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Implementing RTB @ Centrum.cz
About This Presentation


This is an English version of my presentation from Nov 6th 2012
at Czech Internet Forum on Centrum Holdings’ experience of
implementation of RTB. Centrum Holdings is one of the top
online publishers on Czech market and the first premium
publisher who decided to offer the ad space through RTB and
support the ecosystem. The Czech RTB market is in a very
early stage of development in fall 2012, the display
programmatic buying is dominated by Google AdWords.
What is RTB?
OpenRTB Protocol
RTB is an Open Ecosystem with Many Players
RTB: Auction of an Impression Done in 100ms
1. Offer – free impression

             MEDIA




             SSP TECHNOLOGY




             DSP TECHNOLOGY




             ADVERTISER / AGENCY



      2. Response – the bid
RTB is Efficient – Growing Fast




                              Source: PubMatic Ad Revenue Report




• RTB is efficient for both publishers and advertisers
• It grows fast and counts for 10–15 % of online display revenues today
The Situation
Opportunities




• Interesting service for the clients
• Get new client segments
• Establish market leadership
• Additional revenue stream
Threats




• Small number of advertisers
• Negative market response
• Decreasing inventory value, cannibalization of CPT business
Our Solution
Pilot – Test the Technologies & Find the Right Strategy




           No winner yet, pros and cons for all of them…
Technical Set Up
                                   Impression




                                    Is there a     yes       Display
                                   guaranteed
                                                           guaranteed.
                                   campaign?

   forward the impression to SSP



                                   Sold through    yes
                                                         Display RTB ad.
                                      RTB?


   passback to ad server



                                Display lower            SSP
                              priority campaign.         ad server
RTB: a New Product on Our Ad Space


     Direct Sales                      RTB
• Guaranteed – time,      • Great audience targeting
  impressions, reach,       features
  placement, frequency…   • Available for anybody, no
• Top placements and        minimum spend
  non-standard formats    • Less premium placements
• Full support              and formats
• Primary for branding    • Great for performance
                            campaigns
Centrum Supports Market Development
Results
& Lessons Learned
Cannot Exist without Price Floors




Offering the ad space for too low price
• Kills direct business
• Destroys the market
• Decreases the revenue (however, the same happens with too high price floors)
We decided to apply relatively high price floors to protect our business and the market.
eCPM Suprisingly Good, Fill Rate Quite Small



  Premium Inventory eCPM    „B“ Class Inventory eCPM




    CPT    RTB    PPC         CPT     RTB      PPC
Control is the Key to Avoid Channel Conflict and
Find New Opportunities
Private Exchanges: New Business Opportunity
Let’s Not Screw it Up
Summary




• RTB is of strategic importance for Centrum
• We have means to solve the channel conflict
• We have to invest into market development


RTB brings value through technology, it’s not about
selling out remnant inventory for any price.
?
 matej.novak@centrumholdings.com
http://www.linkedin.com/in/matejnovak
       www.DoubleSense.cz

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Implementing RTB @ Centrum.cz

  • 1. Implementing RTB @ Centrum.cz
  • 2. About This Presentation This is an English version of my presentation from Nov 6th 2012 at Czech Internet Forum on Centrum Holdings’ experience of implementation of RTB. Centrum Holdings is one of the top online publishers on Czech market and the first premium publisher who decided to offer the ad space through RTB and support the ecosystem. The Czech RTB market is in a very early stage of development in fall 2012, the display programmatic buying is dominated by Google AdWords.
  • 5. RTB is an Open Ecosystem with Many Players
  • 6. RTB: Auction of an Impression Done in 100ms 1. Offer – free impression MEDIA SSP TECHNOLOGY DSP TECHNOLOGY ADVERTISER / AGENCY 2. Response – the bid
  • 7. RTB is Efficient – Growing Fast Source: PubMatic Ad Revenue Report • RTB is efficient for both publishers and advertisers • It grows fast and counts for 10–15 % of online display revenues today
  • 9. Opportunities • Interesting service for the clients • Get new client segments • Establish market leadership • Additional revenue stream
  • 10. Threats • Small number of advertisers • Negative market response • Decreasing inventory value, cannibalization of CPT business
  • 12. Pilot – Test the Technologies & Find the Right Strategy No winner yet, pros and cons for all of them…
  • 13. Technical Set Up Impression Is there a yes Display guaranteed guaranteed. campaign? forward the impression to SSP Sold through yes Display RTB ad. RTB? passback to ad server Display lower SSP priority campaign. ad server
  • 14. RTB: a New Product on Our Ad Space Direct Sales RTB • Guaranteed – time, • Great audience targeting impressions, reach, features placement, frequency… • Available for anybody, no • Top placements and minimum spend non-standard formats • Less premium placements • Full support and formats • Primary for branding • Great for performance campaigns
  • 15. Centrum Supports Market Development
  • 17. Cannot Exist without Price Floors Offering the ad space for too low price • Kills direct business • Destroys the market • Decreases the revenue (however, the same happens with too high price floors) We decided to apply relatively high price floors to protect our business and the market.
  • 18. eCPM Suprisingly Good, Fill Rate Quite Small Premium Inventory eCPM „B“ Class Inventory eCPM CPT RTB PPC CPT RTB PPC
  • 19. Control is the Key to Avoid Channel Conflict and Find New Opportunities
  • 20. Private Exchanges: New Business Opportunity
  • 22. Summary • RTB is of strategic importance for Centrum • We have means to solve the channel conflict • We have to invest into market development RTB brings value through technology, it’s not about selling out remnant inventory for any price.