PubMatic RTB White Paper

8/6/2019 PubMatic RTB White Paper

1/40

Understanding

Real-Time Bidding(RTB)Fromthe Publisher Perspective

Technical level o white paper:


2/40Published February 2010


3/40

P M c 2010 3

Table o Contents

Executive Summary 4

Unlocking the True Value of the Impression 6

Understanding the RTB Ecosystem 12

Ensuring High Publisher eCPM with RTB 19

Ensuring RTB Data Safety and Brand Protection 28

Conclusion 34


4/40

4 P M c 2010

Real-Time Bidding, or RTB, is sure to be one o the most

requently used online advertising buzzwords o 2010. Many

advertising experts have argued that it is going to undamentally

change the course o online advertising as we know it. It has even

been re erred to as the next revolution in advertising or the bene ts

it will provide to all players in the ecosystemthe publisher, the user,

and the advertiser.

Real-time bidding allows advertisers to reach the right user, in the

right place, at the right timeand assign an individual value to a

particular ad impression. Leveraging advanced technology o ered

by a relatively small but quickly growing number o companies,

advertisers place bids on reaching speci c users dynamically, and

on an impressionby-impression basis.

PubMatic has ound that publishers monetizing ad inventory via RTB

can receive an increased eCPM because o the improved campaign

per ormance that RTB o ers. In the case o one particular US

Entertainment publisher, the publisher was able to achieve a 106%

increase in eCPM over a six-month period.

Executive Summary:RTB From The Publisher Perspective


5/40

P M c 2010 5

Along with the clear bene ts o RTB, publishers must be cognizant

o the potential pit alls associated with this emerging media buying

trend. RTB was originally conceived as an advertiser- ocused

solution, and publishers must take multiple issues into account in

order to make their businesses success ul in an RTB-enabled world.

PubMatic estimates that less than 1% o online advertising was

purchased via RTB in 2009, and that will grow to 3-5% in 2010.Because RTB is the astest growing segment o US online advertising,

its imperative that publishers understand the RTB landscape and

how to success ully harness RTB ad dollars to their bene t.

Along with the clearbene ts o RTB,publishers must becognizant o the potentialpit alls associated withthis emerging mediabuying trend.


6/40

6 P M c 2010

The most important promise that RTB holds or publishers is

increasing the value o ad impressions. With RTB, advertisers

have the greatest level o transparency available on the individual

user in real-time, which can signi cantly increase the value o

each ad impression and the corresponding publisher CPM.

Unlockingthe True Valueo the Impression


7/40

Real-time Individual Attributes

Behavioral + Contextual

Behavioral

Contextual Targeting (page/section)

Contextual Targeting (site)

Contextual Targeting (network)

Page/Section Level

Run of Site

Run of Network

P r i c e

Transparency Increases the Value of the Impression

$ $ $

$

Transparency

(Non-guaranteed Impression Value to Advertisers)


8/40

8 P M c 2010

Having greater transparency about the user in real-time provides

great insight to advertisers, but it is the di erence in how media

is bought and sold with real-time bidding that is the true game

changer.

Currently, most digital media buying is done based on assumptions

about certain audiences. For example, audiences bought through ad

networks and ad exchanges are o ten purchased in buckets or by

segment. How the audiences are categorized in certain segments

depends on who is selling them. And while some audience sellers

do a better job o segmenting users than others, so long asindividual impressions are being grouped into a bucket and sold at

a pre-negotiated price, they are not being airly valued and are o ten

sold at under-valued prices, as shown.So long as the individualimpressions are beinggrouped into a bucketand sold at a pre-negotiated price, theyare not being airly

valued.


9/40

P M c 2010 9

In Example 1 , a luxury car advertiser is looking or a very speci c

audience type and is willing to pay a premium price to reach a

speci c user that is highly quali ed. The more quali ed the use, the

more the advertiser is willing to pay. On the right side o the example

below, the advertiser (or rather the technology company placing

bids on behal o the advertiser) can see unique characteristics

about the user and there ore is willing to pay a $3.90 CPM to target

that user.

On the le t hand side, the same user would have been bucketed into

an auto-buying segment and priced according to the segment price,which is ar lower than what was paid via RTB or the individual.

