brand, it’s clear from the profile above that she may be a great prospect.
She’s a new Mom, so there is an opportunity to sell her a lot of diapers in the years to come.
Therefore, they would likely bid higher than the cosmetics company, because her possible value to
their business is much higher.
Finally, the car brand might view this in-market car buyer as
an excellent prospect. And because the profit margin is high
on cars, getting her to buy THEIR brand would be worth a lot
of money. This would likely lead the car brand to bid more for
the impression than either the diaper or cosmetic company.
If these three organizations were the only three bidders on our
female web visitor, the car company would likely win the auction
and have their banner display when the web page loads.
Please understand that this is a drastic oversimplification of
RTB. Here our example looks at 6 attributes and their likely
correlation to a retail sale. In reality, brands might measure
hundreds of user-specific attributes against multiple different conversion types to predict
the value of an impression in real-time. For example, a brand may optimize towards multiple
measurable metrics like site visits, CRM email joins and/or actual product purchases, and
may incorporate hundreds of demographic, contextual, and behavioral variables to identify
ideal prospects and determine their optimal bid price. But the basic principle – that an impression
delivered to a particular individual has different values to different brands – is the most important
idea to come away with here.
WHY PUBLISHERS USE RTB
The RTB model enables a publisher to sell its impressions based upon the precise value of
its audience. Publishers choose to work with exchanges for a variety of reasons:
•
Some websites use the exchanges and ad networks to sell their entire advertising
inventory, in lieu of hiring a sales force. For niche websites this can make a lot of sense
because their impressions can more easily get “on the radar” of a DSP than trying to
sell directly to a media planner.
“In reality, brands might
measure hundreds of user-
specific attributes against
several different conversion
types to predict the value of
an impression...”

05
•
Other sites find that the quality of audience segments
can drive bid prices that are higher than they can get
for their general audience. For example, a publisher
with an Auto section may find that it can sell its
Auto enthusiast site visitors for a high price on the
exchanges.
•
Still other publishers find it impossible to sell their
entire inventory through the traditional buying model.
They use RTB as well as ad networks to monetize
unsold inventory.
In short, RTB gives publishers another avenue to make
money, the opportunity to increase their yield and the flexibility to try new approaches.
Many ad networks have responded by accessing some or all of their inventory through the
exchanges versus via direct negotiations with sites.
I also believe that publishers are beginning to recognize that some media buyers simply
don’t want to interact with salespeople – they prefer a buying method that is automated.
Just as some consumers prefer to buy airline tickets without the help of a travel agent, so
too do some media buyers just prefer to get on with it and skip the salesperson interaction.
RTB helps publishers sell inventory to this growing group.
EMPOWERING THE DSP – IT TAKES DATA
Participating in RTB requires a tool that can process massive
data sets and calculate bids against billions of impressions
in real time. These tools are called demand side platforms,
or DSPs. The DSP enables you to set campaign rules and
assess the value of impressions based upon the context of
the impression and the characteristics of the viewer.
A DSP determines the users a brand should bid on and
identifies media impressions that will reach these types of
users. Obviously the goal is to message people who are most likely to become customers. In
order for a DSP to do this successfully it requires direction in the form of data.
First, you need to develop a desirable audience profile. Your brand may have a great deal of
research as to who its customers are. Such a profile might include measures like gender,
age, family status, income, etc.
“
Publishers are beginning to
recognize that some media
buyers simply don’t want to
interact with salespeople
– they prefer a buying
method that is automated.”
“A DSP enables you to set
campaignrulesand assess
the value of impressions
based upon the context
of the impression and
the characteristics of
the viewer.”

