Introduction to RTB and Retargeting 淺談即時廣告競標及重⾏行銷廣告

cacaFly - 陸振恩 Popcorny (Pop)

About me

§  Experience •  98~02 交大資科系 •  02~04 交大資科所 分散式實驗室 •  05~10 MediaTek •  11~13 SmartQ •  13~ cacaFly

•  Skills •  Java •  MSSQL/MySQL/MongoDB •  iOS •  Android

•  Contact me •  FB: http://fb.me/popcornylu •  Email: popcorny@cacafly.com

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cacaFly Milestones

2006 Founded in NCTU funP.com -the leading Social Media Website in Taiwan

2009 cacaFly - the first company providing social media marketing service in Taiwan.

2011 cacaFly has partnered with Facebook to be the only authorized advertisement reseller in Taiwan

2012 cacaFly started a new division to manage small and medium businesses in Taiwanese market.

2013 cacaFly become the excusive advertisement reseller of Microsoft in Taiwan

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Roles in Advertisement

Advertiser

•  Brand Name •  Government •  Individuals

Advertiser Agency

Media Agency Media / Publisher

•  Television •  Radio •  Newspaper •  Magazine •  Outdoor •  Web Site •  App

Buy Side Sell Side

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source 5

Online Advertisement

IAB Standard Size

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Advertisement Steps

Action

Sales, Install, Fans,

Click User click the

banner

Impression Ad is shown on

banner Click Through Rate (CTR) = Clicks / Impressions

Conversion Rate (CR) = Actions/ Clicks

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Pricing Model

§  Cost Per Milli (thousand) impression - CPM §  Cost per Click - CPC §  Cost per Action - CPA

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How to measure the performance?

Advertiser ROI

Publisher Profit

Effective CPC (eCPC) = Total Cost / Clicks Effective CPA (eCPA) = Total Cost / Actions

Effective CPM(eCPM) = Total Earn / Thousand Impression

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Online Advertisement

Publisher Advertiser

Ad Server Sell Ad

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Online Advertisement

Publisher Advertiser Buy Ad

Ad Server

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Web Site Advertiser Web Site Web Site

Publisher

Advertiser Advertiser

Advertiser Advertiser

Publisher

Contact with every websites?

Approach to each advertiser?

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Ad Network

Ad Network

Advertiser Buy Ad

Advertiser

Advertiser

Advertiser

Web Site Request Ad

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Web Site

Web Site

Web Site

Ad Network Problems

§  Imbalance of demand and supply

§  User base

§  Limited target

§  Solution

•  AD Exchange

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Ad Exchange

Ad Exchange

Buy Ad

Request Exchange

Publisher

Demand Side

Platform (DSP)

Supply Side

Platform (SSP)

Advertiser

Buy Ad Request Ad

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Ad Exchange

§  SSP delegate ad exchange to sell ad

§  DSP bid ad from exchange

§  Behave like the stock exchange

§  Bidding Mechanism

•  Bulk buy by target

•  Real-Time Bidding

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Real-Time Bidding

§  Bid for every single impression

§  Second Price Auction

§  Response in 100ms or less.

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Real-Time Bidding

Ad Exchange DSP Advertiser SSP

1. Ad Request 2. Request Ad exchange 3. Send to all

DSPs

4. Bid or no bid If bid, response the ad data and price

5. Response the ad data

6. Render the ad

8. Send the impression pixel

9. User click 10. Link to the click URL

11. Redirect to the landing page

7. Notice win and win price

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Second Price Auction

Ad Exchange

$0.2

DSP 1

No Bid

DSP 2

$0.3

DSP 3

$0.25

DSP 4

No Bid

DSP 5

Ad Exchange

$0.3 $0.25

DSP 3

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Targeting

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Targeting

§  Target the Ads to the effective audience group.

§  By demographics, geographic, devices, behavior

§  How to know about customer?

•  Contextual Targeting

•  Behavioral Targeting

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Targeting

Wikipeida Targeted Advertising 22

Targeting

• Analyze the keyword or attributes of the web page.

• Keyword Ads. Contextual Targeting

• Track the audience behavior. • Use cookie Behavioral

Targeting

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Contextual Targeting

AdSense 24

Behavioral Targeting

Amazon 25

Retargeting

§  Remarketing

§  A type of behavioral targeting

§  Basic idea is

§  The users have once visit your website have more chance to revisit

your website again.

§  The consumers have once navigate one product have more

chance to buy this product.

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Retargeting

AdRoll 27

Retargeting by Ad Network

EC site (Adverstiser

Ad Network

pop-travel.com

pop-ad.com

1. Visit your site

3. Request tag 5. Set cookie (domain: pop-ad.com)

Cookie Table

2. Render retargeting tag

4. Store cookie for this tag

Tracking an user

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Retargeting by Ad Network

EC site (Adverstiser

Ad Network

pop-travel.com

pop-ad.com

6. User revisit to your site

3. Request Ad with cookie

5. Render the ad for this campaign

Cookie Table

Other site (Publisher)

pop-forum.com

1. Visit another site

2. Render ad network tag

4. Find retargeting campaign matching this user.

Retarget an user

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Retargeting

§  What’s the problem?

§  Supply, Supply Supply

§  Solution is?

§  Ad Exchange with RTB

§  Another problem is how about cookie domain?

§  Cookie Matching

§  Who provides this solution?

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Cookie Matching (Track an user) Ad Exchange (pop-ex.com)

DSP (pop-dsp.com)

Advertiser (pop-travel.com)

1. Visit your website

2. Return web page with DSP retargeting tag

5. Set cookie and redirect to ad exhange

3. Request retargeting tag (http://pop-dsp.com/cm?seg=27)

4. Store the cookie id for this tag set-cookie: id=abc

8. 1x1 invisible pixel

6. Redirected by DSP (http://pop-ex.com/cm?dspid=pop&id=abc)

7. Store the cookie id for this tag set-cookie: pop-id=abc

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Cookie Matching

Cookie: id=abc

pop-dsp.com Cookie: pop-id=abc

pop-ex.com

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Cookie Matching (Retarget an User) Ad Exchange (pop-ex.com)

DSP (pop-dsp.com)

Publisher (xyz.com)

1. Visit other website

2. Return web page with AdExchange ad

7. Render my retargeting ad

3. Request Ad 4. Bid Request with id=abc

5. Look up ‘abc’ from the database and find there is a retargeting ad matches.

6. Bid with high price

Advertiser (pop-travel.com)

8. Link to my site

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Recap

§  Buy side to sell side

§  Online advertisement

§  Pricing model and measurement

§  AdServer, AdNetwork, AdExchange

§  Real-Time Bidding

§  Targeting

§  Contextual targeting

§  Behavioral targeting

§  Retargeting

§  Retargeting using RTB

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Ecosystem

LUMA 35

Thanks Q & A