Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks

5, April 2011 - Munich

DMEXCO Night Talks – The Rise of RTBBen Barokas, Founder & Chief Revenue Officer

About Us

Founded in 2007

Exclusive focus on premium publishers

The only SSP run by publishing veterans

Process 40+ billion transactions per month

Offices in NYC, London, SF, Berlin & Toronto

Consistently first to market with innovations in programmatic buying

2Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved.

Circa 2000: The Ad Network Emerges


DirectPremium

Unsold

Ad Networks

Direct Buys

Bulk Buys

Faster internet connections

More engaging websites (i.e. Facebook)

More ways to go online (mobile, iPhones)


Circa 2004: Unsold Inventory Begins To Spike

+

+

=

More unsold inventory for publishers to monetise

Circa 2005: The Ad Exchange Emerges


DirectPremium

Unsold

Direct Buys

Bulk Buys

Ad Networks

The Ad Network Daisy Chain


Unsold InventoryNetwork

12% of Inventory

Very Good CPM

Network

213% of Inventory

OK CPM

Network

385% of Inventory

Poor CPM

Sub-Optimal Revenues

Difficult To Integrate & Test New NetworksExtremely Labor-Intensive

Circa 2007: Enter The Ad Network Optimiser


DirectPremium

UnsoldNetwork

$ 1.55

Exchange

$.98

Network$ 3.40

Direct Buys

Bulk Buys

300+Ad

NetsNetwork€ 1.15

Network

€ 0.55

Network

€.68€.17 €.40 €.30

€.50€.70

Higher revenues, more online ad spend

A central point of contact for programmatic demand

More transparency and control

Increased targeting capabilities


What This Meant For Publishers

YieldOptimisers

Ad Networks

Demand Side Platforms

Agencies

AgencyTradingDesks

OmnicomMedia

AEGIS

Late 2008: Media Buying Goes Real Time


€€ €

Data Providers

€

€€

€


Real Time Bidding simplified

Graphic courtesy of

11

Real Time Optimization

Advertiser gets booked impressions delivered

Fixed price

Fixed volume

Targeting criteria defined by publisher

No interaction between supply and demand sides

Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved.

Real Time Optimization vs. Real Time Bidding

Real Time Bidding

Advertiser sees every single impression

Price varies for each impression

Increased bid density per impression

DSPs set targeting criteria

Advertiser, URL and CPM are exchanged in less than 100ms

12

For Publishers

Full Control- Block list- Floor Pricing

Full Transparency- Advertiser- Bid price- Win ratio

3rd party data provides insight on user base

Privileged & Confidential © 2010, AdMeld Inc. All Rights Reserved.

Advantages of RTB: Both Parties Win

For Advertiser

Full Flexibility- Price per user or per segment

Granular Targeting- Data infused bidding- Floors

Improved efficiency through programmatic buying

Factors Driving Increases in Ad Spends

31%

39%

58%

85%

15%

TagsRTB

14Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.

January 2010

Global Spend on the Admeld Platform

46%

54% TagsRTB


January 2011

Global Spend on the Admeld Platform


RTB spend in 2010


Forrester: RTB To More Than Double in 2011

$353

$823 $380

$592

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2010 2011

Non-RTB

RTB

$733

$1,416

US

exc

han

ge-tr

aded

med

ia s

pen

ding

(in

mill

ions

)

Source: Forrester, Q4 2010

42%

39%

19%

TagsRTBFloors


Auction Pricing Factors, December/January 2011, US


RTB Activity Pacing, Q1

1 trillion bid requests34 live bidders

1 Trillion Bid Requests!

"It comes down to having good ideas and good insights… brand matters but you have

to have technology cause if you just have brand that's not enough anymore.”

- Jeremy Steinberg, VP, Digital Sales & Business Development, FOX News

"We'd be very happy to pay a lot for that inventory and be able to do it through the

mechanics we're talking about” - Adam Cahill, EVP, Media Director, Hill Holiday

“For us the initial hysteria over RTB with sales people thinking they're going to be

replaced by blinking lights on a server had a lot to do with helping us understand what

our business is.” - Peter Longo, CEO, IDG

The opportunity that we can bring our own data, biddable transactions and pay fair

value for them…it's a great evolution for the industry.”

- Zack Rogers, SVP, Sales Strategy & Operations, CBS Interactive


What Are Publishers Really Saying?

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How the Acceptance of RTB Developed in The U.S.

End 2009: Skepticism

Q2 2010: Open to change

Q3 2010: Acceptance

Q4 2010: Start of private exchange

Q1 2011: RTB Hits the Maintream (Prioritized Bidding, High Valuable User)


RTB Continues to Evolve the Marketplace

Successful companies will be those who bring the most amount of efficiency to the transaction process – intermediaries will lose ground

Actionable data and the ability to target will accelerate growth

Publishers will see higher CPMs, more control and more transparency

The industry is no longer one sided – the evolution of buyers, caused sellers to evolve, causing buyers to further evolve

Thank You!

Follow @admeldVisit admeld.com

Private Exchange

300+ Ad Networks

Ad Servers, Ad Storage and Trafficking

35+ DSPs

The majority of the infrastructure and algorithms we use for the online display are directly transferable to the mobile space.

Media Buyers

PublisherInventory

RTB

API/Tags

3rd Party Data

Tags

2011: Mobile Evolves

Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.

Ben Barokas Presents "The Rise of RTB" at Dmexco Night Talks

Technology

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