06
Then you need information to determine whether the impressions you might bid on will
reach your target audience. To do this you need real-time data about the particular viewer
who would be seeing your ad. That data can come from two kinds of places: it can be your
own customer data (first party data,) or it can be purchased (third party data.)
The advantages of using “first party” customer data for your campaign are that it is free,
but more importantly that it is proprietary and specific to your brand. Exclusive access to
this data gives you a competitive advantage against other
bidders because it reflects insights that only you have.
The challenge is that many brands lack the underlying
end-to-end data infrastructure necessary to make that data
available to the DSP. The other option is third party data,
purchasable from a variety of data resellers. Third party data is
purchased on a CPM basis, similar to most digital media. The
data is readily available for purchase, but the challenges are
that it can be costly and that everyone else has access to it and
may be incorporating it into their models.
AUTOMATIC BIDDING – BILLIONS OF TIMES PER DAY
Naturally, brands are not manually deciding what to bid on every impression as they occur. All this
evaluating and bidding has to take place in milliseconds using advanced DSP technology. Brands
can input campaign parameters and a maximum bid value for the prospects that interest them.
DSPs calculate a bid price for an impression in a fraction of a second. Their bid is matched
against other bids in the exchange. A winner is determined
and the winner’s ad is served on the page. All this occurs
almost instantaneously, so that there appears to be no
delay in loading the page on the consumer’s screen. The
computing power required to accomplish this has only
become available in the last few years.
LEARNING AND DYNAMIC OPTIMIZATION
DSPs aren’t just bid management tools. Rather, they are
constantly learning “what works” by identifying the relative
effectiveness of different user characteristics in order to
optimize your bidding strategy. This learning helps them adjust
“
Your first party data
gives you a competitive
advantage against other
bidders because it reflects
insights that only you have.”
“
DSPs are constantly learning
‘what works’ by identifying
the relative effectiveness
of different user
characteristics in order
to optimize your bidding
strategy.”

07
the weighting they place on each audience characteristic in order to drive maximum performance.
That means that over time, a DSP is getting better and better at setting appropriate bidding
prices for your best prospects. Because different DSPs have different algorithms and different
access to data, some might perform better or learn faster for your brand than others.
RTB AND DSP BENEFITS
DSPs make genuine individual impression buying a reality. Advertisers can now opt to buy
individual impressions versus blocks of media. The DSP allows an advertiser to calculate
and bid the true value of a web user for their business. While the level of targeting
sophistication varies from DSP to DSP, it is generally robust.
Using traditional buying methods, brands often use indexing as a means of identifying the
best prospects for their messages. So, for example, if you wanted to target men, you might
choose a sports site, which has a high composition of male readers. But there are also
female readers on the sports site. That is just one instance where allocating dollars purely
by site and context leads to waste.
Most DSPs have access to a number of third party data providers. While the majority of data
providers focus on identifying individuals with particular interests and behaviors, there are also
data providers that can provide contextual data on the thousands of sites that sell inventory on the
exchange. You can layer this contextual knowledge onto audience insights so that your ads reach
the people with characteristics you value on content related to your category.
With RTB, you can often get very competitive pricing on high quality inventory. This efficiency
is a key reason for the high growth rates in RTB. But one key to the success of RTB is that
the focus is on the user, so that it is possible to reach an
individual on sites with highly attractive pricing.
DSPs also offer many forms of transparency. Using a DSP
you can quickly identify the best performing targeting data,
contextual environments, and the like. Further, because
the platforms often offer algorithmic optimization, you may
learn about effective targeting characteristics you’ve
never considered before. DSPs also offer you visibility into what sites and user attributes
performed best. Note, though, that a relatively small number of pubs do not reveal their
brands out of fear that they might cause channel conflict with their traditional sales channel.
“DSPs also offer many forms
of transparency.”

