Bringing more mobile inventory to the DoubleClick Ad Exchange

(Originally posted on 11/29/11, updated 12/5/11)

It’s no secret that the mobile web is exploding. According to IDC, more people in the US are projected to access the web via a mobile device than on a computer by 2015. This makes mobile a very attractive opportunity for advertisers, and is creating a wave of new revenue opportunities for publishers.

In order to bring more mobile inventory to buyers on the DoubleClick Ad Exchange, we’ve launched two important initiatives for the mobile-specific 320x50 ad size.

First, buyers will be able to access AdMob in-app mobile inventory from AdMob publishers and application developers. Last week, we opened access to this inventory to a preselected set of Ad Exchange buyers. Second, as of today, we are beginning to test the ability for Ad Exchange publishers to opt in their 320x50 size mobile web inventory into the Ad Exchange. This will open up new mobile web inventory for Ad Exchange buyers. As publisher participation in these initiatives grows, we expect the inventory pool for in-app and mobile web inventory that’s specific to the 320x50 ad size to expand as well.

With the DoubleClick Ad Exchange, this new mobile inventory can be purchased via RTB or the UI. Ad Exchange buyers who are interested in the new 320x50 ad size should be sure to share their interest with their account manager.

Posted by Atul Bhandari, Product Manager, DoubleClick Ad Exchange

DoubleClick Ad Exchange: First Truly Cross-Format Exchange

Our product teams have been rapidly innovating to bring more format support to DoubleClick Ad Exchange. Recent format innovations include:

• Mobile web inventory. According to internal data from October, mobile web inventory on DoubleClick Ad Exchange from high-end phones and tablets already makes up around 9% of global inventory and 15% of U.S. inventory.
• Mobile in-app inventory. In the coming weeks, AdMob publishers and application developers will be able to make their in-app mobile inventory available on DoubleClick Ad Exchange. Read the full announcement here.
• In-stream video. Q3 was our first full quarter of making in-stream video inventory available to buyers. Between the beginning of Q3 to now, we’ve tripled the number of buyers accessing this inventory.
• Rollover to expand. We’ve added the rollover to expand rich media format to our existing click-to-expand and in-page formats.

Recently at OMMA Display, Chip Hall, Director, DoubleClick Ad Exchange, spoke about these innovations in a presentation titled, “Unlocking Opportunities With the First Truly Cross-format Exchange.” In case you missed it live, you can watch it here:

Posted by Sally Cole, Product Marketing Manager

Bringing AdMob Mobile Inventory to the DoubleClick Ad Exchange

In 2009, we launched the DoubleClick Ad Exchange as a way to simplify the process of buying and selling display advertising, drive performance for our advertiser and publisher partners, and open up the display marketplace. In the two years since, exchange-based trading has taken off -- we’ve seen the volume of trades on our own exchange grow by more than 150% in the past year. At the same time, display, as a medium, has evolved.

Display started as just banner ads on websites, but has grown to include a range of formats as diverse as the web itself -- rich media ads that bring a page to life, in-stream ads that play before your favorite online video, and ads that run in the mobile version of your daily newspaper. To reflect this growing diversity, we have been expanding the types of formats in the Exchange. We support the most popular types of rich media ads, including units that run in-page with video, or expand when you click or mouse over them. It’s also possible to buy ads across the mobile web. Earlier this year, we announced that in-stream video formats were coming to the Exchange, and we’ve seen huge demand since launch: the number of buyers for in-stream video has tripled over the past quarter.

Today, we are announcing another step forward -- in the coming weeks, AdMob developers will be able to make their in-app inventory available on the DoubleClick Ad Exchange. Initially, a small number of pre-qualified buyers will be able to compete for this inventory. Over time, we'll be rolling it out more broadly. Ultimately, this will give app developers and publishers access to a wider pool of buyers like demand-side platforms and agency trading desks, improving their potential returns, and helping grow the overall mobile web economy. And marketers on our Exchange will be able to buy, in real time, ads that run inside people’s favorite mobile games, news apps and more. With this important addition, the DoubleClick Ad Exchange will be truly cross-format...and will become the first exchange to support this full range of ad formats.

