Learning, Prediction and Optimization in Real-Time Bidding based Display Advertising
Developments in Display Advertising and Real-Time Bidding
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© Search Laboratory Ltd 2014. All rights reserved.
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Developments in Display Advertising & Real-Time Bidding (RTB) Paul Gill – Head of RTB
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Agenda
Why choose display?
History of display
Real-time bidding
Display strategy in 2014
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Why choose display advertising?
Fast, wider reaching advertising
Branding/ direct response campaigns
Diminishing returns on other channels
Competitors
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History of display
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1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The history of display
First banner ad launched
First ad server
launched
Ad spend increases
significantly
First Ad Exchange launches
RTB becomes mainstream
Ad networks dominate market
Google acquires
Doubleclick
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What is RTB?
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RTB is…
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Advertising through:
Display banners
- Static
- Rich media
Videos
Many other options
What is real-time bidding?
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What's different?
Targeting the user visiting a website not just the website itself
RTB is:
“real-time, impression by impression based decision making”
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How do we recognise a user?
Work with multiple 3rd party browsing data companies
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Intelligent targeting
Audience Data
Behaviour data
1st party data
Lifestyle choices
Social interests
Consumer intent
Past purchase
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The benefits
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Traditional display vs. RTB
Purchasing in bulk even though each impression has different value to campaign
Vs. £10 CPM
£1.20 £1.65 £3.12
£1.08 £0.64
£0.88 £0.23
£2.12
£0.77 £1.65 £3.12
Purchase impressions based on their individual worth and only those which are valuable
Only pay for the valuable impressions:
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RTB campaign strategy
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Case study – Bootea
Client Brief
Worldwide advertising campaign
Limited previous success with direct deals
Targets
Consistent conversion growth targets
Increase sale conversions at target CPA
Engage with target audience
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Creating a strategy
Establish strategy and
goals
Multilingual strategy
Creative strategy
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Traditional display strategy
Remarketing Direct dealsAd Networks
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Complete RTB strategy
Keyword Targeting
RemarketingAudience Targeting
• Product keywords• Industry keywords• Target audience keywords
• Lifestyle choices• In market for similar products• Women 18-34
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Timeline for success
Strategic, engaged
setup
ROI, Improving CPA
Stage 1
Broad demographics
Launch remarketing
Custom audience lists
Contextual targeting
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Stage 2: Optimisation
Delivered over 10 million impressions
All on an impression by impression basis
Contextual, audience and 1st party data
ROI, Improving CPA
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Competition
Vs.
Original ad Socially driven ad 20% CTR improvement
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Bid Audience Site Performance Decision
£0.31 CPM18 – 34 year
old social engagers
High volume, low CPA
Acquire further
inventory
£0.55 CPM In market for weight loss High volume,
high CPA
Reduce bids, remove website
Publisher (website) decisions
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continues
continues
Stage 3+: Achieving Success
Increase investment in what works
Combine keyword and audience targeting
Publisher negotiations
Access creative strategy
ROI, Improving CPA
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Results
2,800% increase in conversions in 3 months
CPA target achieved in 3 weeks
15% increase in total sales
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To the future…
Integrate with analytics for reporting
- PPC, Analytics, social metrics uplift
- Time of day/day of week
- Specific geographic targeting
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Questions?