08
Unlike traditional buying models, with RTB you can change your buying parameters in real-time
to optimize more quickly and leverage learnings across a greater proportion of your spend.
A COUPLE THINGS TO CONSIDER
There are a few things you need to be aware of before you choose to purchase media via a DSP.
First, with RTB, you need to be more flexible with regard to the sites that your messages
will appear on, versus buying sites individually. In order to get the maximum pricing and
optimization benefits, you cannot limit your buy to a small handful of publishers. The idea
behind working with a DSP is that you are buying a user, not a publisher environment.
Your impression may appear on leading sites as well as niche sites. You have the ability to
avoid advertising on a set of sites, and to limit your buy to a certain category of sites, like
Travel. But in order to unlock the full value of RTB you should be open to buying your target
audience across a fairly broad set of sites.
Second, you are somewhat limited in the types of creative units that are available through
the various exchanges. While the list of available formats is slowly growing to include more
rich media, video and mobile units, the majority of RTB inventory is in IAB standard sizes
(e.g., 728x90, 160x600, and 300x250.)
Third, it is OK to lose an impression auction. RTB performance is not a function of the
number of ads delivered. RTB is about bidding the right price based upon an impression’s
value to your brand. If you have confidence in your algorithm, you should feel secure
in the fact that you are only running ads in placements that are a good value given the
characteristics of the users seeing them.
Finally, some publishers hold back some of their best inventory for direct sale or ad network
sale only. Front page ads, for example, may not be available from certain publishers via RTB,
while other pages may be available. Many brands find this tradeoff completely acceptable
because their focus is on the user, not the page. Where necessary, they can go publisher-or
network-direct for super premium page inventory and rely on the exchanges for user-based
buying. But if you want front page inventory only, RTB might not be for you with regard to
that kind of placement.
If you’ve decided that RTB may make sense for you, it’s important that you know what to look
for. There are more than two dozen vendors currently offering DSP services. Consider the
following questions as you evaluate your alternatives:

09
1. Is RTB right for your brand?
2. Should you choose a self-serve platform or managed DSP service?
3. Is the DSP’s primary focus on first or third party data?
4. Does the DSP solution meet your brand safety standards?
5. Does the DSP offer access to all of the leading exchanges?
6. Does the vendor have a commitment to service after the sale?
Let’s examine each of these individually.
1. IS RTB RIGHT FOR YOUR BRAND?
RTB is a distinctive approach to media purchasing that is most relevant for when a brand:
• Buys a great deal of online media across many sites
•
Runs a great deal of “IAB standard units” like 728x90s, 300x250s, and 160x600s
•
Is committed to the efficiency of user-based media buying
•
Has concrete, measurable goals (direct response or branding goals) against which a
program can be optimized
Generally, RTB is more relevant for medium-sized or large brands. The more sophisticated
your approach to advanced targeting methodologies, the better the fit with RTB. Similarly,
companies with a comprehensive data strategy tend to benefit more from RTB because of
the value of using first party data in targeting.
RTB is less appropriate for when a brand:
• Buys very little digital display or video media
• Buys solely on a few sites
•
Focuses on custom units and experiences versus standard units and sizes
• Prefers indexing-versus user-based targeting
If more than one of those characteristics apply to you, it may be prudent to forego RTB until
your programs change.
If you work on the agency-versus the brand side, RTB may make sense as a way of serving
QUESTIONS TO ASK AS YOU
CONSIDER RTB AND DSP VENDORS

