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

The Perfect Ad and the Next Phase of the Display Advertising Revolution: Interview with Neal Mohan

(Cross-posted from the Google Agency Blog)

Following his keynote address titled "There's a Perfect Ad for Everyone" at New York's IAB Innovation Days @ Internet Week, Neal Mohan, our VP of Display Advertising was interviewed by Willow Duttge.

In his interview, Neal shed further insight into the new user revolution taking place in digital media and what it means for advertisers and publishers. Here are a few key takeaways from the interview:

• There’s a big opportunity for advertisers and publishers to deliver an enhanced user experience by employing dynamic rich media formats, delivering ads customized for each user, adopting user-centric metrics to measure campaign success, and offering users much more control over their advertising they see.
• Initial steps publishers and advertisers can take today toward this user-centric goal include looking closely at and listening to their audiences and experimenting with new formats and user experiences.
• The mobile revolution presents new opportunities for advertisers and publishers looking to connect with users in new and more meaningful ways.

And if you missed the livestream of Neal's keynote, watch it here.

Posted by the Google Display Team

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

Insights from Thought Leaders and Innovators in Digital Marketing

At DoubleClick, we've had the privilege of picking the brains of several of the industry's thought leaders and innovators in digital marketing. We've captured a few of these key insights through our ThreeQuestions for Innovators video interview series: These interviews span the gamut of key industry themes and issues, including current trends and influencers, ad exchanges, social media, emerging media, and the future.

This month we're honored to highlight interviews with Carla Hendra, Chief Executive Officer of Ogilvy North America, as well as Ian Schafer, CEO and Founder of interactive marketing agency Deep Focus. Carla speaks to us on the challenges in the brave world of digital marketing, while Ian shares his insights on rich media, video, and the role of the agency in the advertising process.

We're excited about our lineup of thought leaders and the conversations they spark - whether it's about opportunities in a challenging economic environment, trends to watch for in 2009 or ground-breaking insights from innovative fields such as neuromarketing.

Posted by Min Li Chan

Sharing Your Voice on the Economy

Before the election, we hosted an informal web poll that asked our visitors the following question, "Which issue do you think the next U.S. president should make a primary focus during his or her first 100 days in office?" Visitors resoundingly voted for the issue of economy/recession. Here's how the 1760 responses broke out:

• Economy/Recession 62.27%
• Foreign Policy 11.59%
• Environment 8.01%
• Healthcare 7.50%
• National Security 5.85%
• Immigration 4.77%

If you're ready to get even more participatory, head over to The Davos Debates on YouTube where The World Economic Forum invites you to send in your solutions and suggestions for the key issues facing us today. The focus issues include the state of the economy, the environment, US politics and business ethics. The four questions up for public discussion through the YouTube platform are:

• Are you confident that global growth will be restored in 2009?
• Will the environment lose out to the economy in 2009?
• Will the Obama administration improve the state of the world in 2009?
• Should company executives have a code of ethics similar to doctors and lawyers?

The person who submits the best video will be invited, all expenses paid, to attend The World Economic Forum's upcoming Annual Meeting in Davos-Klosters and interact with world leaders in person.

To learn more, watch the video about joining The Davos Debates:

Visit youtube.com/davos to join in.

Posted by Sally Cole

The End of the Writer's Strike

As of today, members of the Writers Guild of America, which has been on strike since Nov. 5, 2007, are going back to work. The guild voted late yesterday to end the walkout after agreeing with Hollywood's producers on compensation for TV shows and movies streamed on the Web.

Previously on DoubleClick's website, we asked visitors, "What month will the writer's strike end?" Almost 150 people responded.

Here's how you replied:

January: 5.63%
February: 28.17%
March: 27.46%
April: 9.86%
May: 13.38%
June or later: 15.49%

Congratulations to the 28.17% of you that accurately predicted the future!

Posted by Heath Row

My Interview for MarketingVoices about Influencers and Vertical Networks

I've been glad to dust off my blogging chops with this new DoubleClick blog lately, and furthering my Web 2.0 street cred, I was just interviewed for a podcast by MarketingVoices, which just went live here. The host, Jennifer Jones, focused the interview on how marketers can effectively reach word-of-mouth influencers, and in my reply I discussed three ways marketers can use blogs to do so: 1) set up a company blog (like this one) themselves, which admittedly is easier said than done well; 2) use next-generation PR tactics to reach out to bloggers in a manner that does more good than harm (again, often still a challenge to traditional-minded PR specialists), and 3) advertising on blogs.

That last point is only still just catching on among marketers, capitalizing on the benefit of the so-called "long tail" of content and ad inventory online, but in fact it may be the most effective of all three strategies, both in terms of reach and influence. For evidence on that point, I cited our research paper "Influencing the Influencers: How Online Advertising and Media Impact Word of Mouth," which concluded that influencers pay considerably more attention to web ads than non-influencers when in the purchase decision process.

