From Hack to Holistic Approach Header-Bidding: From Hack to Holistic Approach Presented by Emry DowningHall General Manager

Why this tech has grown so quickly Header-Bidding auction mechanics Latency and how to approach it Price flooring and why it’s critical Wrappers Best practices: level up What’s next for header-bidding?

Header-Bidding Tagless Ad-Tech

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Largest revenue driver in 2016 Header-Bidding % of total revenue From one enabled partner in 2014 to seven and counting 3% 2014 From manual to automated DFP line item setup 24% From placed on the page to home brewed framework 2015 43% From no-timeout to controlled timeout Largest revenue driver in 2016 2016

Why is header-bidding growing so quickly? Dynamic Allocation Vs.

Why is header-bidding growing so quickly? Increases the value of inventory Increases dynamic competition Growth Drivers Encourages unique demand Easier to monitor discrepancy Eliminates passbacks

Auction Dynamics: Bid Entry INDEX Enabled partners pass bids into a publishers mediation layer Each enabled partner runs a 2nd price auction within their exchange Bids must be returned before timeout occurs OpenX AOL AppNexus SOVRN Timeout 1200 MS

Publisher Mediation Layer Auction Dynamics: Publisher Mediation Layer INDEX $5.50 bid Publisher Mediation Layer 1st price auction OpenX $4.00 bid AOL $3.00 bid AppNexus $2.00 bid SOVRN $5.75 bid

Auction Dynamics: DFP Mediation Layer This process sets a more effective floor price for AdX. Minimizing auction spread and increasing performance. Cuts the bid disparity of a non-header setup due to pricing granularity. This is why you need so many line items. Dynamic pricing enables appropriate bid levels for high and low valued inventory. DFP Mediation Layer 2nd price auction $5.75 bid

Auction Dynamics: DFP Mediation Layer This process sets a more effective floor price for AdX. Minimizing auction spread and increasing performance. Cuts the bid disparity of a non-header setup due to pricing granularity. This is why you need so many line items. Dynamic pricing enables appropriate bid levels for high and low valued inventory. DFP Mediation Layer 2nd price auction $5.75 bid

Latency: Fighting the Good Fight Page latency negatively impacts: Billable inventory User experience Viewability Fight latency with: Async integrations Testing different timeouts Limiting partners

So what? Why does that matter? Pricing: You’re Being Floored The vast majority of header partners use publisher specific price floors to optimize and apply bid pressure on their advertising partners. So what? Why does that matter? Floors too high: Partner may not bid deep into page sessions Floors too low: Partner wont be competitive for ‘first look’ inventory

Pricing: You’re Being Floored Ask your partners how your inventory is being floored Anonymize and share bid data Flooring Best Practices Diversify floor pricing where available Push for dynamic pricing

Let’s talk about rappers

rappers wrappers No market leader: Why? Choice paralysis Difficult to test multiple solutions Partners don’t play nicely with one another Misinformation amongst partners and publishers Do you need a wrapper solution to be successful?

The Levels of Header-Bidding Level 1: Getting Started Level II: Power Up Level III: Flight Async integrations Tracking impression/revenue discrepancy vs. DFP Dynamic price floors/timeouts Price priority line items More granular line item setup A/B testing All bid values are net Static timeout enforced Throttling partners Examine what revenue impact new partners provide A sense of partner(s) flooring strategy Bid multipliers A sense of average CPM per pageview Unified reporting Throttling partners: The ability to cut or add partners based on performance per user session. Bid multipliers: Applying a multiple to a partner’s bid to increase its chances of winning the impression. Unified reporting: Automated insights into partner performance, including latency and percentage of revenue. This is used for determining what dynamic bid floors to pass.

What’s next for header? Alleviating the publisher complexities required to play Server to server integrations Automated data collection Defined strategies for handling many partners Google’s response? It wont be ‘First Look’

THANK YOU! QUESTIONS? @EDH5 emry@studybreakmedia.com

DATA SLIDES WERE NOT INCLUDED IN PRESENTATION

Key metrics for ad performance Measurement What does it measure? Formula Real CPM CPM based on total impressions, not paid Revenue / (total impressions / 1,000) Revenue per 1,000 pageviews Revenue earned for every 1,000 pageviews Revenue / (total pageviews / 1,000) Revenue per 1,000 sessions Revenue earned for every 1,000 sessions Revenue / (total sessions / 1,000) Pageviews per session Average pageviews seen per user session Pageviews / Sessions Impressions per pageview Average impressions seen per pageview shown Impressions total / Pageviews Ad type SOV Percentage of total revenue per ad type Ex. Header, AdX, Rich-Media Ad type rev total / Total rev

Header-Bidding: metrics to monitor Measurement What does it measure Formula DFP impression total vs. partner impression total Impression discrepancy Partner imp / DFP imp DFP revenue vs. partner revenue Revenue discrepancy Partner rev / DFP rev Impression weight % of total impressions HB partner accounts for Partner imp total / total header impressions Revenue weight % of total revenue HB partner accounts for Partner rev total / Total header rev Header-Bidding revenue vs. total revenue % of total revenue header-bidding accounts for HB rev total / Site rev total Pageview vs. Impression growth Difference between pageview and impression growth abs(Imp growth % - Pageview growth %)