Tim DuBois, Director of New Business at AppNexus, and Steve Truxal, Product Manager at AppNexus, dive into header bidding and its impact on mobile monetization.

1. AppNexus Inc. - Confidential – Not for Distribution
Unlocking the Power
of Mobile Monetization
AppNexus Inc. — Confidential1
Header Bidding

2. AppNexus Inc. - Confidential – Not for Distribution2 AppNexus Inc. - Confidential – Not for Distribution
Tim DuBois
Director, New Business
Steve Truxal
Product Manager
Presenters

3. AppNexus Inc. - Confidential – Not for Distribution
Header Bidding for Web
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
‘The ad tech
industry is
waging a
secret war
on Google’
‘The Rise Of
'Header Bidding'
and The End of The
Publisher Waterfall’
‘HEADER BIDDING –
Another nail in the
second-price coffin’ WTF
is headerbidding?’
TOP 1000
24%
of the
DOMAINS
are running header bidding
47% of those have
multiple bidders
(study by Hearst, Nov 2015)

4. AppNexus Inc. - Confidential – Not for Distribution
Header Bidding Benefits to Web
Empower publishers to work with multiple
exchanges (increase competition and yield)
and let them compete on exact price in real time.
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
• Header bidding kicks away mediation. No more waterfalling or latency.
• Scaling private marketplaces.

5. AppNexus Inc. - Confidential – Not for Distribution
Prebid.js
5
The #1 Open Source header bidding platform for publishers, SSP’s, and data analytics to collaborate.
HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
100+
PUBLISHERS
50+
CONTRIBUTORS
12
SSP’s
(Data captured in Feb 2016)

6. AppNexus Inc. - Confidential – Not for DistributionAppNexus Inc. - Confidential – Not for Distribution
Can Header
Bidding bring
the same benefits
to apps?

7. AppNexus Inc. - Confidential – Not for Distribution
Mobile is a Closed Ecosystem
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
1
• Majority of inventory is monetized by ad networks with un-disclosed take rates.
• Take rates tend to be very high.
• Transparency into actual source of demand is low.
PUBLISHERSADVERTISERS
O T H E R
I N T E R M E D I A R I E S

8. AppNexus Inc. - Confidential – Not for Distribution
No visibility into publisher’s own data
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
2
Publishers do not get access into their own data or
their own high value users. Networks get to keep
publishers’ data.
PUBLISHERS
Data
High Value Users
PUBLISHERS THEREFORE
cannot best monetize their
inventory via Private
Marketplace or via class 1
direct demand.

9. AppNexus Inc. - Confidential – Not for Distribution
Mediation waterfalls
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
3
Monetization is weak. It’s like spinning the wheel.
Long latency (some graphics like the right)
Humongous SDK.
Tons of bugs.
Release cycle is delayed.
Hard ad ops setup that requires
maintenance every day.

10. AppNexus Inc. - Confidential – Not for Distribution
Exchange take rates are high
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
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Server side RTB is great. It gives open price and low latency.
It solves many of the problems of mediation. But there’s a catch:
BIDDERS
APP
-40%$6 $10

11. AppNexus Inc. - Confidential – Not for Distribution
Exchange take rates are high
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
4
Server side RTB is great. It gives open price and low latency.
It solves many of the problems of mediation. But there’s a catch:
BIDDERS
APP
-40%$6 $10
$8.5 $10
-15%

12. AppNexus Inc. - Confidential – Not for Distribution
Difficulty Scaling PMP Deals
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
5
IT’s hard to setup and transact deals. However creating unique
packages and advertiser access to audience is essential.

13. AppNexus Inc. - Confidential – Not for DistributionAppNexus Inc. - Confidential – Not for Distribution13
Mobile Ecosystem Issues
(a summary)
1 Mobile is a closed ecosystem with high network take rates
2 Data ownership
3 Mediation waterfall
4 High Exchange rates
5 Scaling PMPs

14. AppNexus Inc. - Confidential – Not for Distribution
Mobile Header Bidding
AppNexus Confidential – Do Not Distribute.

15. AppNexus Inc. - Confidential – Not for Distribution15

16. AppNexus Inc. - Confidential – Not for Distribution
Got an
ad?
$2.5!
+ ad url
Ad
Server

17. AppNexus Inc. - Confidential – Not for Distribution
Problems solved
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
ZERO LATENCY
NO SDK NO MEDIATION
MULTIPLE EXCHANGES

18. AppNexus Inc. - Confidential – Not for Distribution
Our Proposal
to Mobile
Monetization
Networks start working with the publishers via
server side RTB, or through a header bidding
fashion. Both could work.
Publishers start working with 1 to 2 more
exchanges via header bidding to increase the
competition on fee and on demand => Increase
revenue and reduce fee.
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
1
2

19. AppNexus Inc. - Confidential – Not for Distribution
Monetization Strategies
AppNexus Confidential – Do Not Distribute.

20. AppNexus Inc. - Confidential – Not for Distribution
Mobile Header Bidding is complementary
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
1
• Continue to work with your current AdServer & SSP
• Install a header bidding solution to increase competition for your inventory & reduce ‘middleman cuts’
• Introduce new buyers and PMP deals via header bidding channel
adservers Price check

21. AppNexus Inc. - Confidential – Not for Distribution
Source only Deals & PMPs
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
2
• Happy with your current setup? Then use the header only for PMP & Direct Deals
• Allow header bidding to compete only with high value PMP deals demand
• Transparency into actual source of demand is low.
adservers

22. AppNexus Inc. - Confidential – Not for Distribution
Solve Lost Inventory Loss Due to Latency
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
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• Got Latency? Header Bidding is pre-cached. No Waterfalls = increased inventory
• Incremental revenue will follow from higher fill rates
• Reduce inventory wastage and impression loss with header bidding

23. AppNexus Inc. - Confidential – Not for Distribution
Move Mediation Into the Header
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HEADER BIDDING:UNLOCKINGTHE POWEROF MOBILE MONETIZATION
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• Why mediate at the bottom of the waterfall?
• Header based competition between RTB & AdNet Mediation will drive incremental dollars
• In Alpha, Coming to a PriceCheck Header Bidding Solution Soon

24. AppNexus Inc. - Confidential – Not for Distribution
Next Step:
If you are a publisher, wondering how to push your
networks into header bidding, or want to integrate with more
exchanges, we’d like to speak to you.
If you are a buyer, wondering how to work with publishers
through header bidding, we’d like to speak to you.