Display Advertising 2.0 - Arrival of Real Time Bidding
1. Display 2.0 – Arrival of Real Time Bidding
Satish Kadu
VP & Business Head (ATOM), Komli Media Ad:tech, 2012
2. Story-Line for Today
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
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3. Display 1.0 = दखावा ?
High on Promise,
But Low on Delivery…
3 KOMLI CONFIDENTIAL
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!
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5. Display 1.0 = दखावा ?
One Price For Inefficient
All ? Targeting!
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.
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6. Display 1.0 = दखावा ?
One Price For Inefficient
Lack of Scale
All ? Targeting!
Operating across disparate ad
platforms leads to
Audience Duplication
Lack of scale for re-targeting
Loss of cross channel
attribution
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7. Display 1.0 = दखावा ?
One Price For Inefficient Low
Lack of Scale
All ? Targeting! Transparency
“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
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9. What is Real Time Bidding?
Massive 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
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10. Display 2.0 Value Chain with RTB
Publishers
Advertisers
Ad Networks
Publishers Ad Exchange/
RTB
SSP Enabled Agencies
Ad Exchange/ Ad
Publishers SSP Platform
Ad Networks
Ad Networks
Publishers
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11. How the RTB magic works?
User browses a
web page
Entire
process is
Optimized ad Bids called for
completed
delivered in less than RTB auction
50ms!
Winning bid
accepted
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12. Optimum Bid-Value Decision using Predictive Models
Probability of
RTB Bid Success Campaign
Target
Value (Desired Action – X
e.g. Click, Lead (e.g. CPC, CPA)
Conversion)
Machine Learning models analyzing Terabytes of data queried in real time
CPC Goal Rs. 10
Scenario 1: Scenario 2:
Impression happening in rush hour Impression happening at leisure
Click probability = 10% Click probability = 80%
Fair Value = Rs. 1 Fair Value = Rs. 8
Bid = Rs. 1 Bid = Rs. 10
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13. RTB – Fundamental Shift in Display Advertising
Before RTB
Buy only impressions
that matter and pay
exactly what it’s worth!
After RTB
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14. RTB – Fundamental Shift in Display Advertising
In real-time, machine
driven bidding!
(process completes in less
than 50ms)
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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!
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16. RTB – Fundamental Shift in Display Advertising
Same impression has
different value for
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different advertisers!
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17. A New Way to Target Consumers
From ‘Buying Websites’
Drastically improved
targeting and
campaign ROI !
To ‘Buying Audience’
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18. Key Benefits to Advertisers
Precision Greater Optimize
Targeting Transparency and Campaign in
Control Real-Time
Get actionable customer Increase Delivery, Reduce
insights at impression level Wastage, Enhance ROI
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19. Key Benefits to Publishers
Revenue Maximization – Every single
impression auctioned to the highest bidder
Unleash the Value of your Audience
More relevant ad experience for the user
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20. Real Time Bidding is Exploding
RTB Share of Non-Guaranteed Ad Spend (US)
60%
50%
50%
$5B+
40%
30%
20% 15%
10% 5%
0% 1.5%
0%
2008 2009 2010 2011 2012+
2015E
Source: PubMatic white paper
Science of Search Advertising coming to Display
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22. Drivers for RTB Adoption in India
Granular audience data
is required for success
of RTB
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23. Drivers for RTB Adoption in India
Threshold scale of
demand & supply
required for efficient
price discovery
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24. Drivers for RTB Adoption in India
Standardization of rich
media ads will drive
greater demand and
auction efficiency
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25. Drivers for RTB Adoption in India
Prediction Quality in
Programmatic Buying
(low win volume vs.
winner’s curse)
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26. ATOM – India’s 1st RTB enabled ad platform
26 KOMLI CONFIDENTIAL
27. ATOM 2.0 – Reach Precise Audience at Scale
Access Massive Inventory Target Specific Audiences
Increase Transparency & Control Improve Delivery & Optimization
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28. RTB – A Case Study from ATOM
79% 71%
Advertiser
Lift in Conversion Rate Lift in Click Through Rate
An e-commerce Advertiser A Software Product Advertiser
Publisher
70%
Lift in eCPM
An Entertainment Publisher
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30. RTB - Driving force behind Display 2.0
Ability to reach precise audience at scale.
Auction-based buying reflects true market
pricing.
Data-driven bid optimization dramatically
improves campaign performance.
If you are interested in buying on RTB, mail us at atom@komli.com
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31. RTB is surely the next super-hit Block Buster!
Come… Fall in Love… All Over Again… With Display Advertising!
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