The history of ad monetisation and how we got here

[Music] okay guys just to clarify I'm not going to talk about you a or attention even though that's awesome and I'm also obviously not an awesome Panhandle people from chartboost and mega cool and all that we had a bit of a mishap or misunderstanding whatever you wanna call it about the scheduling so here I am I was supposed to be yesterday but now I'm here however I'm adjusting my presentation so this is gonna be short and sweet so you know to give you more time with the awesome panel so what I'm gonna talk about though is originally the good the bad and the ugly about you thermalization special the outside so I cut that down to kind of talk instead about really briefly about admirin station history and how we get to where we are right now which is basically header bidding and I want to explain how to bidding in a really simple way that's the purpose of this presentation and I don't think it's come at 20 minutes I'm sure you can kick it off market maybe 10 or so is that's cool

so but please interrupt me with questions I'll make this again I'll make this very simple so if it's too simple than you know bear with me but if not and that's great and do interrupt me questions I'm fine taking during the time as well cool I'll just kick it off then really brief for me I'm a VP or Mia for short boost I've been doing that for about four years I've been in the industry web gaming all that stuff in about what a decade I work with short post and those who doesn't know that it's one of the biggest mobile ad networks for games yeah we integrating 300 thousand apps and almost a billion unique monthly so the agenda today is about atomization in the beginning I started then waterfall and mediation touched on real quickly why that happened and what kind of problem it sold and then I'm gonna talk about how to bidding and programmatic ad buying and then compared it to mediation versus ID bidding right so in the beginning it

was really easy and I'm in the beginning I'm talking about like seven eight nine ten years ago when it mobile advertising really started you had a game you integrated on network they gave you basically you gave them an ad request they serve that you get a pretty good CPM and they feel decently in the US and I was kind of thing very simple way to just monetize if you don't have a ap right a few Network started short this was one of them you know they were very few networks out there there was not a minutes to choose from and and all that everything was easy you didn't make so much money but you made some money right then the ad network industry proved to be very good healthy solid industry which always attracts newcomers right so a lot of other networks started so we had ad network one and two and three and four and five and six and seven eight nine ten and they all served different ads obviously and a different price so some had a really good AVG its

average by the way average CPM of that's a three another four and one and and first one against it feels 60% the second one feels maybe only 20 but you didn't have a way to really combine this really well you couldn't really maximize this right what you want to do obviously is you want to bring all the networks in and you want to choose to want to paste the most and then always feel every request that you have now obviously there was a solution for this and it was called and still is mediation so what a mediation does and this again super simplified it takes all the networks that we have or that you wanna use and you basically serve always the first impression to the one that the one network it was first in a waterfall so what usually happens is that in the waterfall you take the the best paying out network on average CPM that's quite important average CP I'm not like CPM

for every impression but average CPM you put out first and whenever that network you feel it feels so you know you do add network to and then you know and until it can not feel no more or do you don't want to give it the second impression as well then it goes to the second Network another third and obviously this solve the problem now really easily you can integrate all the networks that you want right some big companies pay their own mediation and others you know outsource that or put in a mediation platform in the games and then it can integrate all they are never as you want you benefit from you know different CPMs and make sure they always have the best one well on average on top right brought a lot of problems though as well the main problem was that you know you didn't always serve the best paying impression and Aliens illustrate here that and let's say that we have this set up over a four-year mediation had a different ad networks that's how the water for the set up right ad network to pace the best usually so they you know they get to be in the first position so you get one impression of impression one

and a draft book to great they had you know they had an impression worth five $5 CPM they get served you know make you know you made five dollars on a thousand impressions however that's it on that impression number two comes whole different impression ad network to is still at the top obviously so that ad is gonna be served value three dollar CPM better here will obviously would have been to show ad network one right however it's not until we get another impression we're actually ad networks who doesn't have an ad that ad network one gets to serve an ad and yet again in this instance it's still not the best one right so you know it's you you get what I mean right I mean it's not optimized basically so the hypothetical best solution obviously for this would have been to show the impression that pays

the most all the time right now how do you do that and one solution to solve this is through hairy bidding so that's gonna be you know we start up with the problem we saw the variation it created another problem that we now solving header bidding and header bidding sure everyone has heard about it it's a buzz word of 2018 all that stuff and what is it really and I'm not explaining it with these three very simple sentences by any means I'm not saying that but to me it's really about real-time bidding so every network all those bids on every impression so it's not like you automatically goes to one network but it's actually bidding in real-time which then in a every the publisher to always monetize with the highest bidder always that's the plan and the name even though it doesn't make much sense in a mobile game it comes from somewhere eight and it's been around in the web for like 15 years or so so on the web my heart beating is very common and the reason is called header bidding was

because the bidding functionality was embedded in the header of a page or the webpage basically so header bidding as a word doesn't make any sense but it's Kennedy yeah that that's the functionality hence the name any questions so far no okay cool so that's Harry bidding and if we want to explain it really simplified again you have your ad sorry your game you send the ad request now you have a other platform or solution that I just calls header bidding here for simplicity and they're all the networks that compete in real time and whoever has the highest bid gets the to serve the ad and you know as you can see if you have two different impressions it doesn't matter you don't have a waterfall anymore you just pick the best one you have right so just summarize before I'm gonna hand over to

Mike in this awesome panel I'm gonna look forward to listening to as well this is the difference between the main difference between mediation and header bidding you have the waterfall a mediation is inefficient in terms of CPM optimization because you always will serve the the ad network in the top header bidding is efficient because it will always serve the best the highest bidder of all networks you have now they're bound about this stuff as well you know in terms of like SDK integration and and and all that kind of stuff and and also control you know you have you give away control if you have a third board mediation you don't do that but had it been a necessarily and there's a lot of stuff there's a lot of nuances to this there's a lot of technology that's very different over stuff but to me this is the main difference it's really about CPM optimization that's what had is about thank you any questions yes so

I know if you heard but the question was what are the revenue effects of this optimization that's a great question first of all it's very early to say that yet because header bidding is still in its infancy not too many companies habit I think no one really has it on mobile game in its full kind of fully implemented there are few solutions out there today but I would say 20-30 percent is probably a good estimation of the impact of it all so one of the questions at all that usually comes up when I talk about header bidding versus waterfall is how much of a low does that put on the game and does it really slow things down when you're actually requesting bids and are the bids getting in fast enough to actually go ahead and render the ad and from what I know you've got a pretty fast system and it's

not really adding any any material delay at all considering that you can actually pre it stage the auction and preload the ad just like we always have waterfall bidding is that true that's true yeah I mean it depends on what technical solution you choose but a lot of the header bidding solutions actually require an integration of the of the ad networks SDKs anywhere which usually precache ads and then you can serve them immediately but there are other solutions we had a bidding where you don't have pre integrated as the case though which you know obviously it's good for the game because I give you know the the game will you can you can reduce the the file size by a lot of may megabytes right but but then you could have some delays in some countries but the technology now in general is so much better than a few years ago that you can you can basically stream in real time awesome like I'm not here to promote short post but but we stream a lot of our videos in real time now we don't pee we don't necessarily pre pee cache because our streaming services are so

fast and we see them good city and global city and networks you can actually do that so in terms of load time it's it's if this any delay caused by a debating today that at least should be gone in a few years definitely and it has the opportunity also to have a lower SDK for our sorry lower file size as well for us as an ad monetization solution fantastic Johan thank you very much [Music]