The Case for Mobile RTB
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Real Time Bidding (RTB) is an advertising technology that allows demand side platforms to evaluate each ad opportunity individually in real time before deciding to bid. RTB increases campaign profitability by paying appropriate prices for impressions and increases scale and quality by bidding higher for high-value users. It also enables more effective targeting, context, predictive analysis, and retargeting. The document predicts that programmatic advertising will continue growing globally, more premium inventory will be available on private exchanges, video RTB will become mainstream, third-party data targeting options will increase, and real-time reporting will be increasingly important for strategic media buying.
The Case for Mobile RTB
- 1. Fresh Digital Group The Case for Mobile RTB We Strategize. We Execute. We Deliver. On All Screens.
- 2. We Strategize. We Execute. We Deliver. On All Screens.
- 3. Setting the Stage: Digital Media Buying Industry Explained The 3 standard media placements that all traffickers can provide retain pitfalls which we have noted below. Please read on and allow us to suggest an alternative. Direct-media-placement: Direct purchase and placement of your digital ad with a specific publisher, portal or network. Pitfall: Direct-media placement often brings wasted costs; your audience moves through various websites across the web, by limiting your ads to specific sites, which carry a premium cost, you miss your moving target and often hit those who do not fit your desired user profile. Brand-focused advertising: A concentrated media purchase across premium-sites, portals and/or targeted publisher verticals. Pitfall: Your ROI is left up to the value of the placement, however, in most cases brand focused campaigns show low efficiency and medium-reach that fails to attain your optimal target audience and goals because they are too costly. Direct-response (DR) advertising: A media purchase that leverages ad exchanges, content networks and other cost effective media placement for the „„best bang for your buck‟‟. Pitfall: A good ROI relies on the optimizing skills of the media trafficker. In most cases however, DR campaigns lack brand focused opportunities and transparency. We Strategize. We Execute. We Deliver. On All Screens.
- 4. What is Real Time Bidding? How does it work? Real Time Bidding (RTB) , is an advertising technology which enables Demand Side Partners (DSP) to EVALUATE each advertising opportunity Individually, In Real Time and Before Deciding to Buy Why is it better? Scale & Profitability Bulk Buying Campaigns through traditional ad networks (or non-algorithmic DSPs), purchase impressions in bulk, at a fixed price point. This strategy is highly inefficient as the value of each individual impressions varies significantly. Real Time Bidding enables platforms to bid with algorithms and calculate and then pay a unique price point per impression. This technique allows you to increase campaign profitability by paying the appropriate price for undervalued impressions. you can also increases campaign scale and quality, by bidding greater CPMs for high value, high converting users. Targeting & Retargeting Bulk Buying Strategies have no means to target specific users. Real Time Bidding enables you to evaluate every user and place a ZERO BID. When a targeted user appears, you can bid for that specific user. This capability opens up new campaign opportunities for Demand Side Partner Advertisers like Retargeting. Efficiency Bulk Buying Campaigns rely on account managers and human decisions. These campaigns managers must make a manifold of different campaigns with different targeting parameters. We Strategize. We Execute. We Deliver. On All Screens.
- 5. Essential RTB Stats • RTB will account for 24.7% of all online video ad spend in the US in 2014,which translates to $1.14 billion • In 2012, US online video RTB spending reached $402 million, and for 2013, Forrester projects spending to increase to $686 million. • RTB technology will support roughly 50% of the display ad volume in North America in five years. • By 2016, mobile ad spending will account for 22.6% of digital spend. An increasing share of these dollars will go to tablets and be purchased through RTB platforms. We Strategize. We Execute. We Deliver. On All Screens. 5
- 6. The Mobile Advertiser‟s Dilemma Some networks provide little or Most ad networks are not $ $ $ $ no internal traffic, and instead transparent and do not $ $ $ $$ $ rely on partnered traffic providers disclose their traffic sources. Many traffic networks utilize Many Ad Networks require spammy or invasive ad unites substantial campaign budget like push notifications, commitments, billing on a generating low value users CPM model, with the promise of performance and fail to deliver. Other specialty networks Few ad networks utilize a data incentivize user app download $ in exchange for virtual driven media buying strategy, instead gambling your currencies or gift cards. Users advertising dollars on trial and are only interested in the error. incentive, not in your product. We Strategize. We Execute. We Deliver. On All Screens.
