paul childs, mopub

White Nights Mobile Games Conference St Petersburg June 27 – 28 2013 Paul Childs Vice President and General Manager EMEA [email protected] @paulchilds @mopub

MoPub gives publishers the tools to create a successful mobile advertising business §  Founded by ex-Admob and ex-Google §  Launched late 2010 §  VC backed: Accel, Harison, Iris, Jafco

§  Processing 45b+ ads p/m §  Estimated 500m unique users p/m §  Current run rate $100m p/a 1)

San Francisco New York

London

Singapore

1) Techcrunch article 30 May 2013 : http://techcrunch.com/2013/05/30/mopub-100-million-revenue/

MoPub is the #1 ad server and exchange in the app economy Estimated 70+ staff by H1 2013 across 4 offices

mobile RTB makes sense

Non-RTB / SSPs / mediation / ad networks

Publishers/developers

Non-RTB / SSPs /

mediation / ad networks

Ad networks 1)

1) Source : List of ad networks from Mobile 2013 Lumascape

+ 200 more …."

Non-RTB model is broken for publishers

Non-RTB model!

Use legacy data to optimize"

Too many manual overrides"

Inventory partitioned off"

Not always highest price paid"

SSPs wearing multiple hats"

RTB model!

Per-impression bidding"

Automation"

All inventory in-play"

Highest price paid"

Marketplace economics"

Non-RTB model is broken for advertisers

Non-RTB model!

Price negotiation"

Inventory negotiation"

Delayed optimization"

Lack of margin transparency"

Lack of PUB transparency"

RTB model!

Marketplace sets the price"

Algorithmic"

Real-time optimization"

Margin transparency"

Publisher transparency"

How RTB works

Ad requests"

Winning bid"

Bid requests"

Bids + ads"

Ad server / RTB exchange

DSP n"

DSP 1"

DSP 2"

Auctions"

§  DSPs evaluate bid requests"§  Some respond with bids"§  Auction selects the highest bid"§  Winning ad is displayed"

2!

3!

4! 5!

6!

7!8!

9!

1!

Mobile RTB

Publishers

Mobile RTB Exchange

DSPs

+ 50 more …."

mobile RTB for publishers

MoPub Quarterly Insights Report:Core demand trend metrics

1) Source : MoPub Q1 2013 Quarterly Insights Report

-  Mobile advertising had a slower than expected start to Q1 2013!

MoPub Quarterly Insights Report:Average monthly CPMs


< 1%!spend!

-  iOS users have iTunes account!-  More likely / comfortable to purchase via mobile!

Poor CTV!

-  Android disillusionment !

eCPM

!

MoPub Quarterly Insights Report:Average monthly CTRs


CTR!

-  Slow start to the year !-  Buyers sought out less expensive access to high value iOS users!-  Feb -> Mar brand budgets started with demand for higher priced and quality inventory!

iOS CTR = 2x Android!

Brand dollars!

MoPub Quarterly Insights Report:Ad spend share


-  Over 50% of ad spend on iPhone driven by spend from two different groups!-  Decreased spend on Android after high end devices not delivering conversions!-  Brand spend Feb -> Mar increased iPhone share of total ad spend!

MoPub Quarterly Insights Report:Rich media v static banners


-  MRAID ads generates CPMs and CTRs!-  MRAID spend concentrated on iOS!-  Android unable to capitalize on increased value from rich media!-  Opportunity for other Android ad formats to steps and fill the void!

MoPub Quarterly Insights Report:Adoption of larger ad sizes grew exponentially


-  CTR of 480x320 10x CTR of 320x50!

-  The disparity between interstitial size and standard size increased exponentially from Jan to Mar due to 1) increased demand, 2) new brand spend and 3) game developers aligning turn based games with interstitials!

-  A larger image has a bigger impact due its ability to attract attention!

AVG 10 x!

mobile RTB for advertisers

When compared with non-RTB, mobile RTB provides significantly improved CTRs

1) Source : Adfonic Adsnap report on MobileRTB 2012

231%

191% 167%

138% 112% 103% 94%

67% 63% 54% 48%

Perfo

rman

ce u

plift

Uplift in CTRs for mobile RTB v non-RTB across advertiser verticals

-  Across all verticals the average CTR uplift is 97% or double that of non-RTB!

CTR performance improves globally


UK US AUS NEL FRA MEX CAN ESP GER ITA

100% 97%

80%

56% 53% 46% 45%

40%

27%

10%

Top 10 uplifts in CTR for mobile RTB v non-RTB across countries

Perfo

rman

ce u

plift

-  UK delivers 2 x more clicks for the same number of impressions!

Rich media and mobile RTB is an explosive mix


Non-rich media on non-RTB

Rich media on non-RTB +65% uplift compared to non rich media

Rich media on mobile RTB +53% uplift compared to rich media on non-RTB

165%

100%

218% -  Quality and quantity of data enable the right bids to be made at the right price!

-  Uplift triggered by enhanced format leading to increased likelihood to click!

Mobile RTB makes data work harder


Age Gender

455%

669%

Perc

enta

ge in

crea

se

Increase in quantity of demographic data for mobile RTB V non-RTB

Effect of mobile RTB algorithmic optimization


Submission rate Win rate

- 86%

428%

-  Agencies and advertisers can bid far fewer times!-  Yet win impressions at a far higher rate by targeting the right audience!

Uplift from mobile RTB v non-RTB on CTRs and eCPMs

48%

64%

CTR eCPM


-  Consequently, more efficIent algorithms have an impact on CTRs and eCPM!

mobile RTB case studies

Case study 1Half brick maker of Fruit Ninja

Challenge §  Increase mobile ad revenue §  Work with global user base

Action §  Installed MoPub SDK §  Access to publisher self-service tools §  Participation in MoPub Marketplace §  Per-country waterfalls to increase eCPM §  Relationships directly with ad networks

Outcome!§  Increased monthly ad revenue by 2,5x "

Case study 2Optime Software

Challenge §  Increase mobile ad revenue §  Manage advertising quality

Action §  Installed MoPub SDK §  Optimised yield between ad networks and RTB §  Participation in MoPub Marketplace §  Creative control settings and customized

blocklists to ensure advertising is appropriate for family audiences

Outcome!§  eCPM increased by 15%"§  Managing a portfolio of 34 apps"

Talk mobile RTB with mopub Stand #G3

paul childs, mopub

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