VivaKi, one of our key partners on the Exchange, is gearing up to start buying in-app ads on the Exchange. “We are delighted to be working with Google as they open up the DoubleClick Ad Exchange to include AdMob in-app inventory, and to deliver this opportunity to our clients,” says Kurt Unkel, Senior Vice President, VivaKi Nerve Center. “We anticipate this experience will help us bring mobile to scale to our partners, and will provide insight into the operational elements and the creative assets that work best in this environment.”

A cross-format exchange is just one of the ways we’re looking to simplify the process of buying and selling display advertising, but one we think will create tremendous value for advertisers and publishers. We will continue to work with our partners to help them get the most out of what the evolving display market has to offer -- today, tomorrow, and in the years ahead.

Posted by Chip Hall, Director, DoubleClick Ad Exchange

Case Study: DoubleClick Ad Exchange Helps Advertisers Find Quantcast Lookalikes at Scale

One benefit of DoubleClick Ad Exchange is that buyers can bring their own data, optimization and bidding strategies to the exchange in order to meet their own goals. In a new case study with Quantcast, we look at how they do exactly these things in real-time and at scale through their product, Quantcast Lookalikes.

Data and scale are two things Quantcast embraces. For example, across DoubleClick Ad Exchange, Quantcast achieves an amazing callout rate close to 100%, which means they can respond to almost all of the impressions DoubleClick announces to them. This matters in RTB because the best impressions for a campaign become easier to pick when the buying system sees them all. And since the start of 2011, Quantcast has doubled the number of impressions it handles from DoubleClick Ad Exchange and its overall data processing capability grows rapidly. Quantcast’s system currently generates a live feed of 400,000+ events a second, adding up to over five petabytes (five million gigabytes) of data processed a day with an incredibly high frequency of data points.

Quantcast especially appreciates DoubleClick Ad Exchange as a source of real-time inventory.

As Crispin Flowerday, Real-time Platform Manager at Quantcast says, "Quantcast helps advertisers and publishers get the right impression to the right person at the right time, so we seized on DoubleClick Ad Exchange's real-time bidding API as soon as it was available to us in 2009. RTB is a key pillar of our efforts to make advertising relevant and audiences valuable and the DoubleClick Ad Exchange is helping us make that dream a reality."

For more details on how Quantcast Lookalikes are used on the DoubleClick Ad Exchange, download the full case study here.

Posted by Sally Cole, Product Marketing Manager

Introducing Ad Exchange Direct Deals

The rise of Ad Exchanges has made it easier for buyers and sellers to connect, using technologies such as real-time bidding (RTB) to help unlock more value for every impression. Exchanges have also provided a number of efficiency benefits such as the elimination of paperwork (known as “insertion orders”) and trafficking for every transaction. Increasingly, deal types have been evolving on this platform as publishers have been making exclusive tiers of inventory available to select buyers via exchanges, a model typically known as a “private exchange”. Private exchanges can provide buyers with enhanced access to premium inventory.

While buyers and sellers have been transacting with anonymous inventory in the DoubleClick Ad Exchange auction for more than a year, it was clear that the industry was also ready for yet another evolutionary step in exchange buying. Both buyers and sellers wanted even more flexibility, control and pricing certainty for some transactions. In tandem, we’ve continued to evolve the Ad Exchange to meet these needs by rolling-out a new solution called Ad Exchange Direct Deals.

This new type of exchange deal allows buyers to access inventory from publishers at a fixed price through DoubleClick Ad Exchange. This differs from typical deals where the price is set through the auction. With Direct Deals, buyers get access to inventory on a pre-auction basis, thus getting “first look” access.

