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Jiří Malý - How to optimize RTB campaigns – current possibilities of the Czech market MKTFEST

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Jiří Malý - How to optimize RTB campaigns – current possibilities of the Czech market MKTFEST

  1. 1. How to optimize RTB campaigns
  2. 2. RTB is quite often perceived as UFO with different principles In fact it’s been here for a long time
  3. 3. We analyzed media plans of 6 from 20 biggest online spenders and this is what we saw
  4. 4. We analyzed media plans of 6 from 20 biggest online spenders and this is what we saw
  5. 5. It seems that clients do fully understand RTB (programmatic)
  6. 6. But what we get when we define RTB as UFO?
  7. 7. But this is not only methodical difference, it is a reality Programmatic from buy side Programmatic from sell side then we have strong market imbalance ADWORDS SKLIK eTARGET other DSPs When we have in Doubleclick AdX RUBICON PUBMATIC ADMETA APPNEXUS iBILLBOARD many others ADWORDS SKLIK eTARGET 1.43 billion Kč and in 0.05 billion Kč other DSPs
  8. 8. What happens in a situation of imbalance on market where every impression is auctioned? Content network "RTB" optimistic pessimistic optimistic pessimistic Estimated spend 1 430 000 000 Kč 1 130 000 000 Kč 70 000 000 Kč 50 000 000 Kč Estimated impressions 8 339 029 763 14 480 352 594 13 605 815 484 24 605 815 484 CPT 171 Kč 78 Kč 5 Kč 2 Kč avg. CTR 1,7% 1,7% 0,2% 0,2% CPC 10,09 Kč 4,59 Kč
  9. 9. What typically publisher (supplier) things is a right approach to solve low demand?
  10. 10. Single utmost reason for programmatic Programmatic gives possibility to target individual impressions Non-programmatic Programmatic
  11. 11. There is a fundamental problem in perception of RTB Adwords is RTB Adwords is subset of RTB and this is subset of programmatic Programmatic RTB Adwords
  12. 12. Adsense? Doubleclick! <script async src="// pagead2.googlesyndication.com/ pagead/js/adsbygoogle.js"></script> <!-- Standard 300x250 --> <ins class="adsbygoogle" style="display:inline-block;width:300px;height:250px" data-ad-client="ca-pub-77080980480484" data-ad-slot="948038404398"></ins> <script> (adsbygoogle = window.adsbygoogle || []).push({}); </script> <iframe id="google_ads_frame1" name="google_ads_frame1" width="160" height="600" frameborder="0" src="http://googleads.g.doubleclick.net/pagead/ ads?client=ca-pub- 28631575757574211&amp;format=160x600&amp;output=html&amp;h=600&amp; slotname=24445661&amp;adk=22656567623&amp;w=160&amp;lmt=1414393148&am p;ea=0&amp;flash=15.0.0&amp;url=http%3A%2F%2Fwww.jednotky.cz%2Ftlak%2Fbar %2F&amp;dt=1414393434340&amp;bpp=15&amp;bdt=556&amp;shv=r20141021&amp ;cbv=r20140417&amp;saldr=aa&amp;correlator=37497343494432&amp;frm=23&amp; ga_vid=160340384906.14434393147&amp;ga_sid=1414393147&amp;ga_hid=1243437 3032&amp;ga_fc=1&amp;u_tz=60&amp;u_his=2&amp;u_java=1&amp;u_h=1080&amp;u_ w=1920&amp;u_ah=1046&amp;u_aw=1920&amp;u_cd=24&amp;u_nplug=8&amp;u_nmi me=48&amp;dff=times%20new %20roman&amp;dfs=16&amp;adx=1274&amp;ady=147&amp;biw=1899&amp;bih=961& amp;isw=160&amp;ish=600&amp;ifk=895813152&amp;eid=317150304%2C42631002 &amp;oid=3&amp;rx=0&amp;eae=2&amp;fc=8&amp;brdim=0%2C0%2C0%2C0%2C192 0%2C0%2C1920%2C1046%2C160%2C600&amp;vis=1&amp;abl=CS&amp;ppjl=f&amp;f u=4&amp;ifi=1&amp;dtd=398" marginwidth="0" marginheight="0" vspace="0" hspace="0" allowtransparency="true" scrolling="no" allowfullscreen="true"></iframe>
  13. 13. What we mean by Exchange • Adwords • Sklik • Etarget • … Ad Network • Adactive • Impression Media • Spirit Media • … SSP • Rubicon • Admeta • Doubleclick AdX • Pubmatic • …
  14. 14. Maybe this is a reason why programmatic market is not clear Doubleclick AdX Sklik Etarget SSP Ad Network Programmatic score Seznam HP x x x x x 0 Youtube.com √ x x x x 1 Rajce.net x √ √ √ x 3 Centrum.cz √ x √ √ x 3 Novinky.cz x √ x √ x 2 Bazos.cz √ x x x x 1 Heureka.cz √ x x x x 1 Blesk.cz x x √ √ x 2 Nova.cz √ √ x x x 2 CSFD.cz √ x x √ √ 3 iPrima.cz √ √ x √ x 3
