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© mobyaffiliates.com 2012 | Mobile Ad Server Report.doc 2

Table of Contents

1 Introduction 3

2 What are mobile ad-servers and SSPs? 4

3 Key Stats on mobile ad servers, SSPs and RTB 6

4 Benefits of Mobile Ad servers 7

5 Mobile RTB 9

6 Profiles of mobile ad server companies 10

7 Your Next Steps 15

© mobyaffiliates.com 2012 | Mobile Ad Server Report.doc 3

1 Introduction

As the mobile ad market matures, developers and publishers are faced with an ever

increasing variety of ways to monetise their inventory. In the last couple of years numerous

platforms have sprung-up that go beyond the functionality offered by typical ad-networks and

expand into solutions where publishers can mediate ads from multiple networks, sell their

inventory directly to advertisers, and take advantage of new sources of mobile advertising

revenue from RTB or real-time-bidding.

In this report we’re going to take closer look at mobile ad servers and supply side platforms, as

well as the companies behind them, to get a better idea of how they can help your mobile

business and generate revenue.

You can find out more about mobile ad servers and mobile advertising at

http://mobyaffiliates.com

Let us know any questions or to get in touch email us at research@mobyaffiliates.com

© mobyaffiliates.com 2012 | Mobile Ad Server Report.doc 4

2 What are mobile ad-servers and SSPs?

Ad servers and SSPs allow you to:

Mediate between multiple 3rd party ad networks

Cross promote your own ads across apps and websites

Sell inventory directly to multiple advertisers

Integrate with real time bidding

A mobile ad-server is a solution that brings a number of features into play. It lets you independently sell your

inventory to advertisers directly, giving you greater control over what ads appear on your app or mobile

website and greater control over monetisation. An ad server will also allow you to deploy in-house cross-

promotional ads between your own apps and mobile sites.

The other advantage of using an server is ad network mediation. This lets you manage and

optimise ads from multiple ad-networks. Ad mediation platforms, such the one offered by

mAdserve, let you access a multitude of different networks, create and launch campaigns,

prioritise networks and allocate backfill percentages. Network mediation platforms such as

Nexage’s, also feature their own dynamic optimisation algorithm that maximises revenue by

automating decisions around eCPM value and fill rate.

Many platforms that offer ad-servers like the above also offer mobile supply side platform

(SSP) functionality and integration with real time bidding (RTB) exchanges. Mobile SSPs are

ad server platforms that sit at the publisher end of the real time bidding process, with demand

side platforms (DSPs) sitting at the advertiser/agency end. So SSPs are essentially the

platforms that enable you to sell ad impressions in real time. Here’s a nice and simple

explanation of RTB from Wikipedia:

“An Internet user visits various sport websites. He arrives on a website (call it X) that uses Real-Time Bidding

to deliver ads. In the background, an advertiser – a major beer distributor – has specified that they are

interested in reaching sports enthusiasts. Several other advertisers also have expressed similar interests in

sport lovers. Before an ad is displayed all of these advertisers participate in a real time auction using their

DSP systems to supply bids to the ad exchange to which the SSP system used by website X has floated this

ad impression for sale. Whoever bids most wins the auction, and their ad gets displayed to the Internet user in

question. In our case, the beer distributor based on its proprietary data and 3rd party data about this specific

Internet user decides to bid more for this ad impression than other competing advertisers. The algorithms of

the DSP that our beer distributor uses predict a high probability of this internet user making a beer purchase

and of a positive ROI on paying for this specific ad impression. Thus, the beer commercial wins the auction

and gets displayed to the sports lover who visited website X.”

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RTB allows advertisers to carry out much more complicated ad buying strategies than typical

networks will allow. It gives them direct access to the 1st party data you’ve collected on users

(mitigating the constraints of operating in a cookie-less environment) and lets them bid on ad

impressions in real time within high-frequency auctions. This allows you as a publisher to get

the best eCPM possible on your inventory and allows the advertiser to get the most relevant

traffic for their ads.

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3 Key Stats on mobile ad servers, SSPs and RTB ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

App ‘Air Horn’ reached average eCPM of $2.54 with Burstly’s ad management platform

Using cross promotional in-house ads on your apps can increase eCPM by 66-

150%according to Burstly.

