INFOGRAPHIC: Inside The Mobile Real-Time Bidding Ad Ecosystem

INFOGRAPHIC: Inside The Mobile Real-Time Bidding Ad Ecosystem

Josh Luger | May 24, 2013, 3:30 PM | 1,279 | 

Real-time bidding, or RTB, is a style of programmatic buying in which digital advertising opportunities are auctioned off in real-time. The auctions take place in milliseconds as advertisers bid on the right to show you an ad immediately after you open an app or click to a new web page. On the desktop it’s a powerful technique to deliver the right ad to the right consumer at the right time and place. On mobile, it could be more powerful since consumers take their devices everywhere — to the mall, the car dealership, Starbucks, etc. In a recent reportBI Intelligence analyzes programmatic bidding and real time bidding, analyze how it may help solve the mobile advertising CPM problem, and detail its recent impact and successes. We also examine the potential obstacles to its widespread adoption, and look at how the holy grail of mobile advertising – controls and efficiencies – may be reached through its use. By all accounts, RTB grew tremendously in 2012 across the mobile advertising ecosystem. Some of the most promising highlights include: Adfonic: Launched a mobile demand-side platform with RTB in October 2012, says it saw a quarterly increase of 22 billion RTB ad requests in the third quarter of last year — a full three-quarters of its growth— thanks to Android and iOS RTB inventory.  Nexage: A mobile ad exchange, it reported that RTB more than doubled its share of revenue on the platform between May and October of last year. RTB’s revenue share grew 37% every month.  MoPub: A mobile ad exchange, it reported that the number of winning RTB auctions increased 162% over the third quarter of 2012. It’s not just that more real-time auctions are happening. There are also more bids being placed on each RTB-mediated ad request, a metric sometimes referred to as “bid depth.” Nexage, whose mobile RTB exchange is 18 months old, saw the number of bids per auction grow 96% between the second and third quarter of last year. MoPub reported bid depth of 1.6 bids per auction in June 2012, up from 0.4 bids per auction in January.

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About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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