  15. 15. Display impressions by network September 2014
  16. 16. Estimated split of whole Czech programmatic market September 2014
  17. 17. Estimated size of programmatic formats September 2014
  18. 18. Mobile programmatic market is quite different September 2014
  19. 19. As well as video September 2014
  20. 20. Programmatic buying has three key pillars Buying algorithm optimization Buying algorithm optimization Buying algorithm Data Quality Ionpvteimntiozrayt iQouna lity Let’s focus on details of these pillars
  21. 21. Buying algorithm optimization Role of core DSP technology
  22. 22. Optimizing assignment for DSP Targeted CPC – what possibilities DSP has to achieve particular CPC when we pay for CPM How big budget do we need for optimized CPC (same applies to CPA)
  23. 23. Simple math on algorithmic optimization Expectation (campaign goal) 12 Kč CPC CPM = 1000 x CTR x CPC Basic CTR 0.15% Maximum allowable bid 18 Kč CPM 20% improvement = (basic CTR – optimized CTR) /optimized CTR Optimized CTR 0.18% Maximum allowable bid 25.2 Kč CPM Basic Impressions with 0.15% 538664 impressions = 807 clicks Optimized Impressions 0.18% 574066 impressions = 1207 clicks Minimum impressions for 95% confidence interval 107732 for 18 Kč CPM 114813 for 25.2 Kč CPM Minimum budget for 95% confidence about 20% CTR improvement 4832 Kč Standard error CPC = CPM / (1000 x CTR) 0.012% CPC between 18 Kč – 12 Kč Minimum impressions for 99% confidence interval 269332 for 18 Kč CPM 287033 for 25.2 Kč CPM Minimum budget for 99% confidence about 20% CTR improvement 12081 Kč Standard error CPC = CPM / (1000 x CTR) 0.007% CPC between 15 Kč – 12 Kč
  24. 24. Simple math on algorithmic optimization To have 95% confidence that with target of 12 Kč per click and default click rate 0.15% we can safely try to improve click rate by 20% and therefore risk actual click somewhere between 18-12 Kč we need to invest 4832 Kč Now what parameters which DSP has under control influence click rate (independent variable)
  25. 25. DSP degrees of freedom Targeted inventory (actual sites, placements) Bid (maximum, minimum, variable) Chosen creative Geography of user User attributes* Frequency Day and time System parameters (Device, OS, browser) Connection speed ISP Simplified math for our particular example = 3 parameters (geography + daytime + creative) with 3 attributes (Prague vs Brno, Morning vs Evening, Creative versions) = testing budget = 3x3x4832 = 43.488 Kč
  26. 26. Small remark Archetype view on media market
  27. 27. If you are on demand side you better look like this Or be really intelligent. Ideally both
  28. 28. While ideal look on supply side is this Or being really intelligent. Ideally both
  29. 29. RTB = CPM? Or CPC? Or CPA? “ Doesn't it make more sense to buy everything on CPC base? ” Well it depends... Bigger is the base CPC and click rate more expensive is to buy on CPC base For example in case of 0.5% CTR CPM price of 15 Kč CPC buy is 400% more expensive than opposite version of 15 Kč CPM buy.
  30. 30. PPC is arbitrage of impressions
  31. 31. Controlling maximum CPM? Yes. But only separately.
  32. 32. Why it matters to control maximum CPM. URL CTR eCPM www.mimibazar.cz/novy_detail_inzertni_fotografie.php 0.38% 14.66 Kč CPM www.mimiaukce.cz/novy_detail.php 1.77% 37.90 Kč CPM pizap.com/pizap-app.php 15.15% 888.50 Kč CPM www.gamesgames.com/game/klondike-the-lost-expedition 7.22% 407.80 Kč CPM ef4c9354242589b3.anonymous.google 2.62% 160.70 Kč CPM memfun.cz/create 50% 3211.47 Kč CPM memfun.cz 2.39% 119.32 Kč CPM Would we get that stellar campaign performance with maximum CPM set? Really memfun.cz/creator attract 50% of audience to our campaign?
  33. 33. ads or fun?