10
clients that wish to deploy an audience-based buying
strategy. A full service or managed DSP offering enables
an agency to reap the benefits of RTB for its clients
without hiring a team or altering its accounting and billing
processes. Also, the largest agency holding companies
have created their own in-house “trading desks” to manage
RTB buying across many clients.
2.
SHOULD YOU CHOOSE A SELF-SERVE
PLATFORM OR A MANAGED
DSP SERVICE?
Once you’ve decided RTB is right for your brand, your first decision is how you want to
access DSP capabilities. Here you have two choices:
•
Choose a Self-Service DSP platform. In this use case, you would buy access to
a platform and then hire a staff of people to use it. While some DSPs have sleek
dashboards that make it appear easy to manage a DSP program, the reality is that
DSPs are NOT easy to use well. There is a high degree of sophistication necessary to
create the targeting and business rules that will truly optimize your programs. The
person (or people) who runs the DSP will need to be trained in the particular DSP
you choose. It is recommended that brands and agencies that choose to operate their
own “trading desk” staff the appropriate statisticians and analysts required to develop
sophisticated bid optimization and attribution models in order to be competitive in the
RTB marketplace. Keep in mind that these are real media dollars being spent every
minute, so you want experts making optimization decisions.
•
Use a Full-Service or Managed DSP. Some companies (including Mediaplex) offer
DSP-based buying without the need for you to staff and manage the tool yourself.
Under the managed model, the media partner staffs and operates the DSP on
your behalf. You can purchase media using an IO rather than making a long term
commitment to a particular platform. All buying, serving, reporting, and optimization
are executed by the vendor, freeing your team to focus on more mission-critical
strategic challenges.
While not all managed DSP vendors provide the same level of consultation,
customization and service, many advertisers choose a managed service because the
vendor is capable of executing more advanced RTB strategies. The most sophisticated
vendors will be able to assist a brand in developing a custom data strategy, will have
“
A managed DSP service
enables an agency to
reap the benefits of RTB
for its clients without
hiring a team or altering
its accounting and billing
processes.”

11
the technology and services to support data tracking and management, and will help
develop brand specific data models for more accurate bid optimization and attribution.
Before selecting a managed DSP vendor be sure to determine if they have “one-size-
fits-all” models baked into their software and if they can truly provide consultative data
management support.
The decision on whether to do-it-yourself or choose a managed solution is an important
one. Many of the DSP companies strongly prefer that customers buy the technology and
staff it themselves while providing minimal support. This is in large part because these
companies are funded via venture capital. VC firms favor technology over service business
models because they are valued higher and offer greater potential profit if/when the
company is acquired or goes public. A technology company increases margin with every
added installation of their product with very little increase in costs. Technology businesses
can be valued at 10+X revenue for example, while media/services companies can be valued
at 10+X profit.
With service businesses there is a more direct relationship
between the size of the business and its operating costs.
More accounts mean more people and more expense. While
providing a managed service runs counter to VC goals, service
businesses often make more sense for brands and agencies.
When you speak to various DSP providers you may find that
some have a strong desire to sell you a self-serve platform.
The reality of the marketplace is that relatively few brands
are actually leveraging a self-serve solution to any degree
of scale. Most have chosen a managed DSP offering. A big reason for this is the complexity
involved in collecting and managing data, as well as in effectively applying this data towards
bid optimization and measurement. All these things are essential to effective use of a DSP.
Self-serve platform providers can be a good option for companies that have:
• A core competency in media buying already
•
Added new resources recently with advanced skills in statistics
•
A commitment to maintaining an internal media buying organization over the long haul.
For example, a number of very large companies buy all of their media “in house” – for such
businesses a self-serve DSP warrants consideration. In addition, several of the large agency
holding companies have created DSP divisions to manage RTB advertising buys across their
agency brands. These organizations have committed to staffing experienced media traders that
“
Relatively few brands are
actually leveraging a self-
serve solution to any degree
of scale.”

