Real Time Bidding (RTB)

Using the RTB system advertisers can buy not specific spaces on the websites for advertisements, and audience which will see these declarations. The platform recognizes by behavior of the user on the Internet its age, the place of residence and interests. Every time when this user opens the website, there is an auction: for those fractions of a second that the page is loaded, advertisers stake for that the owner of the computer (for example, the sporty Muscovite student of 20 years) saw their advertizing.

Participate in an auction: the platform – the seller of an advertizing space and DSP system — the buyers representing the interests of advertisers. The RTB platform will organize an auction, accepts rates and defines the winner. For fractions of a second of a DSP system estimate how valuable demonstration of the declaration to this user is, and then it is staked in a price type for demonstration. The winner, i.e. that DSP system which gave the best price acquires the right to show the advertizing.

Popularity of technology

2014

According to forecasts of ADFOX (March, 2014), the share of RTB in 2014 can reach 10% of total market of media advertizing. As the driver of growth the concluded arrangement between Yandex and Google, entry into the Russian market of the western players and also development of the concept of programmatic direct can act.

2013: 1.2 billion rub (6% of the market of media advertizing)

By 2015 sales of advertizing via the RTB systems will occupy not less than 15% of the market of banner advertizing of Runet though for May, 2013 their share of only 1-2%, the director of digital communications of the Russian representative office of Aegis Media Andrey Chernyshov said.

In March, 2014 the ADFOX Company submitted the next "Overview of the market of RTB in Russia" in which the results of development of a programmatic segment of purchases of advertizing in Russia in 2013 are summed up. In the first half of the year 2013 the amount of the Russian market of RTB (bidding in real time) was 0.4 billion rubles, and, in the second half of the year this indicator twice exceeded a similar indicator of the first half of year. Today the weighted average assessment of the market of RTB in Russia at the end of 2013 makes 1.2 billion rubles - it is 6% of the total amount of the market of media advertizing which, according to the association of the communication agencies of Russia (ACAR), in 2013 made 20.1 billion rubles.

RTB is perceived by experts as the main driver of market development of Digital Signage. According to IDC, the volume of the generated RTB of revenue will annually increase by 51% and by 2017 will be $20.8 billion, at the same time only in 2013 it grew by 60% in comparison with 2012. A big share in the world market of RTB occupies the USA, but, according to the experts, the share of the USA in the market of RTB will decrease by 2017 from 74% to 69%.

The proof that RTB will become the driver of the market of Internet advertizing are several important events connected with the market of RTB. In March, 2013 Facebook included in Facebook Exchange RTB service demonstration of advertisements in a news feed of net surfers. The test period passed several months, and large players of the market, for example, of AdRoll, AppNexus, Brandscreen and others took part in it. All companies which were taking part in testing stated that the efficiency of Facebook Exchange considerably exceeds efficiency of traditional advertizing campaigns including targeted campaigns via Google Exchange.

Also in April, 2013 the social network Foursquare began cooperation with Turn company within which Foursquare provides data on location of the user for targeting on other websites. These data obtained from mobile devices are the most exact for advertizing targeting. Says the fact that at the average cost for one thousand demonstrations in $1, cost when using Foursquare reaches $1.5 about efficiency of such approach.

In 2013 the new trend of the market of RTB – mobile advertizing in videos appeared. According to the report of IAB, about 7% of all advertizing budgets on the Internet are spent for advertizing in online video and this segment of the advertizing market adds 20% a year: in 2013 $3.6 billion were spent for advertizing in online video, and in 2014 this digit will grow to $4.6 billion. It is explained by avalanche increase in volume of consumption a type on the Internet which grows for 24% a year.

As for the Russian market, it, though is not the world leader in indicators, shows sure growth rates. By estimates of AKAR, the total amount of the market of Internet advertizing last year was 71.7 billion rubles that is 27% more than an indicator for 2012. The Segment of media advertizing grew by 12%, having made 20.1 billion rubles, and context added 34% that in a cash equivalent makes 51.6 billion rubles.

In spite of the fact that the RTB market in Russia started in 2012 not so successfully as it was expected by experts and players of the market, but interest in this segment did not cease and at the end of 2013 market size grew to 1.2 billion rubles that made 6% of the market of media advertizing. Last year there was one very important change of the RTB market: players passed from words to action therefore a part of players whose expectations were not met, left the market, but on their place larger companies came with already developed action plans and also the western players. So, Yandex Company in 2012 announced creation of the RTB system, and in 2013 the partner websites of the company began to be connected to biddings gradually. At the beginning of 2014 "Yandex" took an important step for RTB market development, having begun cooperation with Google in advertizing. Service of placement of media advertizing of "Yandex", AWAPS, will be connected to the RTB system of Google, and a Google service, Double Click Bid Manager, to the RTB system of "Yandex". At the moment other large Russian companies are not going to enter the programmatic buying market, however experts are sure that the Russian social networks will adopt experience of Facebook and will take part in market development.

