Solving the Remnant Inventory ProblemBen Barokas, Co-Founder and CRO

August 18th 2009

About Us

Select AdMeld Customers Founded in October 2007

Focus on premium publishers

80+ customers

Manages more than 300 million ad impressions daily

Raised $15M in venture funding from Spark Capital and Foundry Group

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Introduction

How does discretionary optimization work?– Create your ideal network portfolio– Calculate the true value of every impression– Deliver it with scalability and quality of experience

What does it do for you?– Boost your revenues– Save you time, lower your costs– Help protect your brand

Looking forward– RTB and Data

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Creating Your Ideal Network Portfolio

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Analyze your site

Understand network inventory

Find the right mixIntegrate and prioritize

Optimize your portfolio

Diversification is Key

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Low Fill

High CPM

LowCPM

High Fill

Optimizing A Single Impression

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Network ARev Share

$1.50Network BRev Share

$1.20Network C

Real Time Bid$1.10

Network DFixed 3x24 $1.00Network ERev Share

$0.50

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Getting to True Value

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Discrepancy Frequency Fill

Discrepancy

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Many sources: internet latency, ad server latency, user moving away from page to quickly

Without discrepancy management, optimization is ineffective

Achieved 20% revenue lift at IAC through discrepancy management alone

Factoring in Discrepancy

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Discrepancy

40%

0%

15%

10%

Start

$1.50

$1.10

$1.00

$0.50

Network ARev Share

$0.90Network BRev Share$1.08Network C

Real Time Bid$1.10Network DFixed 3x24$0.85Network ERev Share$0.45

10%$1.20

eCPM

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Frequency

Early views worth most

CPM is an average across multiple views

Many networks shift to CPC or CPA at higher frequencies

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Previously was done with multiple tags from networks which carries a lot of overhead for premium publishers

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Factoring in Frequency

10

Frequency

60%

100%

100%

100%

Discrepancy

$0.90

$1.10

$0.85

$0.45

Network ARev Share $0.54Network BRev Share$1.30Network C

Real Time Bid$1.10Network DFixed 3x24$0.85Network ERev Share$0.45

120%$1.08

eCPM

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Fill Rates and Pass backs

Highest paying tags usually have low fill

Managing fill is essential to calculating revenue

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Daisy chains ensure an ad is shown

What used to be done manually once a week, now done dynamically for every impression

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Calculating Dynamic Daisy Chains

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Factoring in Fill

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True Value

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The Results

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“Common”Choice $0.47

Network ARev Share

$1.50

Network ERev Share

$0.50

OptimizedChoice $1.16

Network BRev Share

$1.20

Network DFixed 3x24

$1.00

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150% Revenue LiftOver 100,000,000 impressions,

an additional $70,000

Reality Check

Doing this for large, premium publishers means:– Calculating 5000 chain combinations per impression, in

real time, millions of times a day

– Accounting for geo, frequency caps and network latency

– Maximizing revenue during traffic spikes

– Backing it up with consultative services and expertise

– Executing against publisher business rules

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Managing Business Rules

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Complete visibility into each ad, without leaving your website.

• See the network that served the ad• Report or disable problem ads• View pricing, fill, targeting info, etc.

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Real Time Bidding

A Shorter Road to True ValueWith RTB, buyers bid dynamically for each impression instead of setting blind rates (futures) beforehand

Less Risk, Less FrictionWith less risk, buyers confidently spend more at higher rates, and pubs will have more access to demand sources

RTB To Ramp Up in 2010As adoption grows, so will efficiency and performance

A Big Win for Premium PublishersThe most valuable inventory lies at the nexus of content, context and audience. Premium publishers have all three.

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It’s All About Data

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Thank You

July 16th 2009