12
are capable of fully maximizing the benefit of a DSP. The decision to hire these expert media
traders depends heavily on an organization’s level of digital sophistication and investment.
For most companies, a managed solution is probably preferable. First, there is no need
to hire DSP experts or incur training costs to get them competent on a particular DSP
platform. Even a relatively modest DSP deployment will require at least one full time
employee to staff it. Larger programs will necessitate an entire team to manage efforts.
Some companies have tried to staff DSP installations with existing media planners and
buyers but the skill sets are actually rather different. It can require significant time and
expense to get them trained adequately.
Companies with a managed DSP offering have the staff and expertise already. Further, a
managed DSP typically works on an insertion order basis, much like in a traditional media
buy. The brand and DSP provider develop a campaign buy outlining estimated impressions
and targeting strategies. Then the DSP team executes on the brand’s behalf. In this model,
a brand’s existing accounting and reporting structures require little or no modification.
Whichever way you go, it’s important that you minimize
the number of DSPs you work with. The reason is that if you
use more than one DSP you may actually be bidding against
yourself for inventory, which artificially inflates its cost.
3.
IS THE DSP’S PRIMARY FOCUS ON FIRST
OR THIRD PARTY DATA?
In order for a DSP to work it needs access to lots of
audience data. Some data is provided by the RTB source; however, you ideally need to use
either your own data or purchase third party data. First party data comes from your existing
marketing infrastructure – ad tracking of multiple marketing channels, site visitation,
CRM data, etc. Companies with a sound data foundation can combine these important data
sources and leverage this large customer data set for DSP targeting.
If all of your data sources are united in a single platform already, this is a great basis on
which to build a DSP advertising program. DSPs can also use partial sets of first party data
for targeting.
There are many advantages of using first party data in a DSP-based targeting effort:
•
The data are specific to your brand. It’s the ultimate form of customized targeting.
“
If you use more than one
DSP youmayactuallybe
biddingagainst yourself for
inventory, which artificially
inflates its cost.”

13
• Using first party data for DSP targeting is free.
•
They enable you to assign different values to different levels of current commitment
to your brand.
•
By using first party data in your DSP, insights you learn from the RTB buying effort
will actually enrich your customer understanding.
RTB is an auction market, and auction pricing (like the stock market) is a function of
asymmetries of information. To be successful then in RTB means to have differentiated
quality data. Certainly having more than the exchange minimum, but also having the right
information and means to process it.
For brands that don’t yet have a comprehensive data strategy or platform, there are a variety
of vendors that will sell you audience data on a CPM basis through exchanges. You define
the customer characteristics that interest you, and sources for the data can be quickly
identified and implemented. The challenge is that third party data costs money. The more
specific or esoteric the characteristic, the more expensive the data is. And if you need to buy
multiple data points, each additional data point can add to the total cost of delivering your
advertising. Third party data can add significantly to you total media costs.
That doesn’t mean that using third party data will lead to inefficient targeting – it simply
points out that third party data are not a panacea because it can add significantly to costs
and affect your overall CPM. Some brands also combine first and third party data to enrich
audience profiles while keeping data costs under control.
As you consider DSP alternatives, concentrate on options
that focus primarily on first party data targeting versus
third party. Even if your company doesn’t yet have a
comprehensive data platform and strategy, there are
companies (including Mediaplex) that can help you improve
your data collection and management efforts.
4.
CAN THE SOLUTION MEET YOUR BRAND SAFETY STANDARDS?
Most brands are understandably concerned about where their ads run. They might want to avoid
content that has one or more of the following characteristics:
• Erotic/pornographic
• Extremely violent
“
Focus on options that focus
primarily onfirstpartydata
targetingversusthirdparty.”

14
• Political in nature
• Unflattering to the category or brand
• Strongly negative in tone
•
Inappropriate for some other brand- or audience-related reason
The level of protection necessary for your brand is up to you and
your company. Some companies have relatively loose standards
so they can avail themselves of rock-bottom CPMs. But most
brands have stricter standards. Make sure that the DSP you
choose offers truly robust brand protection tools.
These tools should be proven effective and offer you a variety of
brand protection options beyond “no porn.” DSPs sometimes
have partnerships with third party brand protection tools, and
may also offer proprietary quality assurance features.
5.
DOESTHEDSPOFFERACCESSTOALLOFTHELEADINGEXCHANGES?
There are a relatively large number of media exchanges and publishers who provide direct RTB
access today. Each exchange varies in size, in the sites that use it to sell inventory, and in the DSPs
that access it. Not all inventory or data is available on every exchange or to every DSP.
DSPs work with multiple advertising exchanges and some direct publisher RTB sources in order
to access inventory. I strongly suggest that you choose a solution that accesses more than one
RTB source. This will give you broader inventory access because many publishers do not work
with all of the exchanges.
In general, access to the largest exchanges is most important. There are also vertical exchanges
for a few categories to be aware of as you make your choice.
6.
DOES THE VENDOR HAVE A COMMITMENT TO SERVICE AFTER
THE SALE?
RTB and exchange-based buying are complicated. It requires the involvement of experts who
understand how to develop and implement a program that will most benefit your business.
But some DSP platforms don’t offer genuine support and service.
“
Make sure that the DSP you
choose offerstrulyrobust
brandprotectiontools.”