For buyers, this creates a bridge between the spot and reserve markets for display inventory. It helps buyers benefit from the high quality publisher inventory that the reserve market is known for while preserving the audience targeting power that the data-driven spot market is known for. With Direct Deals, buyers keep the efficiency of the exchange transaction, such as “insertion-orderless” buying and an ability to buy on an impression-by-impression basis, all while enjoying the pricing certainty of the directly negotiated deal. Accessing inventory through Direct Deals in combination with using brand-friendly formats like in-stream video and rich media will help advertisers execute brand campaigns against specific audiences and further unlock the branding potential of exchange-based buying.

Premium publishers, such as Washington Post and About.com, have been early testers of this feature working with leading exchange buyers such as re-targeting network, Criteo. For Criteo, this feature has meant new opportunities to connect with publishers. Jonathan Wolf, Chief Buying Officer at Criteo says, “Working directly with publishers has always been critical for Criteo, as a way to access the best inventory and deliver the highest CPMs to publishers. We are delighted to be using Direct Deals as a new way to achieve this, with all the advantages of a real-time mechanism.”

Here at Google, we are excited to introduce this new level of flexibility to Ad Exchange to help buyers improve the effectiveness of their campaigns and sellers profit from real-time display buying on their terms. DoubleClick Ad Exchange advertisers and publishers can contact their account manager to join the Direct Deals beta program.

Posted by Scott Spencer, Director of Product Management

Free Google White Paper Helps Buyers Benefit from Real-Time Bidding

In September 2009, the new DoubleClick Ad Exchange (ADX), built on Google technology, opened for business with support for real-time bidding (RTB). Since then, we’ve witnessed explosive growth in RTB. For example, RTB spend as a percent of spend on ADX has risen from 8% in January 2010 to 68% as of May 2011. Plus, the volume of impressions purchased via RTB for the first half of 2011 is 6.4x that of the first half of 2010.

At Google, we believe that the overall display advertising pie can get bigger and see RTB as one of the technologies that can help get us there. In February 2011, we did a “Real-Time Display Advertising State of the Industry Survey” with Digiday, which found that advertisers and agencies are reporting that they will spend more on digital advertising in 2011 because of the benefits of RTB.

To help buyers achieve the benefits they expect from RTB, we’ve published a white paper that shares our view of real-time bidding for online display advertising. Based on research and primary interviews with Google’s RTB experts across our product, sales and services organizations, this paper provides a clear definition of what real-time bidding is and how buyers can get involved with it. Whether you are a large or small advertiser, an agency or a trading desk or a media buying intermediary, Google would like to help you succeed with real-time bidding. We hope that this paper helps.

Download the free white paper (PDF)

Update posted 8/4/2011: Figure 1 in this white paper was missing the demand-side platform LucidMedia. We have now added them.

Posted by Sally Cole, Product Marketing Manager

Video: Learn How Real-Time Bidding is Defined and Trends in RTB in Under One Hour

Last week, we participated in an IAB Interactive Insights Webinar titled, “The Arrival of Real-Time Bidding.” In this webinar, Scott Spencer, Director of Product Management for DoubleClick Ad Exchange joined guests from Forrester Research, Inc. to define real-time bidding (RTB) and walk attendees through its impact on the marketplace for online ad inventory. Joining from Forrester Research, Inc. were Senior Analyst Joanna O’Connell and Analyst Michael Greene. Joanna explored how advertisers view the RTB trend and Michael explored how publishers view it. Scott, our foremost expert on RTB, discussed how Google works with advertisers and publishers on RTB.

For those of you who missed the webinar, we’ve posted the full recording here:

Posted by Sally Cole, Product Marketing Manager

Criteo Gets Great Results Retargeting Audiences at Scale with Real-Time Bidding

Real-time bidding (RTB) solves the challenge of efficiently and effectively acquiring ad space online. It requires two distinct layers of technology: a “pipe” and a “brain.”