User X

Segment Based BuyingPre-negotiated price

Segment Value to Luxury Car Brand:$1.75 CPM

User X

Impression Level Buying (RTB)

Has visited multiple auto siteswithin the past few days

Is currently reading a vehiclefinancing page

IP address is Aspen, Colorado

Browser is Apples Safari

Time is 9:30 a.m. on a Saturday

With segment based buyingadvertisers set parametersfor users to be grouped intocertain audiences before thecampaign. While data iscollected in order to group theuser into a specific audience,it is not in real-time.

Individual Value to Luxury Car Brand:$3.90 CPM

Example 1: Same User, Same Campaign (Purchased Differently)


10/40

10 P M c 2010

Example 2 below shows the ongoing luxury car ad campaign on a

larger scale. Because RTB is conducted in real-time, advertisers,

or their proxy vendor that acilitates their media buying, can buy

impressions to reach speci c users or reject them as the campaign

is in progress. There ore, in a real-time situation the luxury car

advertiser would likely choose to reach many o the same users

that would have been segmented or them as auto buyers in a pre-

negotiated bucket buy. However, having more in ormation about

each individual user, the advertiser would also likely want to reach

users that didnt all into the pre-de ned auto buyer segment while

also rejecting some o the impressions that would have made itinto the segment. More importantly, the pricing would be di erent

based on the unique characteristics o each user as opposed to an

average across the segment.

Example 2: Segment Based Campaign vs. Impression Level Campaign (RTB)

Audience Value Spectrum to Advertisers

P r i c e

P a

i d b y

A d v e r t

i s e r s

Less More Real-TimeSegment Based Buy


11/40

P M c 2010 11

In the long run, advertisers that have better per orming campaigns

can pay more to target the right users. According to Turn, a

company that acilitates RTB transactions or advertisers by

leveraging inventory rom sell-side plat orms such as PubMatic,

advertisers are seeing up to 135% improvement on click-through

rates and 150% improvement on conversion rates.

Better per orming campaigns have a positive impact on all parties

involved, not just or the advertiser. Below are a ew key bene ts that

RTB brings to the publisher, the user, and the advertiser.

The Ecosystem Benefits of RTB

Publisher

Significantly improved valueper impression.

Overall eCPM lift. Greater Brand Control.

User

More relevant ads. Faster page loading times.

Advertiser

Better performance. Increased ROI.


12/40

12 P M c 2010

Real-time bidding is very much still in its in ancy, but the

number o companies that help advertisers and publishers

leverage RTB is growing rapidly. In 2008, the number o

companies talking about RTB could be counted on one

hand. In 2009, the number o companies involved in real-

time bidding increased dramatically, but each category in the

RTB ecosystem plays a signi cant role and it is important or

publishers to understand those roles.

Understanding theRTB Ecosystem


13/40

PREMIUMPUBLISHER

PubMatic brings the most bidderstogether to compete for everyimpression, and ensures thepublishers data is protected.

A G E N C Y

B U Y I N G

D E S K

A D E X C

H A N G E

A D N E T

W O R K

D E M A N D

S I D E

P L A T F O

R M

( D S P ) S

E L L S I D

E

P L A T F O

R M

( S S P )

AGENCY / ADVERTIS

ER

The Many Possible Flows of RTBEach colored line represents a possible RTB flow scenario.


14/40

14 P M c 2010

PubMatics Role (Sell Side Plat orm)

About

PubMatic is a sell side plat orm, also known as

a publisher yield optimizer, which works withpublishers to increase their advertising revenueand help manage ad inventory. PubMatic builtits RTB technology or the exclusive bene t othe publisher.

PubMatics Ad Auction Engine

is described in detail in the ollowing section,accepts real-time bids on behal o thepublisher, but those bids are only accepted ithe bid is higher than all o the other demandsources that are included in the auction orevery single impression.

RTB PartnersInclude

Demand side plat orms (DSPs), ad networks,ad exchanges, publishers

RTB FiduciaryObligation Publisher

RTB RoleSell side plat orms are a conduit to acilitatedemand rom buy side plat orms.

RTB Technology

PubMatics Real-Time Bidding API allowsdemand partners including DSPs and RTB-enabled ad networks and exchanges toleverage the inventory provided by PubMaticspublishers.


15/40

P M c 2010 15

Agency Buying Desks

About

Agency buying desks can be thought o as

a specialized arm o larger media buyingagencies that ocus on media trading and RTB.Each desk represents a speci c agency.