15
A big part of the issue is that many of these solutions are created by tech startups funded by
venture capital firms. As we discussed earlier, VCs don’t like to invest in companies that offer
extensive service because the potential return for such businesses is lower than if they sell
instances of a tech platform with minimal human involvement. That’s because the marginal cost
of creating another instance of a self-serve platform is near zero, while having staff to assist
clients costs real money.
The tech-centric VC model works well in many categories.
But the more complicated the challenge, the more service
is critical in realizing its true potential for your brand.
Stay away from companies that don’t deliver real, ongoing
service. The term SaaS, software as a service, is really a
misnomer. You want software WITH service, not just a point
product with little to no expert help after the sale.
If you do choose to deploy a self-serve platform, make
sure the company offers strong training and has a dedicated team available to assist
with targeting and optimization and ready to serve when you have problems. For those
organizations that are not ready to invest in in-house teams, service-centric partners can
make DSP buying as turnkey as making a publisher-direct or network buy.
CONCLUSIONS
I hope that this whitepaper has helped provide some clarity and texture to RTB and DSPs.
These are both hot and potentially confusing topics, but the basic principles behind them are
actually relatively simple.
The idea of valuing every impression based upon the relevance of its viewer is an amazing
leap forward for digital media and targeting. It represents a giant step toward the concept of
personalized marketing that is clearly where our industry is ultimately headed.
While RTB is not for every brand, it’s clear that more and more brands are seeing a fit between
their objectives and this approach to media buying. The keys to making the right decision are:
• Ensuring the right fit
• Choosing the methodology of access that is right for your organization
• Finding the best vendor for your particular situation
I’d welcome your thoughts and comments on this paper. Please feel free to email me your
thoughts and comments at davidyovanno@mediaplex.com.
“
Stayawayfromcompanies
thatdon’tdeliverreal,
ongoingservice.”

16
ABOUT THE AUTHOR
As president of Mediaplex, the technology services division of ValueClick, David A. Yovanno
is responsible for all of its global operations. He is also responsible for driving cross-division
synergies and assisting with the Company’s corporate development program.
Mr. Yovanno first joined ValueClick in 2000 and held a number of leadership positions
for ValueClick Media including executive vice president of sales and marketing, general
manager and chief operating officer until 2008. Mr. Yovanno left ValueClick in 2008 to be
CEO of Gigya, a successful social technology company based in Silicon Valley, and rejoined
ValueClick in 2011. Mr. Yovanno has also served on the board of the Interactive Advertising
Bureau and in the United States Navy as a Lieutenant and CIO.
Mr. Yovanno is a graduate of The George Washington University in Washington, D.C.,
where he earned his bachelor’s degree in marketing and master’s degree in health
services administration.
ABOUT MEDIAPLEX
Mediaplex, a division of ValueClick, Inc. (NASDAQ: VCLK), is the technology-empowered
analytics and optimization provider that scientifically identifies the best way for brands
to invest marketing resources and then executes against those insights with a suite of
advanced campaign management tools. Its unique software with service model delivers
industry-leading technology coupled with the deep analytics expertise necessary to
answer Marketing’s most mission-critical question: how to maximize ROI from marketing
investments. With all the essential software and services needed to correctly collect,
manage, interpret, and action data, Mediaplex’s end-to-end solution is the first to make
genuine data-driven marketing a reality.
For more information visit Mediaplex.com or contact us at 1.877.402.PLEX (7539).

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