Ad technology101 v8
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Transcript of Ad technology101 v8
Ad Business 101
what is online ad value chain?
Advertiser Agency Network/Exchange Publisher
Demand Side Supply Side
What’s the product?product equals “advertising inventory”
advertising inventory is the supply of opportunities to display advertising in a particular medium.
then what is an “impression”?
an ad impression is a single viewing of a single ad by a single individual.
Calculating Ad Inventory• two variablesthe number of page impressions on the site,
the average number of ads per page.
The players
• Advertiser• Publishers• Ad Network• Ad Agency
AdvertiserMarketing objectives:– Brand marketing– Direct Response marketing
typically says "I have x million dollars this quarter for online ad display, and there is this campaign I want to run. I want to target Males, 35-45 years, love football, with family, stay in LA, have a dog…Buy me the best media to reach this target audience".
Publishers• a site, game, blog, mobile portal –
Yahoo, Google, Facebook, MSN, CNN• ad inventory as monetization model• Maximize revenue, minimize risks• Monetization model• Larger publishers – have own sales team• Small publishers – sell to ad networks• Search engines – Google, Yahoo, MSFT
Ad Network - I• outsourced sales houses• strikes deals with lots of publishers • sells inventory to advertisers and agencies• value proposition to publishers – sell inventory that the publisher can't sell itself
• value proposition to an advertiser– Ad can appear on lots of sites
• business model = buy inventory cheaply; sell expensive• Types:-– premium networks– vertical networks – contextual networks
Ad Network - II Simple Arbitrage
Vertical Aggregation
Behavior Targetting
Performance
Platform Specialization
Platform Specialization
remnant inventory
Go to Market - small
publishers
Ad Exchange
Targeting Methods
Placement Options
Nature of Inventory
Pricing Model
Technology platforms
Efficiency in Ad imp buying
Auction based model
Buy audience vs
Buy sites/ placement
Ad Agency
Create Ads
Buy Media
SSPOptimizing Remnant inventory
Network Optimizers
DSPManaging
multiple Ad Exchanges
One tool, centralized reporting
Central Hub for Data
Data Exchanges and DMPsManage the Big
Data
Cookie warehouse,
with analytics firepower
Data Agg – allow
Advertisers analytics
Provide purchase and consumption
base data
Integrate your data w/ 3rd Party
Data
How does An Ad work?1 2
3
4
Get real?1
2
Ok, get really real!!
Credits• Many blogs – • Ben - http://
www.adopsinsider.com/ad-serving/how-does-ad-serving-work
• Ian Thomas - http://www.liesdamnedlies.com/online_advertising_business_101.html
• http://www.allaboutcookies.org/ad-serving/• http://www.adopsinsider.com/ad-serving/what-is-holistic
-ad-serving/#more-733
• http://www.adopsinsider.com/ad-exchanges/ssp-to-dsp-cookie-synching-explained
• The rise of performance-based advertising Article by Brandt Dainow
Appendix….and Bonus Slides…
New Problems
Some Terms…..• price discrimination, volume discounts and bundling• rate card • frequency capping• guaranteed vs 'discretionary' or non-guaranteed inventory• retargeting• remnant inventory & spot pricing• floor price• spot priced• forward prices• premium publishers• velvet rope advertisers • 'filler' inventory
Why newspapers are like airlines?• both seem to be going out of business • other similarities:-–perishable inventory–finite supply of inventory– charge different customer differently (aka price
discrimination)–high fixed costs–maximize revenue by selling as much of their
inventory as they can at the highest average price possible.
RTB - I
User BrowserWebserver
Ad server
SSP
Exch
1 2
3
4
56
78
9
1011
12
13
DSPs
RTB - II• Advertisers get impressions at a price that matches
their goals and objectives. • Publishers use SSP with supply side algorithms to get
the maximum yield out of ad inventory• RTB involves a real time auction for each ad
impression in which buyers and sellers come to an agreement
• basic premise of RTB • ad impressions are not commodities to be sold in bulk,
and that each ad impression is unique• Auctions take place at a blink of an eye. • Volumes of bid requests and bids are also staggering. • Emerging Standards - OpenRTB
Yield Management - I• In eighties, American Airlines led a
transformation of the US airline industry• Introduced "Ultimate Super Saver Fares"
(1985) • Why? People pay more for same airline ticket
when purchased at short notice• Helps airline to sell and advertise tickets at a
much lower price for advance purchases. • Hence, yield management business is born.
Yield Management • Yield management• “……practice of maximizing the average price
received for inventory through a number of techniques, amongst them price discrimination…”
• Yield management specifics:- – a publisher has flexible control over the cost of
sale– volume discounts important for sale of online ads
• yield management is maximizing gross profit rather than top-line revenue.
RichMedia• “…umbrella term for ads which are more interactive, or use sound and/or
video to get their point across...”. Eg:-– An expandable banner with embedded video– An ‘advergame’ (a mini-game embedded inside an ad unit)– A video ad served before, after or during a video clip– A ‘page takeover’ ad (an ad which covers the page it’s on, or interacts with that page or
the other ads on it in some way)
• Rich Media Vendors• Atlas Rich Media (MSFT), DoubleClick Rich Media (GOOG), Yahoo! Rich Media,
Eyeblaster, EyeWonder, Pointroll, Interpolls, Rovion, Unicast• Challenges rich-media campaign:-
– Creating the actual ads themselves (the creative)– Trafficking the ads (getting them actually placed onto publisher sites)– Managing and serving the creatives themselves, and measuring delivery and response
• Where next?• Available to Big & small Advertisers• Technology to create one single creative to fit all screens.• Uniform playing field
Convergence of Purchase Funnel