Talk by satish kadu, komli @Ad tech, Delhi, 2012

1. Display 2.0 – Arrival of Real Time Bidding
Satish Kadu
VP & Business Head (ATOM), Komli Media Ad:tech, 2012

2. 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
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3. Display 1.0 = दखावा ?
High on Promise,
But Low on Delivery…
3 KOMLI CONFIDENTIAL

4. Display 1.0 = दखावा ?
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
impression’s likelihood to serve
campaign objective – based on TG fit,
intent, context etc.
 Every impression is unique! Why not
“pay per impression” instead of CPM!
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5. Display 1.0 = दखावा ?
One Price For Inefficient
All ? 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.
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6. Display 1.0 = दखावा ?
One Price For Inefficient
Lack of Scale
All ? Targeting!
 Operating across disparate ad
platforms leads to
 Audience Duplication
 Lack of scale for re-targeting
 Loss of cross channel
attribution
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7. Display 1.0 = दखावा ?
One Price For Inefficient Low
Lack of Scale
All ? Targeting! 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
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8. Display2.0… Real Time Bidding
Justice Delivered… ताबडतोब
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9. 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
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10. Display 2.0 Value Chain with RTB
Publishers
Advertisers
Ad Networks
Publishers Ad Exchange/
RTB
SSP Enabled Agencies
Ad Exchange/ Ad
Publishers SSP Platform
Ad Networks
Ad Networks
Publishers
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11. How the RTB magic works?
User browses a
web page
Entire
process is
Optimized ad Bids called for
completed
delivered in less than RTB auction
50ms!
Winning bid
accepted
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12. Optimum Bid-Value Decision using Predictive Models
Probability of
RTB Bid Success Campaign
Target
Value (Desired Action – X
e.g. Click, Lead (e.g. CPC, CPA)
Conversion)
Machine Learning models analyzing Terabytes of data queried in real time
CPC Goal Rs. 10
Scenario 1: Scenario 2:
Impression happening in rush hour Impression happening at leisure
Click probability = 10% Click probability = 80%
Fair Value = Rs. 1 Fair Value = Rs. 8
Bid = Rs. 1 Bid = Rs. 10
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13. RTB – Fundamental Shift in Display Advertising
Before RTB
Buy only impressions
that matter and pay
exactly what it’s worth!
After RTB
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14. RTB – Fundamental Shift in Display Advertising
In real-time, machine
driven bidding!
(process completes in less
than 50ms)
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15. 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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16. RTB – Fundamental Shift in Display Advertising
Same impression has
different value for
20 30 15 45 33
different advertisers!
20 30 15 45 33
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17. A New Way to Target Consumers
From ‘Buying Websites’
Drastically improved
targeting and
campaign ROI !
To ‘Buying Audience’
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18. Key Benefits to Advertisers
Precision Greater Optimize
Targeting Transparency and Campaign in
Control Real-Time
Get actionable customer Increase Delivery, Reduce
insights at impression level Wastage, Enhance ROI
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19. 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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20. Real Time Bidding is Exploding
RTB Share of Non-Guaranteed Ad Spend (US)
60%
50%
50%
$5B+
40%
30%
20% 15%
10% 5%
0% 1.5%
0%
2008 2009 2010 2011 2012+
2015E
Source: PubMatic white paper
Science of Search Advertising coming to Display
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21. RTB is Super-Hero
But दे स म चलेगा या?
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22. Drivers for RTB Adoption in India
Granular audience data
is required for success
of RTB
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23. Drivers for RTB Adoption in India
Threshold scale of
demand & supply
required for efficient
price discovery
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24. Drivers for RTB Adoption in India
Standardization of rich
media ads will drive
greater demand and
auction efficiency
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25. Drivers for RTB Adoption in India
Prediction Quality in
Programmatic Buying
(low win volume vs.
winner’s curse)
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26. ATOM – India’s 1st RTB enabled ad platform
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27. ATOM 2.0 – Reach Precise Audience at Scale
Access Massive Inventory Target Specific Audiences
Increase Transparency & Control Improve Delivery & Optimization
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28. RTB – A Case Study from ATOM
79% 71%
Advertiser
Lift in Conversion Rate Lift in Click Through Rate
An e-commerce Advertiser A Software Product Advertiser
Publisher
70%
Lift in eCPM
An Entertainment Publisher
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29. Summing Up…
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30. 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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31. RTB is surely the next super-hit Block Buster!
Come… Fall in Love… All Over Again… With Display Advertising! 
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32. Questions, Comments, Feedback, Discussions
Thank you!
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