Display 2.

0 Arrival of Real Time Bidding

Satish Kadu
VP & Business Head (ATOM), Komli Media Ad:tech, 2012

Story-Line for Today

1. Display 1.0 2. Display 2.0 Real Time Bidding as the Game Changer 3. RTB and Indian Online Advertising Industry 4. Atom RTB enabled Ad Platform from Komli Media 5. Feedback, Questions, Comments

High on Promise, But Low on Delivery

Display 1.0 = ?

KOMLI CONFIDENTIAL

Display 1.0 = ?
One Price For All ?

Differential product pricing based on value is the norm everywhere. Then why one flat CPM rate for all impressions? (that lowers ROI). CPM should be based on ad impressions likelihood to serve campaign objective based on TG fit, intent, context etc. Every impression is unique! Why not pay per impression instead of CPM!

Display 1.0 = ?
One Price For All ? Inefficient Targeting!

Buying without Audience Targeting Looking for a needle in the haystack Audience data lying in various silos and in different forms. Not useful for targeting at scale.

Display 1.0 = ?
One Price For All ? Inefficient Targeting! Lack of Scale

Operating across disparate ad platforms leads to Audience Duplication Lack of scale for re-targeting Loss of cross channel attribution

Display 1.0 = ?
One Price For All ? Inefficient Targeting! Lack of Scale Low Transparency

Half of my budget gets wasted I don't know which half Blind/Opaque Buy: Lack of transparency on pricing, audience reached, inventory quality. Inability to capture customer insight and act upon it at real-time to get maximum benefit

Display2.0 Real Time Bidding

Justice Delivered

KOMLI CONFIDENTIAL

What is Real Time Bidding?

Massive Scale Display Media Auctioned on a per Impression Basis

RTB is an automated process which allows media buyers to evaluate, bid on and purchase ad inventory on a per impression basis

Display 2.0 Value Chain with RTB

Publishers Ad Networks Publishers Ad Exchange/ SSP Ad Exchange/ SSP Ad Networks Publishers

Advertisers

Publishers

RTB Enabled Ad Platform

Agencies

Ad Networks

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How the RTB magic works?

User browses a web page

Optimized ad delivered

Entire process is completed in less than 50ms!

Bids called for RTB auction

Winning bid accepted

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Optimum Bid-Value Decision using Predictive Models

Probability of Success
(Desired Action e.g. Click, Lead Conversion)

RTB Bid Value

Campaign Target
(e.g. CPC, CPA)

Machine Learning models analyzing Terabytes of data queried in real time

CPC Goal Rs. 10

Scenario 1: Impression happening in rush hour Click probability = 10% Fair Value = Rs. 1 Bid = Rs. 1
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Scenario 2: Impression happening at leisure Click probability = 80% Fair Value = Rs. 8 Bid = Rs. 10

RTB Fundamental Shift in Display Advertising

Before RTB

Buy only impressions that matter and pay exactly what its worth!
After RTB

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RTB Fundamental Shift in Display Advertising

In real-time, machine driven bidding!

(process completes in less than 50ms)

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RTB Fundamental Shift in Display Advertising

Reach precise audience!
Leveraging audience data and likelihood to convert in real time.
Right ad to the right user at the right time!

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RTB Fundamental Shift in Display Advertising

Same impression has different value for different advertisers!

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A New Way to Target Consumers

From Buying Websites

Drastically improved targeting and campaign ROI !

To Buying Audience

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Key Benefits to Advertisers

Precision Targeting

Greater Transparency and Control

Optimize Campaign in Real-Time

Get actionable customer insights at impression level

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Increase Delivery, Reduce Wastage, Enhance ROI

Key Benefits to Publishers

Revenue Maximization Every single impression auctioned to the highest bidder

Unleash the Value of your Audience

More relevant ad experience for the user

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Real Time Bidding is Exploding

RTB Share of Non-Guaranteed Ad Spend (US)
60% 50% 40% 30% 20% 10% 0% 0% 2008 1.5% 2009 5% 2010 2011
2015E 2012+

50% $5B+

15%

Source: PubMatic white paper

Science of Search Advertising coming to Display

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RTB is Super-Hero
But ?

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KOMLI CONFIDENTIAL

Drivers for RTB Adoption in India

Granular audience data is required for success of RTB

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Drivers for RTB Adoption in India

Threshold scale of demand & supply required for efficient price discovery

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Drivers for RTB Adoption in India

Standardization of rich media ads will drive greater demand and auction efficiency

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Drivers for RTB Adoption in India

Prediction Quality in Programmatic Buying (low win volume vs. winners curse)

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ATOM Indias 1st RTB enabled ad platform

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KOMLI CONFIDENTIAL

ATOM 2.0 Reach Precise Audience at Scale

Access Massive Inventory Target Specific Audiences

Increase Transparency & Control

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Improve Delivery & Optimization

RTB A Case Study from ATOM

Advertiser

79%
Lift in Conversion Rate An e-commerce Advertiser

71%
Lift in Click Through Rate A Software Product Advertiser

Publisher

70%
Lift in eCPM An Entertainment Publisher

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Summing Up

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KOMLI CONFIDENTIAL

RTB - Driving force behind Display 2.0

Ability to reach precise audience at scale. Auction-based buying reflects true market pricing. Data-driven bid optimization dramatically improves campaign performance.

If you are interested in buying on RTB, mail us at atom@komli.com

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RTB is surely the next super-hit Block Buster!

Come Fall in Love All Over Again With Display Advertising!

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Questions, Comments, Feedback, Discussions

Thank you!

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