Analysts note that large Russian online projects more often and more willingly began to enter the market of RTB, offering the stock (advertizing positions) through the advertizing exchanges or creating own technologies. In 2013 the service of online acquaintances Wamba, RBC holding and the portal of advertisements Avito, largest in Russia, up for sale began to put traffic. The last, for example, suggests advertisers to buy advertizing demonstrations, using Google DoubleClick AdExchange and Yandex RTB. Advertisers can participate in open auction, or zaklat the direct purchase agreement of a certain volume of traffic using data through programmatic direct. Large customers of Avito are BMW Group, Svyaznoy, P&G.

Experts consider that in the near future RTB traffic of platforms will concentrate in hands of large SSP (the technology companies trading in advertizing positions). Owners of the websites, having estimated possibilities of each of them, will stop the choice on that which brings a maximum of income from implementation of residual traffic. I present such companies as ADFOX, AdRiver, Begun, OpenX and others at the Russian market of SSP service now.

During 2013 the volume of the redeemed RTB traffic through the DSP auction evenly grew, and dynamics consisted not only of increase in quantity of stock, but also of increase in percent of the redemption. Remained the most demanded format 240х400, its share in the total amount of the redemption made 80%, further there is format 728х90. Other formats are forced almost out by two leaders and have less than 5% of total amount.

In Russia personal data, as well as in the rest of the world, only large Internet services and social networks own. Access to these data for other players of the market is extremely limited. Also large online stores on the basis of which they can segment audience locate base of the data and carry out targeting. Other players for obtaining these data use services of suppliers which conditionally are divided into two groups. The companies having data and providing them for targeted advertizing and the companies aggregating data of suppliers for formation of summary profiles on the basis of different sources belong to the first category.

In 2014 market development of RTB in several directions is predicted. The concept of programmatic direct will be implemented for implementation of bonus sales of stock through programmatic infrastructure. Brand safety technologies will continue the development that will promote protection of advertisers against emergence of their banners on the undesirable websites. Besides, the number of large platforms which will begin to offer the advertizing stock for an auction will increase, the market of data will develop and new suppliers will appear.

It is expected also that will occur integration of the Russian traffic in the western DSP (the advertizing systems providing the interests of advertisers), and in the market new competent specialists for work with data and technologies will appear. According to preliminary forecasts, in 2014 the share of RTB in the total amount of the market of media advertizing will reach 10%.

Difficulties of the market

For effective work of RTB a key question — creation of the adequate knowledge base about users that advertizing was shown to target audience, the commercial director of Mail.ru Group Alexey Katkov says. In May, 2013 Katkov criticized the Data mining RTB platform from Tinkoff Digital company which without the permission used data of users from Odnoklassniki social network.

For May, 2013 the market in Russia only forms — platforms are concerned what is given by data of users to counters and advertizing networks, but do not know how many it is necessary to take for these data, the head of the Moscow representative office of Aegis — Amnet Russia Kirill Chistov says. And advertisers want to buy these data, but do not know yet how many to pay.

"Without databases which 'Yandex' has, Mail.ru and 'In contact' it is impossible to achieve the most effective targeting" — Semyon Poletsky agrees, the product manager of Creara (places advertizing in VKontakte)^[1].

RTB platforms

• Google Ads Manager (before DoubleClick) - Google
• www.betweendigital.ru
• Segmento (Rutarget)
• Aegis Media. In May, 2012 the advertizing Aegis Media group reported that it started the RTB system in Russia. The Amnet company (enters into Aegis) developed the RTB platform, it is already used by advertisers in the USA, Great Britain, Germany, France and other countries. The group expects to become one of leaders of RTB advertizing in Runet. Aegis already has the international partner — Google, and in Russia the company conducts negotiations with "Yandex" and other Internet companies. According to Katkov (the commercial director of Mail.ru Group) Aegis Media already agreed with Mail.ru Group about trial pilot placements of advertizing.

The prices of RTB in Russia and the CIS

For February, 2014 the average price for click across Russia 7 cents, across Ukraine - 5 cents, across Kazakhstan - 4 cents, over other countries 2-3 cents.

Notes