RTB PartnersInclude

Parent agency, advertisers, demand sideplat orms (DSPs), ad networks, ad exchanges

RTB FiduciaryObligation Parent agency/ Advertiser

RTB Role

Agency buying desks generally serve as the

liaison between the advertiser or parent agencyand the plat orms they use to acilitate real-time bidding. For example, an agency buyingdesk may work with a DSP to acilitate an RTBcampaign.

RTB Technology

Agency buying desks do not have core RTBtechnology to acilitate campaigns in real-time or that they use a 3rd party company,usually a DSP. However, some enable buyers,through a single inter ace, to procure inventory

rom many sources, add layers o advertiserand 3rd party data, and manage targeting, andanalytics.

Agency Buying Desk Parent Agency

B3 WPP / Group M

Adnetik Havas Digital

Cadreon IPG Mediabrands

Varick MediaManagement MDC Partners

- Omnicom Media Group

ATOM Systems Razor sh

VivaKi Publicis


16/40

16 P M c 2010

Demand Side Plat orms (DSPs)

About

Demand side plat orms (DSPs) enable buyersto connect directly to multiple sources oinventory supply and provide such bene ts asworkfow simpli cation, integrated reporting,algorithmic buying optimization, and the abilityto make impression-level bids (RTB).

RTB PartnersInclude

Agency, agency buying desks, advertisers,sell side plat orms (SSPs), ad exchanges, adnetworks

RTB Fiduciary

Obligation Agency, agency buying desk, advertiser

RTB Role

DSPs are the oremost experts in media tradingand RTB or the advertiser and use their coretechnology to acilitate RTB campaigns. Atpresent time, no DSPs are locked down to anysingle agency, instead, they work with multipleagencies to provide the technology andexpertise needed to support RTB campaigns.

RTB Technology

The DSP technology is what truly separates

DSPs rom the agency buying desks. Whilenot all DSP technology is created equal, mostDSPs tend to have their own proprietaryalgorithms with help to ne tune advertisingcampaigns in real-time in order to produce thegreatest ROI or their partners.

RTB in Market(representative list)

[X+1]AppNexusAudienceScience (also under

Ad Network)DataXuInvite Media

Lucid Media (also under Ad Network)MediaMathTriggitTurn (also under Ad Network)


17/40

P M c 2010 17

Ad Networks

About

Ad networks aggregate supply (inventory) and

demand (ads) and add their own and 3rd partydata as well as targeting and optimizationtechnology.

RTB PartnersInclude

Agency, agency buying desks, advertisers,DSPs, Sell side plat orms (SSPs), AdExchanges, Ad Networks, publishers

RTB FiduciaryObligation

No single one (works or both the advertiserand publishers)

RTB Role

Ad networks are slowly adding RTB capabilitiesin order to acilitate RTB transactions on behalo agencies, advertisers, and agency buyingdesks. Ad networks are increasingly competingwith DSPs or the same advertiser dollars.

RTB Technology

Similar to DSPs, ad networks with RTB rely onproprietary algorithms to determine the value oa given ad impression and deliver superior ROIper ormance to their advertising clients.

RTB in Market(representative list)

AudienceScience(also under DSP)Fox Audience Network (FANLucid Media(also under DSP)Rocket FuelLucid MediaTurn (also under DSP)Advertising.com


18/40

18 P M c 2010

Ad Exchanges

About

Ad exchanges are powered marketplaces

where numerous ad networks, publishers,advertisers and other sources o supplyand demand meet to buy and sell mediain continuous real-time bidded auctions.Exchanges provide workfow and reportingservices and tools or buyers and sellers, aswell as access to data suppliers and targeting,optimization and analytic technology andservices.

RTB PartnersInclude

Agency, agency buying desks, advertisers,DSPs, Sell side plat orms (SSPs), AdExchanges, Ad Networks, publishers

RTB FiduciaryObligation

No single one (works or both the advertiserand publishers)

RTB Role

The majority o ad exchanges have built RTBcapabilities or ad buyers (ad networks, adagencies, advertisers) as opposed to adsellers.

RTB Technology

Most ad exchange RTB technology is nascentand still in a scale-up mode with the eventualgoal o making all inventory in an exchangeavailable to buyers via RTB. Look or adexchanges to scale up the amount o biddableinventory signi cantly in 2010.