The “pipe” provides a server-side connection to an inventory source and announces each impression individually as they become available for purchase. In June of 2010, Criteo integrated with DoubleClick Ad Exchange’s RTB API to access a “pipe” for RTB.

The “brain” is a buying system responsible for making the best inventory acquisition decisions possible, on behalf of the advertiser. Criteo’s platform, which does retargeting on a pure performance, pay-per-click (PPC) basis, is a highly intelligent “brain” of RTB. Criteo submits a different price for every single impression it sees. As an advanced buyer, Criteo manages to handle 100% of the ADX impressions it sees, and submits hundreds of millions of bids every day.

Together, Criteo and DoubleClick Ad Exchange are producing great results. Criteo’s VP of Marketing, Karen Dayan reports, “The relevance of our advertising is demonstrated by the great CTRs and great conversion rates we deliver. For many publishers we regularly deliver CTRs of 1%--which is huge, when the average display CTR is closer to .1%.”

Criteo’s Chief Buying Officer, Jonathan Wolf, says, “Real-time bidding is enabling us to further scale our business, and drive increased volume and performance for our advertisers, while also improving CPMs for publishers. We appreciate the global reach of Google and how easy it is for us to turn on RTB in a new market. That’s what makes DoubleClick Ad Exchange so valuable to us.”

Today, Criteo is a high volume, global buyer with live campaigns through ADX in 19 different countries. Google’s Head of Buyer Development for ADX, Chip Hall, says, “Criteo’s technological focus and entrepreneurial spirit has made them a great partner for DoubleClick Ad Exchange. Their sophistication in buying via real-time bidding on a global scale is impressive and has made them one of our top global partners.”

For more details on how Criteo uses DoubleClick Ad Exchange for retargeting audiences at scale, download the full case study here.

Posted by Sally Cole, Product Marketing Manager

TellApart Yields Tremendous Returns with Real-Time Bidding

We’ve written before that DoubleClick Ad Exchange has seen rapid uptake of real-time bidding (RTB). Ad Exchange inventory bought through RTB jumped from 8% in January 2010 to 66% in April 2011 -- a tremendous upswing in just over one year.

One company contributing to this upswing is TellApart. The company’s pay-per-conversion business model brings more dollars to display by ensuring ROI for e-commerce retailers. It’s adding as much as 8% in total revenue growth for top sites like Diapers.com, eBags, Drugstore.com, CafePress, Hayneedle and more.

Josh McFarland, CEO and Co-Founder of TellApart reports, “In our move to real-time bidding, we saw both our click-through rates and the volume of clicks increase, which means we’re getting more clicks at the right price. We’re increasing our spend with the DoubleClick Ad Exchange, because we know every new dollar spent returns new revenue for our clients.”

For more details on how TellApart uses DoubleClick Ad Exchange as a core component of its model, download the full case study here.

Posted by Sally Cole, Product Marketing Manager

Real-Time Display Advertising State of the Industry

The ability to buy and sell impressions in real-time is a major enabling feature of the fundamental changes powering the display marketplace today. Impressions are coming up for sale as they occur in real-time. Savvy buyers are evaluating these impressions and making data-driven decisions about their value. Display advertising is becoming more accountable, scalable and lucrative.

To learn more about this real-time trend, we recently undertook an industry study with Digiday, surveying more than 300 digital media buyers, agencies, intermediaries and publishers about their thoughts on real-time display advertising. Highlights from these findings will be presented today at DIGIDAY:ONMEDIA in Los Angeles. Some of the revealing findings include:

• 88% of buyers plan to buy via RTB in 2011, up from 75% last year.
  
  
• 47% of media buyers say that the benefits or RTB will increase their overall digital advertising budget this year (16% said it would not, 37% were unsure).
  