- 7. RTB Advantages RTB is more than just a cost saving method for mobile ad buying. It delivers unprecedented results in the following key areas: • Targeting • Predictive Analysis • Context • Retargeting RETARGETING We Strategize. We Execute. We Deliver. On All Screens. 7
- 8. Targeting Device Device model Network OS (wifi vs carrier) Smartphone Mobile Vs carrier Tablet We Strategize. We Execute. We Deliver. On All Screens. 8
- 9. Context Geolocation tools offer a granular level of contextual execution by actively differentiating between: • Placement • Mobile Site vs App • Gender • Country • Interest (Fashion, Technology, Business…) • Daily Location (home, work, college) By attacking these segments, RTB conveys the highest kind of contextualization, leading to the most personally relevant ad experience. We Strategize. We Execute. We Deliver. On All Screens. 9
- 10. Predictive • Predictive approaches can “predict” which user might respond to an ad based not on one specific piece of data, but rather on a wide range of different attributes. One of the best way to predict who will convert is to look at your existing converters. • For example, many converters might have all read the same very obscure four articles. This data isn‟t necessarily just noise. It might reveal a pattern that allows us to predict that other people who have read those same four obscure articles will be especially likely to convert. Those individuals can then be targeted in a real-time exchange, in the same way a brand might target someone who visits its site. • Predictive targeting is extremely important because it allows you to find new customers, users who might otherwise forever remain off your radar. We Strategize. We Execute. We Deliver. On All Screens. 10
- 11. Retargeting RETARGETING • The goal of Retargeting is to turn potential customers into actual customers by bringing someone to your site who has shown an interest in your product or service • For example, Amazon can drop a unique cookie on your browser when you look at a pair of shoes on its site. If you don‟t buy the shoes, but then continue to surf the Web, a retargeting platform connected to an exchange using real-time bidding (RTB) can identify you (via your cookie) as someone who visited a specific page on Amazon. Amazon, meanwhile, will have already entered a bid that tells the ad exchange how much it‟s willing to pay to serve you an ad for the shoes you looked at. Amazon will likely bid high, because you are a valuable potential shoe buyer that is clearly in-market. • RTB Retargeting is a precious tool for capitalizing on second-guessing buyers who might need that extra push to complete the purchase. By ensuring that your ad is consistently viewed by the user, you will remain top of mind and guarantee a higher chance of action. We Strategize. We Execute. We Deliver. On All Screens. 11
- 12. FDG‟s Top RTB Predictions • Programmatic continues to grow in the U.S., but we will also see explosive growth in international markets such as Asia and Latin America. • Increasing amounts of premium inventory will move to private exchanges. Publishers will begin to overcome some of their reluctance to partner with exchanges, although many will remain wary. For advertisers, this means access to more premium inventory more efficiently. • Video RTB will go mainstream. It will be all about the robust ecosystem of third parties innovating in the video space, as well as strong CPMs that continue to rise. • Third-party data will continue to grow as we see more volume and higher-quality data sources making a dizzying array of targeting options available on virtually all platforms. This includes search data, social data, site level data and the ability to layer data on top of data for added insights and advanced targeting. • Finally, there will be a growing movement to real-time reporting. Next day will no longer be enough; marketers will demand real-time or near-real-time consoles. This will continue to drive the technology conversation around big data, big data processing and inform strategic media buying decisions. We Strategize. We Execute. We Deliver. On All Screens. 12
- 13. Fresh Digital Group 111 John St 2nd FL New York, NY 10038 www. freshdigitalgroup.com Fresh Digital Group