PubMatic ( www.pubmatic.com ), the digital media platform company for publishers, today released a white paper: PubMatic Multi-Bid RTB White Paper 2012: The Advantages to Publishers, Advertisers and the Ecosystem of a Multi-Bid RTB Environment. The paper asserts that a multi-bid RTB environment would benefit the ecosystem by delivering more relevant ads served as a result of more informed ad allocation decisions. Buyers would have a better chance of realizing their budgets and reducing lost opportunity scenarios. And premium publishers would receive maximum monetization for each ad sold due to higher-volume demand.
Written by Manish Tayal, Ph.D., VP of Analytics and Algorithms for PubMatic, the white paper examines frustrations experienced by both buyers and publishers and the limitations inherent in the current RTB environment. They include the insufficient supply of inventory to fulfill buyer requirements, volatile pricing and sell-through trends that affect publishers’ monetization strategies and the legacy systems that inhibit advances in technology.
“The essence of programmatic buying is liquidity and we just don’t have it despite the rapid growth of RTB,” says Rajeev Goel, Co-Founder & CEO of PubMatic. “There are thousands of brands that buy programmatically, yet all those buys happen through less than 50 to 60 DSPs where only one bid is allowed through each system at a time.”
The problem of advertiser liquidity and publisher revenue limitations can be solved by an advanced technology platform through which the industry can move towards a joint (advertiser and publisher) optimal ad allocation decision for each impression, all the while taking into consideration seller and buyer preferences and incentives. Specifically, a multi-bid platform would enable DSPs to provide multiple best offers or “bids” from various advertisers instead of a single best offer.
“Such a platform would overcome the limitations of single-bid RTB as it is today, encourage the growth of private marketplaces, and maximize overall monetization value per impression for the benefit of the entire eco-system,” says Brendan Moorcroft, Global CEO, Mediabrands Audience Platform and Cadreon.
“Furthermore, advertisers and agencies would be equal advocates in the joint decision for each ad allocation per impression while effectively utilizing block lists and partner prioritizations and rules,” concurs William Doherty, Director of Business Development, Netmining.
A multi-bid RTB environment motivates publishers to provide higher access and transparency to their premium inventory in return for better monetization via multiple offers from bidders, while the technology platform provides the controls to manage sales channels, protect brand value and maximize pricing value.
“The level of discretion we will have in terms of creating robust block lists, volume control, and pricing terms is very exciting – our Private Marketplace strategies will continuously become more and more robust,” says Michael Kuntz, Executive Director, Digital Sales, Rodale.
Increasing the flow of higher quality inventory is one of the most important aspects of the multi-bid scenario. Based on PubMatic’s machine learning and analytics, buyers would end up having a much higher chance of winning the premium inventory with between 5 to 10 bids per impression per DSP instead of a single best offer.
The PubMatic Multi-Bid RTB environment comes during a period of dramatic growth in terms of product development and international expansion for the business. The company recently announced the launch of its newest data center in Singapore. Additionally, in November, PubMatic was ranked the Fastest Growing Online Advertising Company in the US Internet Sector, 20th Fastest Overall in North America, on Deloitte’s 2012 Technology Fast 500(TM). To read the full white paper, please visit www.pubmatic.com/reports .
Netmining is a leading provider of real-time targeting solutions designed to help marketers understand and reach their audiences online. We combine our own unique blend of audience planning, targeting, bidding and optimization capabilities to deliver exceptional campaign performance. Our Audience Scoring Engine translates data into customer intelligence that yields high performing and highly relevant online advertising, targeted to your customer. Clients include BMW, Audi, Mitsubishi, Pandora, CDW, Chase, Hilton, Cole Haan, Group M, OMD, Neo@Ogilvy, Universal McCann and iProspect, among others. For more information, please visit netmining.com or follow us on Twitter @netmining.
Netmining is a member of the Interactive Advertising Bureau (IAB), the Network Advertising Initiative (NAI) and the Digital Advertising Alliance (DAA).
Rodale is a global lifestyle company with a mission to inspire and enable people to improve their lives and the world around them. Through a broad portfolio of leading media properties, Rodale reaches more than 70 million people around the world through multiple distribution channels, including magazines, books, online, mobile, e-commerce, direct-to-consumer, and video. Rodale publishes some of the best-known health and wellness lifestyle magazines, including Men’s Health, Prevention, Women’s Health, Runner’s World, Bicycling, Running Times, and Organic Gardening, and is one of the largest independent book publishers in the United States with a collection of bestselling titles including Al Gore’s An Inconvenient Truth, The End of Overeating: Taking Control of the Insatiable American Appetite, Eat This, Not That!, and Flat Belly Diet! The company is also widely regarded as a digital leader in the areas of health and fitness and has launched three digital properties–Fitbie.com and YouTube channels 3V and Tasted. Rodale continues to expand its reach through an ever-growing list of award-winning mobile applications and partnerships, and is a leader in direct-response marketing with more than 27 million active customers in its database. To learn more about Rodale, visit www.rodaleinc.com .
Cadreon is a specialized marketing services platform that integrates technology, data and inventory to manage audiences for our clients. Cadreon does not arbitrage, but instead employs an audience-based model across all digitally-sourceable media. Generating deep insights about which audiences are responding to campaign messaging and/or visiting an online destination determines the optimal audiences and tactics for marketing activities over time. Cadreon is part of the Mediabrands Audience Platform. For more information please visit www.map-global.com .
Since 2006, PubMatic has been at the forefront of developing innovative technology to help publishers automate the process of evaluating and selling their advertising inventory. PubMatic ( http://www.PubMatic.com ) gives premium publishers a real-time media selling platform for managing revenue and brand strategy. PubMatic’s platform combines real-time bidding (RTB), the most comprehensive brand protection tools, unified optimization and audience insights as well as hands-on support to serve the world’s leading publishers. PubMatic is privately held, backed by funding from August Capital, Draper Fisher Jurvetson, Nexus Venture Partners, and Helion Ventures, and has offices around the world in the U.S., Europe and Asia.