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  • 8/6/2019 PubMatic RTB White Paper



    Real-Time Bidding(RTB)Fromthe Publisher Perspective

    Technical level o white paper:

  • 8/6/2019 PubMatic RTB White Paper

    2/40Published February 2010

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    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

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    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

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    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.

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    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

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    Real-time Individual Attributes

    Behavioral + Contextual


    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

    $ $ $



    (Non-guaranteed Impression Value to Advertisers)

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    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


    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


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    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)

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    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

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    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


    Significantly improved valueper impression.

    Overall eCPM lift. Greater Brand Control.


    More relevant ads. Faster page loading times.


    Better performance. Increased ROI.

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    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

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    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


    P L A T F O

    R M

    ( S S P )



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

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    14 P M c 2010

    PubMatics Role (Sell Side Plat orm)


    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.

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    P M c 2010 15

    Agency Buying Desks


    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

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    16 P M c 2010

    Demand Side Plat orms (DSPs)


    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)

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    P M c 2010 17

    Ad Networks


    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)

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    18 P M c 2010

    Ad Exchanges


    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


    AdBrite AdBrite ExchangeContextweb ADSDAQ

    Google Ad Exchange (DoubleClick)

    Microso t AdECN

    OpenX Open Exchange

    Yahoo! Right Media Exchange

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    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

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    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


    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

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    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


    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


    Flat CPMCampaign




    3 Real-Time Bidding (RTB)

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

    RTBExchange 1


    DSP 1$2.70

    DSP 2$3.05

    DSP 3$1.70

    $2.00 Publisher




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    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. .

    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.

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    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


    Flat CPMCampaign






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

    RTBExchange 1


    DSP 1$2.70

    DSP 2$3.50

    DSP 3$1.70

    $2.00 Publisher




    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.

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    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.

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    RTB Targeting *

    728x90 27%

    57% 43%

    57% 16%300x250

    160x600and other sizesInternet Explorer



    8 a.m. 8 p.m.




    71 %


    8 p.m. 8 a.m.




    *December 2009, USA averages, PubMatic

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    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









    Ad Nets


    DSPs Ad Exchanges





    Ad Exchanges



    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.



    Direct SoldNon-GuaranteedInsertion Orders

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    Revenue Distribution By The Numbers

    Direct SoldNon-GuaranteedInsertion Orders

    Real-TimeBidding (RTB)

    58%Of Revenue









    Ad Nets




    Ad Exchanges






    Ad Exchanges



    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

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    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.

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    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.

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    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


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    P M c 2010 31

    Preventing Unwanted Malware Is Key to A Good User4


    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


    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

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    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


    I n d e x

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    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



    Reach:21 million uniquemonthly users

    Publisher RTB Case Study 2

    + 36%eCPM

    + RTB


    Category:News and Reference


    6 million uniquemonthly users

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    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, 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

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    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

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    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.

    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.

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    38 P M c 2010

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    Contact Us:

    Phone: (646) 706-7171

    Publishers contact: [email protected]

    Ad Networks contact: [email protected]

    For General In ormation: in [email protected]

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