  
• Spending on RTB is quickly moving out of the "test budget" range: 79% of buyers estimate that more than 10% of their digital display budgets will go to RTB in 2011. 33% estimate that 50% or more of their digital display budget will go to RTB. And 7% estimate 90-100% of their digital display budget will go to RTB.
  
  
• 29% of media intermediaries (such as DSPs, ad networks, and exchanges) anticipate their volume of real-time bidding will increase by 100% or more versus last year. 19% believe it will go up by at least 200%.
  
  
• More formats are moving to RTB: 34% of buyers say they are extremely or very likely to purchase rich media ads via RTB this year, 32% are extremely or very likely to purchase dynamic creative ads via RTB, 20% are extremely or very likely to purchase mobile display ads via RTB, 18% are extremely or very likely to purchase in-stream video via RTB and 14% are extremely or very likely to purchase mobile rich media via RTB.
  
  
• Nearly half (48%) of publishers surveyed say they plan to increase the amount of inventory they will make available via RTB. 28% are still deciding. Only 24% said they were not planning to increase RTB inventory.
  
  

Real-time bidding is a major enabling force behind this sea change in the way digital media is transacted in today’s advertising marketplace. Yet, RTB is just part of an explosion of technology advancements in display. Read more about this technological Big Bang.

Posted by Sally Cole, Product Marketing Manager

Announcing the New DoubleClick Ad Exchange

You may have read on the Official Google Blog that the new DoubleClick Ad Exchange is open for business.

The new DoubleClick Ad Exchange helps to open the ecosystem and establish a new marketplace for buyers and sellers. For a large publisher managing multiple sales channels and ad networks, the Ad Exchange provides real-time yield management to maximize returns. Participating ad networks and agency networks get access to a large pool of inventory and the controls they need to precisely achieve their marketing goals.

We've been working for some time on rebuilding the Ad Exchange on Google technology to deliver an improved platform, with new features and functionality for our customers. Both sellers (publishers) and buyers (ad networks and agency networks) stand to benefit from the new features we've incorporated.

Key benefits for sellers include:

• Real-time dynamic allocation to maximize yield. Publishers can automatically generate the highest return for every impression, using real-time data and bids to allocate ad space to the sales channel that pays the most at that second.
• Access to many more advertisers. The Ad Exchange offers publishers access to new buyers, including AdWords advertisers, bringing higher quality ads and more competition for ad space on their sites.
• Hassle-free payments managed by Google. We manage the billing and payments from networks so publishers get one monthly payment and minimize having to manage multiple relationships.
• Greater controls. Publishers can decide what advertisers, networks, ad formats, and bid types to allow.
• New easy to use interface with enhanced reporting. We use the simplicity of Google's user design principles to help publishers easily find out how their sites are performing, to help them make the right decisions about their ad space.

Key benefits for buyers include:

• Access to more publishers and more ad space. Hundreds of thousands of AdSense publisher sites are now available on the Ad Exchange to Google-certified ad networks. And as more publishers join the Ad Exchange to take advantage of its yield management capabilities, more high quality inventory is being added all the time.
• Real-time bidding. The Ad Exchange supports real-time bidding, which allows buyers to use their own data, optimization and ad serving technologies to bid on their desired inventory on an impression-by-impression basis, choosing only the sites, audiences, or particular type of ad space they want to reach.
• New easy to use interface with enhanced buyer reporting capabilities. Redesigned reports are simple to use and understand, so buyers can easily see how their campaigns are performing to help them make the right decisions.
• More control and precision. Buyers control where their ads appear and don't appear. They can use frequency capping, pacing and other features to precisely control ad delivery.
• Centralized clearing system. Google makes all payments to publishers, reducing complexity with a single billing and payment point. Buyers benefit from managing one business relationship instead of many.
• A new API - Ad networks and agency networks will have access to an API which enables them to integrate their own functionality and systems when working with the Ad Exchange.

We're excited about the open marketplace that the new Ad Exchange creates and believe that it will add substantial value to the display advertising ecosystem.