RTB Enabled AdNetworks

Product

AdBrite AdBrite ExchangeContextweb ADSDAQ

Google Ad Exchange (DoubleClick)

Microso t AdECN

OpenX Open Exchange

Yahoo! Right Media Exchange


19/40

P M c 2010 19

A truly competitive bidding environment is essential or ensuring

consistent and continuous revenue growth. PubMatic has seen

signi cant eCPM improvements or its publishers that are

participating in RTB campaigns, but because this is a bidding

environment, a high price is not guaranteed. RTB is still in its

in ancy, and the number o RTB advertisers is relatively small,

so without enough advertisers competing to reach the same

user, a lucky advertiser could get the ad space or below

market value.

Ensuring HighPublisher eCPMwith RTB


20/40

20 P M c 2010

Increased Bidders Drives Value of Ad Space

V a

l u e o

f a

d s p a c e

Number of bidders

In order to ensure there are enough bidders to keep the value o the

publishers ad space high, PubMatics Ad Auction Engine brings the

greatest number o bidders together in a real-time auction or every

impression.

Three Categories of Buyers

1. Ad Price Prediction from nets and exchanges

2. Direct Sold Insertion Order Consideration

3. Bids from RTB demand partners

Highest overall price wins

Ad Auction Engine


21/40

P M c 2010 21

When advertisers nd the user they want to reach, they are willing

to pay a high price to reach that userbut they still want to pay the

least amount possible in order to reach that user. PubMatics Ad

Auction Engine does not allow any real-time bids to win an auction

unless the bid is high enough, as shown in Example 3.

Example 3: The Ad Auction Engine Process Works For Every Impression

Ad Auction Engine

An RTB bid only wins if it beats the pricing coming from PubMatics Ad Price Prediction anddirect sold insertion orders that a publishers direct sales team entered into PubMatics system.

In this example, the real-time bid of $3.05 bid did not win. Instead a non-RTB enabled ad

network was willing to pay the most for the ad space.

RTB Bids are often NOTthe highest paying option

Overall highestpriced ad is selectedand served

1 Ad Price Prediction from non-RTB nets and exchanges

Proprietary machine learning algorithmspredict pricing from the majority non-RTBenabled ad networks and exchanges

Ad Net 1$2.22

Ad Net 2$3.21 $3.21

$3.21

Ad Net 3$1.75

Exchange 1$1.45

2 Direct Sold Insertion Order Consideration Non-guaranteed CPM and CPC insertionorders sold by the publishers sales forcecompete for the ad space

Flat CPMCampaign

$2.00

Flat CPMCampaign

$1.50

CPCCampaign

$1.70

3 Real-Time Bidding (RTB)

Real-time bids from the largest pool of RTBenabled demand partners including DSPs, adnetworks, and exchanges

RTBExchange 1

$2.50

DSP 1$2.70

DSP 2$3.05

DSP 3$1.70

$2.00 Publisher

$3.05

CPCCampaign

$1.40


22/40

22 P M c 2010

Due to the act that there are ar ewer RTB enabled demand

partners than non-RTB ad networks and exchanges, in most cases

an RTB bidder is not selected to serve an advertisement. In the

cases where there are no RTB bidders competing or the publisher

impression, PubMatic selects the highest paying ad network or

exchange using the proprietary Ad Price Prediction process, or

chooses to show an ad rom a direct sold insertion order i it is the

highest priced ad available.

The Ad Price Prediction process is power ul technology that was

developed over the course o several years by PubMatics 40+ ulltime engineers. Download the white paper dedicated to Ad Price

Prediction to learn more, which can be ound at http://www.

PubMatic.com/technology/whitepapers .

The majority o RTB transactions that PubMatic acilitates on

behal o the publisher are received rom companies that have their

own campaign optimizing algorithms working the bene t o the

advertiser. For example, when a DSP is working on behal o anadvertiser, the DSP continually adjusts its pricing during the course

o the campaign in order to reach the right audience at the lowest

cost to the advertiser. However, PubMatics Ad Auction Engine

keeps ad prices high or the publisher by bringing together the

greatest number o demand sources or each impression, and as a

result, real-time bidders o ten have to increase their bids i they are

to win the impressions they want.

PubMatics Ad AuctionEngine keeps ad priceshigh or the publisherby bringing togetherthe greatest numbero demand sources oreach impression, andas a result, real-timebidders o ten haveto increase their bidsi they are to win theimpressions they want.


23/40

P M c 2010 23

Example 4: The Ad Auction Engine Competitive Environment Encourages Higher Bids from RTB Partners

RTB enabled demand partners fine tune their bids during the course of a campaign.If they continually lose auctions due to low pricing, they will increase their bids.

