Group 8Chanchal Subhash 1212013Harkawaljit Singh 1212019Iqbal Khan 1212021Sandip Jalan 1212047

Efficient Mechanisms for Mobile Advertisements

AGENDA

IntroductionWhat is Mobile Advertising?Mobile Advertising – EcosystemSteps to launch a Mobile Ad CampaignPricing Models Comparison

Pricing Strategy RecommendationsFactors Influencing PricingCost Per MilleCost Per ClickCost per Install

Real Time Bidding

WHAT IS MOBILE ADVERTISING?

Source : Crispmedia.com

ECOSYSTEM

publisher

advertisers

What’s in for PublisherMonetize its Applications developed on Android, iOS,

Microsoft OSGet Advanced analytics and transparency of the visitsCross selling opportunity to promote its own apps or

websites

What’s in for advertisersMobile is increasing as a platform for communication, and has

acceptance equivalent to that of TV or onlineMore efficient campaign runs on mobile, and enable targeted

campaignMeasurable matrix and analytics to gain insights and transparency

of the channel

What’s in for Ad-NetworkBy managing inventory of demand and supply, targeted

advertisement and gain revenue through brokeragePromote rich media formats including native content to

become ad-network of choice both for publisher and advertiser

STEPS TO LAUNCH A MOBILE AD CAMPAIGN1. Basics: Choose your campaign, budget and schedule2. Objective: Choose your advertising objective

Promote Apps Generate Leads Promote Content Generate Awareness

3. Target: Choose your audience Region / Location Devices Customer Age Schedule Others

4. Pricing: Choose how you want to bid for your ads CPC CPM CPA/CPI

5. Content: Create your ad

PRICING MODEL (BID TYPES)

Pricing Models

Cost per mille (CPM): This bid type is best for getting people to view your ad Cost per click (CPC): This bid type is best for getting people to click your adOptimized cost per mille (oCPM): This bid type is best for showing your ad to the people who are most likely to take action on your ad. For example, liking your Page or clicking a linkCost per Install (CPI): When available, this bid type is best for getting people to take action on your ad [CPI = spend ÷ (number of install)]Effective Revenue Share (ERS): This bid type is best if you have a revenue goal. For example - purchases on the advertiser's site [ERS = (spend ÷ revenue) × 100]Return on Advertising Spend (ROAS): This bid type is best if you have a revenue goal. For example - purchases on the advertiser's site [ROAS = (revenue ÷ spend) × 100]

FACTORS INFLUENCING PRICING

• Advertiser’s Needs– Advertiser’s need will decide on what kind of pricing will attract the advertiser

• Publisher’s goals– Publisher will have his own revenue maximization goals which can be used to

define filters

• Revenue maximization considering uncertainties– The Ad network need to account for the fact that not all ad displays will yield

the same revenue and hence need to optimize to increase revenue

• Looking for awareness of Product / Brand• Looking for maximum impressions in specified

timeslot• Want the user to actually see the impression• Want users to believe in the impression

Advertiser Needs• Higher bids allow faster impressions• Impact of impression depends on

placement, type and size of property• Impact also depends on the trust placed

in the hosting site and availability

Influencing factors

CPM (COST PER MILLE) BIDDING

Suggestions for Ad-Networks• Show details of the bid keeping it anonymous: To encourage user to put in actually what he is

ready to pay• Winner will have to pay one cent more than the second highest bid : To prevent user from

experiencing winner’s curse• Indicate to user the time needed to reach target exposure with given bid: To allow non aggressive

users to bid lower and aggressive ones to bid higher• Type of property must be a filtering criteria : To provide better yield for better types of property• Time of exposure must be filtering criteria: To provide better yield for properties with higher

exposure time• Rating of hosting site: To ensure the reliability of the impression actually happening

• Want the user to investigate the product• Not sufficient to see, Must generate

interest• If possible generate leads

Advertiser Needs• Higher bids will mean more leads in

lesser time• Quality of leads important• Reduce cost per lead

Influencing factors

CPC (COST PER CLICK) BIDDING

Suggestions for Ad-Networks• Reserve high visibility properties for CPC based ads• Have cross bidding between CPM and CPC with a factor reduction on CPC bid to account for

probability of click.• Think about linking CPC with CPI

• Pay only for Conversions• Minimize total cost of advertising• No need to worry about creative

Advertiser Needs• Cost per install as percentage of average

sale amount• Ability to infer acquisition

Influencing factors

CPI (COST PER INSTALL) BIDDING

Suggestions for Ad-Networks• Allow easy creative creation to increase probability of conversion• Have filters / entry criteria when offering CPI• Conversion should be measureable e.g. App download• Use CPI as proof of value creation by the ad-network, but charge as CPC

REAL-TIME-BIDDING

REAL TIME BIDDING (RTB) VALUE CHAIN

Buy Side Infrastructure and Delivery Sell Side

PUBLISHER

SUPPLY SIDE PLATFORM (SSP)

Ad EXCHANGE

Ad NETWORK

Advertisers DEMAND SIDE

PLATFORM (DSP)

MEDIA AGENCY

Source: http://www.siemer.com/

Publisher/ Visitor Profile

Bidding for this Publisher/ Visitor Highest bidder gets to display its Ad to this Publisher/visitor

Real-Time-BiddingWhat is RTB ?• Real-time bidding (RTB) refers to the means by which ad inventory is bought and

sold on a per-impression basis, via programmatic instantaneous auction.• Advertisers bid on an impression and, if the bid is won, the buyer’s ad is instantly

displayed on the publisher’s site

How RTB works ?• A typical transaction begins with a user visiting a website. This triggers a bid request

that can include various pieces of data such as the user’s demographic information, browsing history, location, and the page being loaded

• The request goes from the publisher to an ad exchange, which submits it and the accompanying data to multiple advertisers who automatically (programmatically) submit bids in real time to place their ads

• The impression goes to the highest bidder and their ad is served on the page

Limitations of mobile RTB• No universal cookie for mobile as there is for PCs, so the principal means by which

ad networks can track and target users is not available• Ad networks have to use other means to reach the target audience like contextual

data supplied by the publisher (i.e. about the nature of the site and audience), and use smart algorithms to figure out the user profiles

What are the benefits for publishers?• Delivers higher revenues on inventory through opening that inventory to a

buying market designed to maximize the value of each individual impressionWhat are the benefits for ad networks ?• Better revenues in revenue share models as Publishers get better revenues

with RTB• Increased control over campaign performance• Increased spending efficiencies• Better results delivered for clients What are the benefits for advertisers?• Enhanced consumer targeting capabilities• More cost effective reach and frequency• Near elimination of wasted impressions and ad dollars

BENEFITS OF REAL-TIME-BIDDING

RTB is clearly outperforming traditional ad buying with application to mobile advertising.

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