  34. 34. Decision influencing information flowing to bidder User data including unique ID of user known to DSP, site info, device info, placement data, bid floor
  35. 35. Capabilities of adwords, sklik, etarget, “RTB” Adwords Sklik eTarget “RTB” Formats text + IAB hlavní + dynamické inzeráty + engagement ads + video inzeráty text + podmnožina IAB hlavní Podmnožina IAB hlavní Podle rozhodnutí media (libovolný) Buying models CPC, CPM, CPA, visibility, true view CPC CPC Nativně: CPM DSP modely: CPA, CPC, visibility, Targeting Google zájmy Google context Look-a-like 1st party 1st party Kontext 1st party Kontext 1st party Publisher data Behaviorální In-market Networks Doubleclick AdX Sklik eTarget + SSP Libovolný SSP zdroj
  36. 36. DSP vs. trading desk vs. retargetter vs. ad exchange DSP Doubleclick Bid Manager, MediaMath, Appnexus Gives full transparency in buying TD Sociomantic, DataXu, Xaxis, Criteo Gives limited transparency in buying, can apply arbitrage “Retargetter” PerfectAudience,AdRoll Focused on 1st party data targeting, usually does part of the buying through 3rd bidder Ad Exchange Sklik,Adwords,eTarget Allows buying on it’s own inventory only
  37. 37. How does DSP differ from adserver?
  38. 38. A lot of this could be your programmatic infrastructure
  39. 39. Inventory Quality Definition of quality, private marketplaces
  40. 40. An example of Adwords campaign Targeting - interests Categories: Home and garden, Construction and structure, Agriculture and forestry, Doors and windows, Gardening Default maximum CPC 10 Kč Final CTR: 0.14% Average final CPC: 5.8 Kč
  41. 41. Main source of clicks in interests: “Home and garden” URL CTR eCPM www.mimibazar.cz/novy_detail_inzertni_fotografie.php 0.38% 14.66 Kč CPM www.mimiaukce.cz/novy_detail.php 1.77% 37.90 Kč CPM pizap.com/pizap-app.php 15.15% 888.50 Kč CPM www.gamesgames.com/game/klondike-the-lost-expedition 7.22% 407.80 Kč CPM ef4c9354242589b3.anonymous.google 2.62% 160.70 Kč CPM memfun.cz/create 50% 3211.47 Kč CPM memfun.cz 2.39% 119.32 Kč CPM
  42. 42. Main source of clicks in context for keywords: “Adidas, Asics, Nike, McKinley” URL CTR eCPM www.mimibazar.cz/nove_fotografie.php 0.02% 1.60 Kč CPM www.mimibazar.cz/foto.php 0.09% 6.14 Kč CPM www.mimiaukce.cz/nova_aukce.php 8.16% 366.04 Kč CPM www.stardoll.com/cs/user 0.15% 6.63 Kč CPM http://www.kaloricketabulky.cz/susene-svestky 100% 7380.00 Kč CPM
  43. 43. Sklik – main source of clicks in remarketing Site CTR eCPM Novinky.cz 0.18% 10.69 Kč CPM Nova.cz 0.19% 10.79 Kč CPM Prozeny.cz 0.46% 26.27 Kč CPM Blesk.cz 0.23% 13.39 Kč CPM Idnes.cz 0.23% 13.57 Kč CPM Super.cz 0.02% 1.20 Kč CPM iPrima.cz 0.15% 8.00 Kč CPM
  44. 44. Data Quality DMPs, providers
  45. 45. Data sources Buying platform packaged data (visibility, arbitrage, demographics) Buying platform native data Platform integrated data (data exchange deal as source - DMP) Publisher packaged data (private deals)
  46. 46. Czech programmatic marketplace - data Context (Doubleclick Bid Manager native, Appnexus-third-party Grapeshot, CPEX-third-party Demdex, sklik- nativní, Adwords-native) Visibility (external – DBM pre-negotiated, others e.g. Peer39) Behavioural (BlueKai, Exelate, Eyeota, HiFive) Weather (TVTY) Brand Safety (DBM native, Integral Ad Science, DoubleVerify, Grapeshot) Synchro TV (Xaxis Sync, TVTY)
  47. 47. Example of typical costs of data Seznam behavioural - +20% to basis CPM (= cca 2-30 Kč CPM) CPEx Audience packaged data – 1.9 USD including media space, costs of data unknown (= 41.50 Kč CPM) Grapeshot semantic context data – 0.12 EUR CPM (= 3.4 Kč CPM) Adwords behavioral, interests, context – part of CPC arbitrage – price unknown BlueKai interests – 0.32 USD CPM (= 7 Kč CPM) Eyeota bizographics – 1.20 USD CPM (= 26 Kč CPM) DBM Demographics – free inside platform …
  48. 48. Control your inventory, data and optimization and make you campaigns fly Feel free to download this presentation at http://www.programmatic.cz/rtb_explained/

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