In this example, the real-time bid did win after increasing the bid price to reacha specific audience.

Overall highestpriced ad is selectedand served

1 Ad Price Prediction from non-RTB nets and exchanges

Proprietary machine learning algorithmspredict pricing from the majority non-RTBenabled ad networks and exchanges

Ad Net 1$2.22

Ad Net 2$3.21

Ad Net 3$1.75

Exchange 1$1.45

2 Direct Sold Insertion Order Consideration Non-guaranteed CPM and CPC insertionorders sold by the publishers sales forcecompete for the ad space

Flat CPMCampaign

$2.00

Flat CPMCampaign

$1.50

CPCCampaign

$1.70

CPCCampaign

$1.40

3 Real-Time Bidding (RTB) Real-time bids from the largest pool of RTBenabled demand partners including DSPs, adnetworks, and exchanges

RTBExchange 1

$2.50

DSP 1$2.70

DSP 2$3.50

DSP 3$1.70

$2.00 Publisher

$3.50

$3.21

$3.50

Ad Auction Engine

It could be several years or longer be ore there are enough real-

time bidders to ensure high pricing or the publisher. However,

PubMatic is connected to the greatest number o RTB demand

partners o any sell side plat orm.


24/40

24 P M c 2010

How the RTB Process Works For Each Impression

Ad Auction Engine

1 Page request andad call requestgoes to PubMatic

2 PubMatic sendsdata to RTB demandpartner pool

3 Demand partners returnbids in real-time (lessthan 75 milliseconds)

4 Highest RTB bid isentered into overallbidding competition

Ad Price Prediction from non-RTB nets and exchanges

Direct Sold CPM and CPC Insertion Orders

The highest RTB bid is only acceptedIF it is higher than all the non-RTB adnets and Direct sold insertion orders thatare included in the Ad Auction Engine

+ more

Representative list

It is critical to include as many RTB partners as possible in order

to have the RTB partners increase the percentage o wins they

have within the Ad Auction Engine process. The number o

demand partners that are plugged into PubMatics API or RTB is

continuing to grow at a ast pace and is nearly our times what it

was just six months ago. The increase o RTB demand partners

will help to increase bid prices, but the Ad Auction Engine

remains a key part o the bidding process in order to get themost quali ed advertisement at the highest price possible or

the impression.


25/40

RTB Targeting *

728x90 27%

57% 43%

57% 16%300x250

160x600and other sizesInternet Explorer

Firefox

Chrome

8 a.m. 8 p.m.

Safari

Others

47%

71 %

33%12%4%4%

8 p.m. 8 a.m.

29%

32%12%

15%41%

*December 2009, USA averages, PubMatic


26/40

Filling Impressions By The Numbers

Ad Auction Engine

650 Million PublisherImpressions =

650 Million Auctions

PublisherCategory: News and Reference

Monthly Impressions: 650 Million

Ad Price Prediction From non-RTB ad nets

and exchanges

Real-TimeBidding (RTB)

63%Win Rate

4%

DSPs

24%

Audience27%

Contextual

6%

Local

31%

Ad Nets

58%

DSPs Ad Exchanges

84%

CPM

CPC

8%

Ad Exchanges

31%

International

18%Win Rate

19%Win Rate

The chart represents an actual PubMatic publisher in December 2009. Every impressionthat PubMatic facilitates goes through The Ad Auction Engine. The percentages representwhere the highest paying ads are coming from.

11%

16%

Direct SoldNon-GuaranteedInsertion Orders


27/40

Revenue Distribution By The Numbers

Direct SoldNon-GuaranteedInsertion Orders

Real-TimeBidding (RTB)

58%Of Revenue

4%

DSPs

30%

Audience18%

Contextual

6%

Local

29%

Ad Nets

61%

DSPs

10%

Ad Exchanges

87%

CPM

13%

CPC

9%

Ad Exchanges

33%

International

27%Of Revenue

15%Of Revenue

This chart represents the same publishers data from December 2009. While RTBwas only responsible for filling 18% of the impressions that came through PubMatics

Ad Auction Engine, it actually represents 24% of the publishers revenue that did.