As to how marketers can reach influencers through blog advertising, I talked a bit about the emerging trend of publishers forming what are known as "vertical networks" – that is, large web publishers such as Martha Stewart and Food Network reaching out to large numbers of bloggers to form niche networks of content with high-quality small publishers. This trend is really a win-win-win: the publishers extend their reach of relevant content and advertising inventory to keep pace with the rapid growth of industry spending without a huge investment in new editorial resources; marketers can effectively reach influencers in contextually targeted content areas via existing trusted partners, and bloggers can cash in on the value they are creating with their passionate content creation without having to develop expertise in ad sales. Have a listen, you might enjoy it!

Posted by Rick Bruner

Word of Mouth Write Up

In the last month-plus, I’ve been lucky to participate in two conferences that are worth commenting on – and shortlisting for your potential attendance next year.

In early October, I participated in Forrester Research’s 2007 Consumer Forum. The agenda focused heavily on social media and potential applications for marketers and advertisers. I was particularly intrigued and inspired by Josh Bernoff’s call for a strategic approach to social media, Richard Edelman’s perspective on the role of corporate communications in the Web 2.0 world, and Henry Jenkins’s comments on convergence culture.

More recently, I spoke at the 2007 Word of Mouth Research Symposium, which was hosted by the Word of Mouth Marketing Association. While there, I presented our report Influencing the Influencers, and I sat in on most of the other sessions over the course of the day.

Of special interest was “Measuring the Ripple: Creating the G2X Relay Rate and an Industry Standard Methodology to Measure the Spread of WOM Coversations and Marketing," which was presented by Matt McGlinn of BzzAgent and Dr. Walter Carl of ChatThreads. They’ve gone far to calculate the iterative effect of word-of-mouth marketing campaigns. I was also impressed by “The Effects of Word of Mouth: An Agent-Based Simulation of Interpersonal Influence in Social Networks,” which was presented by Dejan Duzevik, a complexity scientist at Icosystem. By modeling various marketing activities, you can gauge the potential impact of word of mouth.

While I wasn’t able to stay in Las Vegas for the following WOMMA Summit, I got several ideas while at the research symposium and spent quality time with peers in the industry – some of whom I’ve known for years but never met. If you’re interested in word-of-mouth marketing, the state of the research backing it up improves every year.

Posted by Heath Row

Forrester's VanBoskirk on Media, Ad Exchanges

DoubleClick Ad Exchange recently hosted two roundtable dinners to engage with publishers, agencies and marketers, foster direct dialogue between buyers and sellers of online display media, and learn more about issues on the minds (and budgets) of disparate members of the advertising community. We invited Forrester's Shar VanBoskirk to present.

Among the ideas that Shar presented at the two dinners:

• New media advertising, which now accounts for 8% of total ad spend, will become more important as younger consumers become mainstream. Across all channels (SEM, display, emerging, video, etc.), CAGR through 2012 projects to be 27%, with video at nearly 80% CAGR over the same time period.
• Marketers expect interactive effectiveness to increase, and their budget projections and plans over the next three years reflect this.
• Interactive continues to serve marketer needs more effectively, from selling products and services online to driving Web site traffic to lead-gen and relationship building.
• Exchanges will drive the next generation of sales – what is a relatively new concept now will become a core component of media buying and selling in the future.

Posted by Campbell Foster

Heath Row speaking at WOMMA's Word of Mouth Research Symposium

If you're heading to Vegas next week for the Word of Mouth Marketing Association's Word of Mouth Marketing Summit, be sure to check out Heath Row, DoubleClick's research manager speaking at the Research Symposium on Tuesday about Influencing the Influencer: How Online Advertising and Media Impact Word of Mouth. It's based on a popular research paper of ours by the same name.

Heath's one of DoubleClick's best public speakers. He's also fun to schmooze with, if you get a chance, a former journalist of many years for Fast Company magazine and an avid blogger in his own right. We'll make sure he gives a quick write-up of the event when he gets back.

Posted by Rick Bruner

DoubleClick Keynote at Streaming Media Europe

There's a good overview of my recent keynote at Streaming Media Europe on the Streaming Media blog. During my presentation I was worried that I was going to be blogged -- and I guess that worry came true!

Posted by Ari Paparo

Rob Victor on Emerging Markets

Our own Rob Victor, Product Manager for Emerging Tech, spoke to About.com on mobile and other subjects. Worth a watch...

Posted by Ari Paparo

Interview With Ari Paparo on ClickZ

ClickZ is posting an interview with yours truly. I discuss mobile, rich media, video, widgets, a little bit of everything...

Posted by Ari Paparo