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Data & RTB The role of data in programmatic online advertising

Hinweis: Die folgenden Informationen sind ausschließlich zu Präsentationszwecken gedacht. Keine Weitergabe an Dritte.

Oliver Pracel / November 2016

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The market for big data.......

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Why online advertising ????

Can’t find many (young) people anywhere else

Tracking / reporting

Interaction (Feedback channel)

“TARGETING”

Data

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Buying ad space should be simple.....

Advertiser Publisher

AD

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......but it isn‘t.....

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RTB vs traditional buying of online ads

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The RTB Eco system

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......the reality is rather complex.....

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Data

• anonymous information about a user (browser)

• Stored in a cookie

• Is THE criteria which defines how much buyers

bid on each impression

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Data defines the bid for each impression !!

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Where does „data“ it come from ?

Quelle: Yahoo interne Daten, weltweit

S E A R C H

D E M O -

G R A P H I E C O N T E N T S O C I A L

E - M A I L A D - K L I C K S

M O B I L E

U S A G E

C R O S S D E V I C E

I D E N T I T Y

R E G I S T R A T I O N O F F L I N E I N F O G E O G R A P H Y

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Types of data

Behavioral/

Content

browsing

Search Campaign

specific

(interaction)

Registration/

Self declared Offline

CRM GEO

Browser

Interest Intent

“Branding” “Performance”

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How DATA defines the bid of the BUYER in RTB

• Searched for

“flights to

Berlin”

yesterday

• No info on the

user

• Male

• 30-39

• Interested in

travel

Google

Rubicon

Pubmatic

Bid: $5.00

Lufthansa

campaign

DSP No bid

Bid: $0,70

„Flights to

Berlin from 149

EUR“

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The SELLER gets the price of a 2nd price auction

1 Ad Impression

2.10 EUR

1.70 EUR

0.85 EUR

1.711EUR

Advertiser CPM Winning price Publisher

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Data: buy audiences, not placements

More relevant ads

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...RTB is about finding the audience- wherever it may be…....

DSP

S S P s

E X C H A N G E S

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1 – 2 – 3nd party....?

2 n d P A R T Y

D A T A

3 R D P A R T Y

D A T A

1 S T P A R T Y

D A T A

C L I E N T D A T A D A T A -

A G G R E G A T O R S

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Offline data:

untouched treasures to be set free !!

Offline

CRM

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Most client data is stored offline

30% 70%

More detailed data !!

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Offline data can be onboarded via DB match – typical identifier is email address

Publisher Advertiser

Privacy laws compliance!!

• MATCH

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Promises of RTB

Automisation of costly processes

More efficient buying for advertisers

Better monetisation for publishers

“Better” ads for users

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Concerns about RTB

Brand safety Fraud/ Bots Viewability Too many middle

men

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Only 40% of advertiser spend ends up with the

publisher !!!!!

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Why RTB should bring prices up.....

Cherry picking through data usage

Private market places/ Preferred

deals

Viewability targeting

Header bidding

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Some big trends in digital media

Automatisation of processes

The rise of mobile advertising

Cross device targeting

Native advertsing

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Click rate – still misunderstood

• It’s the only metric which is immediately available

• it is not an indicator for a better conversion rate

• It is not a valid KPI for branding/awareness campaign

• “Click in the head” is often more relevant

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Thank you....!!