Ad Auction Engine

650 Million PublisherImpressions =

650 Million Auctions

PublisherCategory: News and Reference

Monthly Impressions: 650 Million

Ad Price Prediction From non-RTB ad nets

and exchanges


28/40

28 P M c 2010

Ensuring RTB DataSa ety And BrandProtection

Real-time bidding has the potential to bring signi cant

revenue li t to publishers, but RTB is not without its own

brand control and data sa ety risks. Publishers need to

understand that RTB was originally developed or the bene t

o the advertiser, and there ore publishers should consider

an RTB partner that is a strict publisher advocate and has

the tools to protect the publisher.


29/40

P M c 2010 29

There are ve key considerations that publishers should be thinking

about when selecting a partner or RTB:

Getting The Right Demand Partners From The Start1

Prevents Most Hassles

As most publishers know, not every ad network or advertiser iswell intentioned. A strict RTB partner vetting process should berequired based on the objectives o the publisher.

A publishers RTB sell side partner should en orce demandpartners and advertisers to:

Meet the minimum RTB technical requirements or ad

speed and data sa ety so that latency and brand control isnot a problem

Actively bid on the RTB plat orm and meet a minimum

number o bid wins each month to ensure that no datasquatters on the plat orm

Comply with regular auditing o data that is collected vs.

dollars spent on bidding

PubMatic, or example, has set up a strict Trusted PartnerProgram or RTB and will proactively remove demand partnersthat do not meet the high expectations set in the agreement.

The Publisher Should Set The Rules Around What Data Is2

Passed And Have A Way To En orce Those Rules

The publisher owns their own data and publishers needthe ability to set rules around which data they pass to aspeci c bidder. In some cases ad networks or other demandpartners will try to collect more in ormation than is needed

or the campaign. Publishers should have a way o protectingthemselves rom data the t.


30/40

30 P M c 2010

For example, Data Firewall , is a proprietary product developedby PubMatic that:.

Gives publisher total transparency about what data is beingpassed

Identi es pixels and tracks i ad network or advertiser is

putting pixel on publishers without permission

Automatically alerts a publisher when demand partners go

beyond normal targeting

Screening Ads In Real-Time Process Helps Prevent3

Unwanted Ads

Ensuring creative control can be di cult. A publishers sellside plat orm partner should have a creative screening o alladvertiser creative on the publishers site available to view inreal-time. Ideally, the sell side plat orm has this process builtinto their UI so that when the publisher logs in they can see thecreative that is being shown on their site at that moment.

In order to provide the publisher with a snapshot o what adsare going across their site, or sites, at any given moment,PubMatic o ers publishers a Live Creative Dashboard that:

Takes regular screen shots o publisher website in 5-60

minute intervals

Emails screen shots to PubMatics Creative Services Team

Traces URLs re erred to during ad serving

Reduces manual work o reloading ad tags or checking

creative


31/40

P M c 2010 31

Preventing Unwanted Malware Is Key to A Good User4

Experience

For the most part, RTB advertisers do not use malware simplybecause the cost o RTB campaigns are too expensive to wasteon such advertising. However, it can happen and an extrasa ety net should be available to ensure that publishers havemaximum sa ety.

There are now products available or publishers that:

Automatically scans all ad tags

Proactively and quickly identi y any potential malware

Alert the publisher i there is a security breach

Send an email detailing ad calls + URL/Ad Network

mapping

Publishers have the option o using the products themselves orpartnering with a sell side plat orm such as PubMatic that has itbuilt in as part o the service.

Loading Speed Should Never Be An Issue5

Part o a good user experience is ast loading pages. A globaldata center ootprint ensures that demand partners return bidsin milliseconds to ensure positive end-user experience.

Publishers may consider asking their partner about the locationo data centers, and ask about:

Speed delivery times

How o ten the speed time is monitored

Whether or not a third party company veri es the

speed time


32/40

32 P M c 2010

Publisher Results Using PubMatic to Participate inRTB Campaigns

It is critical to include as many RTB partners as possible in order to

have the RTB partners increase the percentage o wins they have

within the Ad Auction Engine process. PubMatic has been live

with real-time bidding since February 2009, and as the rst sell-

side plat orm to market with RTB, has been care ully monitoring

the results. PubMatic publishers participating in a xed minimum

number o real-time bidding campaigns in 2009 saw an average

eCPM boost o 64%.

Average Publisher eCPM

+ 64%

+ 70%

+ RTB

WithWithBefore

I n d e x


33/40

P M c 2010 33

The ollowing case studies represent PubMatic publishers that have

been actively participating in RTB campaigns or at least 6 months

to ensure revenue li t was consistent and stable. The eCPMs refect

the averages be ore using PubMatic, the average using PubMatic

without RTB, and using PubMatic with RTB.

