How Mobile Advertising is Evolving | Natalie Portier

1. © 2017 Appodeal Inc.© 2017 Appodeal Inc.
Evolution of Mobile
Advertisement
HOW DID WE GET HERE?
WHAT’S NEXT?

2. © 2017 Appodeal Inc.
4500 Publishers
29K Apps
130MM MAU
9B Impressions per month

3. © 2017 Appodeal Inc.
1st Generation
THE TRADITIONAL
WATERFALL

4. © 2017 Appodeal Inc.
Traditional Waterfall
Network A
Network B
Network C
Ad Fill OrderFirst Last
Ads’
eCPMs
Low
High

5. © 2017 Appodeal Inc.
Inaccurate historical data
Higher eCPM ads may be skipped
No performance breakdown
Traditional Waterfall: Downsides

6. © 2017 Appodeal Inc.
2nd Generation
AD PLACEMENTS +
FREQUENCY CAPS

7. © 2017 Appodeal Inc.
Ad Placements and Frequency Caps
1st Tier
WATERFALL
Ad Fill OrderFirst Last
Ads’
eCPMs
Low
High
Ad Fill Order LastFirst
Ads’
eCPMs
Low
High
Ad Fill OrderFirst Last
Ads’
eCPMs
Low
High
2nd Tier
WATERFALL
Leftover Tier WATERFALL

8. © 2017 Appodeal Inc.
Better value for supply and demand
Lower eCPM networks
enter the waterfall
2nd Generation: Advantages

9. © 2017 Appodeal Inc.
Inaccurate historical data
Higher eCPM ads may be skipped
No performance breakdown
2nd Generation: Downsides

10. © 2017 Appodeal Inc.
3rd Generation
STATIC PRICE
FLOORS

11. © 2017 Appodeal Inc.
Ad Fill OrderFirst Last
Price Floor
(Hard)
Ads Not Considered
Ads’
eCPMs
Low
High
3rd Generation: Static Price Floors

12. © 2017 Appodeal Inc.
3rd Generation: Static Price Floors
Ad Fill OrderFirst Last
$15
Price Floor
(Hard)
Ad Placement Gets Unfilled
NoBid
Ads’
eCPMs
Low
High
$15
Price Floor
(Hard)
Ad Placement Gets FIlled
Ad Fill OrderFirst Last
Ads’
eCPMs
Low
High
iOS USA users in SF and NYC iOS USA users elsewhere

13. © 2017 Appodeal Inc.
Soft Price Floor
Ad Fill Order LastAd Fill Order
Ads’
eCPMs
Low
High
Ad Fill Order LastFirst
Ads’
eCPMs
Low
High
Ad Fill Order
Ads’
eCPMs
Low
High
$7 eCMP
$6 eCMP
$3 eCMP
$7.02 eCMP
$6.83 eCMP
$2.15 eCMP
Historical Data Price Floors

14. © 2017 Appodeal Inc.
Flat Waterfall
Ad Fill OrderFirst Last
Ads’
eCPMs
Low
High
Multiple Positions
FLAT WATERFALL

15. © 2017 Appodeal Inc.
Flat Waterfall: Advantages
Historical data inaccuracy defeated
Multiple positions in waterfall

16. © 2017 Appodeal Inc.
Flat Waterfall: Downsides
Inflating bid inefficiency
Slow app performance

17. © 2017 Appodeal Inc.
4th Generation
DYNAMIC PRICE
FLOORS

18. © 2017 Appodeal Inc.
Ads’
eCPMs
Low
High Winner
Fills Impression
No Fill
(Too Expensive)
No Request
No Request
No Request
PriceFloorEntry
(NotActualBid)
Ad Fill Auction OrderFirst Last
$12
$10$10.20
$9
$5
$11.30
Actual Bid Would’ve Entered At the $10 Price Floor
Waterfall with Static Price Floors
4th Generation Dynamic Price Floors

19. © 2017 Appodeal Inc.
4th Generation Dynamic Price Floors
Ads’
eCPMs
Low
High Winner
Fills Impression No Request
No Request
No Request
Ad Fill Auction OrderFirst Last
PriceFloorEntry
(NotActualBid)$10.01
$9.01 $9
$5
$11.30
$10.20
$5.01
No Request
No Request
Actual Bid Enters At the $10.01 Price Floor
Waterfall with Dynamic Price Floors
Actual Bid = $10.21
$10.21

20. © 2017 Appodeal Inc.
4th Generation Dynamic Price Floors
Dynamic price floors win
Same impression for less
Ensure high value placements
Slow app performance

21. © 2017 Appodeal Inc.
The Next Generation
SOFT HEADER BIDDING

22. © 2017 Appodeal Inc.
Simultaneous Ad Requests
Ad Networks
Ad Mediator
Header Bidding
The Next Generation: Soft Header Bidding

23. © 2017 Appodeal Inc.
Ads’
eCPMs
Low
High
VS
$10
Price Floor
$17
Soft Bid $15
Soft Bid
-20%
+5%
The Next Generation: Soft Header Bidding
1 2

24. © 2017 Appodeal Inc.
VS
$10
Price Floor
$13.60
Likely
Actual Yield
$15.75
Likely
Actual Yield
Ads’
eCPMs
Low
High
-20%
+5%
Soft bid $15
The Next Generation: Soft Header Bidding
3 4

25. User Opens
App
All Ad Network
SDKs are
Activated
Ad Mediation
SDK is Activated
Ad Mediation SDK
Sends Request to
Ad Mediation
Server
1 2 3 4
© 2017 Appodeal Inc.
Soft Header Bidding Workflow

26. BID
BID
BID
BID
BID
BID BID BID
Ad Mediation Server
Conducts an OpenRTB
Auction and Accepts
Soft or Hard Bids from
Ad Networks
Ad Mediation
Server Selects
Winning Bid and
Reports It Back to
Ad Mediation SDK
Ad Mediation SDK
Requests Winning Ad
Network SDK to Cache
the Ad
Winning Ad
Gets Displayed
5 6 7 8
AD
© 2017 Appodeal Inc.
Soft Header Bidding Workflow

27. © 2017 Appodeal Inc.
No more waterfalls
Efficient and fair bidding
Fast app performance
The Next Generation: Soft Header Bidding

28. © 2017 Appodeal Inc.
Learn more on how to
implement soft header
bidding:
hi@appodeal.com