Publisher RTB Case Study 1

+ 106%eCPM

+ RTB

WithWithBefore

Category:Entertainment

Reach:21 million uniquemonthly users

Publisher RTB Case Study 2

+ 36%eCPM

+ RTB

WithWithBefore

Category:News and Reference

Reach:

6 million uniquemonthly users


34/40

34 P M c 2010

I advertisers want real-time bidding, publishers should think

about real-time selling. And in 2010, we will see more publishers

dipping their toes into the RTB pool as they realize its potential to

connect them to more great brand advertisers and the opportunity

to improve eCPMs or their valuable audiences as well as or their

harder to sell inventory.

While a hand ul o media companies have shut out ad networks orreplaced third parties with homegrown networks, many success ul

publisherswith great brands, experienced ad sellers and the latest

technologystill struggle to ll 50% or more o their inventory.

We have a very high touch sales organization, an executive o

one major publisher says, and there has tended to be a bias

against networks and exchanges. In spite o intense debate in the

company, they have committed to testing. Some o our inventory is

currently biddable on exchanges through our optimizer, and were

excited about introducing RTB, he says, adding that early tests

seem promising.

He urges publishers to catalog and share successes and best

practices. Every publisher should be testing and getting ready or

the day when RTB will become the norm. Otherwise, even now,youre just leaving money on the table.

On the buy side, Anthony Rhind, Co-CEO, Havas Digital, recently

told CMO.com, Buying at the impression level, as opposed to the

placement level, allows segmentation strategies to be executed with

greatly reduced waste. O course, segmentation must be in ormed,

Con clusionBy Bennett Zucker


35/40

P M c 2010 35

so with impression buying comes the need to use data to pro le

impressions to realize that segmentation. This is where the usion

o contact/customer data with campaign data, site data and pro le

data becomes critical to directing trading strategies. This is an

extremely exciting area or our industry, with major implications or

our ability to drive clients business volumes that are attributed to

digital media.

As RTB continues to grow, publishers may earn more or their

inventory while also gaining insights into their audiences value

that was previously available primarily to the networks. Adding up

the possibilities, there may be good reason to expect a ve- old

increase in RTB volume this year. As PubMatics co ounder & CEO

Rajeev Goel cautions, Real-time bidding is still in its in ancy, but it

is gaining momentum every day. Publishers cant a ord to stay on

the sidelines and let somebody else gure it out and take home the

growing tide o RTB advertising dollars.

Publishers cant a ord tostay on the sidelines andlet somebody else gureit out and take homethe growing tide o RTBadvertising dollars.

Rajeev GoelCeo, PubMatiC


36/40

36 P M c 2010

About PubMatic:

Our Mission : To provide publishers with the greatest control o

their ad revenue and brand.

What We Do : PubMatics Ad Revenue Optimization solution

combines real-time ad decision technology with local service

around the world to provide global publishers a holistic ad

monetization plat orm. PubMatic ensures that online publishers

get the most money rom their advertising space by leveraging

advanced, proprietary technology to decide in real-time which

demand source can best monetize each impression. PubMatic

also o ers brand protection, comprehensive analytics, mobile

plat orm optimization, and ad operations supports or the Webs

premium publishers.

Some o the worlds most respected online publishers have chosen

to work with PubMatic, including The Hu ngton Post, eBay, United

Online, TV Guide, and the majority o the ComScore Top 10.

www.PubMatic.com

Contact Us

Online publishers interested in working with PubMatic should contact:

[email protected]

Ad networks interested in working with PubMatic should contact:

[email protected]

Copyright 2010 PubMatic. All rights reser ved. PubMatic, PubMatic logo, Ad Auction Engine, Ad Price Prediction, Data Firewall, Live Creative Dashboard, and TrustedPartner Program are trademarks o PubMatic or its a liates in the U.S. and other countries.


37/40


38/40

38 P M c 2010


39/40


40/40

Contact Us:

Phone: (646) 706-7171

Publishers contact: [email protected]

Ad Networks contact: [email protected]

For General In ormation: in [email protected]

Cali ornia O fce:

444 High St.h l

New York O fce:

444 Broadwayh l

PubMatic RTB White Paper

Documents

Transcript of PubMatic RTB White Paper