Real Time Bidding can double publisher eCPMs says Nexage.

DSPs are raising demand for interstitial ads on MoPub’s MarketPlace, with typical fill rates

of 80-90% and average eCPM of $0.70-1.00.

Google owned Admeld says 30% of all its mobile clients are monetised via real time

bidding.

Smaato’s SSP expanded to over 230 countries worldwide this year, with 50,000 developers

and 190 billion ad requests

Publishers are seeing a 77% monthly increase in bid volume when using Nexage’s real

time bidding platform.

MoPub has decreased latency on its ad server to 200-300ms over 2G and 3G networks.

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4 Benefits of Mobile Ad servers

Using an ad-server can bring a number of significant improvements to your mobile marketing

efforts. One of the key features is the ability to unchain yourself from a single ad network, and

instead mediate between dozens. This allows you to:

Boost fill rate

Ad networks often fail to provide a 100% fill rate and if you’re not showing an ad then you

certainly won’t be monetising that impression. It only makes sense that, by using multiple ad

networks, you can decrease the risk of your ad space lying empty.

Vary your revenue source

Different ad networks will have different revenue sharing systems in place and different prices

for their ads. So again, locking yourself into one network means you may be missing out on

better priced ads elsewhere.

Different ads

Along with low fill rates, another problem that comes with relying on one ad network is being

served the same ad over and over again. Not only is this less engaging for the user, but if

you’re working on a CPC model, and your user has already clicked through in the past, then

it’s effectively like showing no ads at all.

Geographical targeting

Different ad networks will typically have varying eCPMs and dramatically different fill rates

across different geographical locations. If your app is popular in Asia and Europe, but not so

popular in the US, using multiple networks helps you compensate for this.

Relevance

By opening yourself up to different ad networks you’re also increasing the likelihood of finding

more relevant ad campaigns for your users. For instance, if you have a videogame app, you’re

probably better off with videogame related ads (even better if their genre specific). Conversely,

if you have an iPhone app, then an ad for a Windows Phone app isn’t much use.

Beyond mediation, the other key benefits to using ad servers is direct selling opportunities and

cross promotional in house ads, which allow you to do the following:

Direct selling

Using an ad server lets you cut out the middleman entirely and sell directly to advertisers. If

you’ve been getting queries from advertisers about buying ad space then you should definitely

be thinking about this. Selling direct can ensure the relevancy of ads and give you complete

control over pricing and ad approvals. Direct selling is also a great opportunity for local

advertisers to target their customers. For instance, you might have a specialised app that

provides coffee shop information for Seattle, or bookstore locations in London. In such cases

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you could strike lucrative deals with local business owners that aren’t available on ad

networks.

In-house cross promotion

House ads are basically ads that you’ve created yourself for your own products. They can be a

very powerful tool if used correctly. For instance, you can run ads for the paid version of your

app within the free version. Or you can run ads for in-app payments.

Such ads will a) be incredibly relevant (the user downloaded your app, so they’re probably

interested in it) and b) you’ll always get a 100% fill rate. Of course, you can also advertise your

websites, different apps, or your developer page in the app store. You can also use ad server

cross promotion to easily form partnerships with other app developers. For instance, you can

agree to display ads from another developer that has an app that’s highly relevant to your

users, in exchange for him doing the same across one of his apps.

Frequency capping

Many mobile ad servers also provide you with frequency capping. This essentially means

restricting the amount of times a specific visitor is shown a particular advertisement while

using your app or mobile site. Of course, the more ad networks you draw upon the more

effective this feature can be.

© mobyaffiliates.com 2012 | Mobile Ad Server Report.doc 9

5 Mobile RTB

Mobile real-time-bidding has grown tremendously in the short amount of time it’s been

available to mobile publishers and advertisers. The mobile ad industry is expected to grow to

over $20 billion in 2015 and, according to Gartner, mobile RTB will account for almost 30% of

the market. Nexage says its RTB platform, which it claims is the largest, has scaled and

continues to grow more than 70% per month. The reason RTB appeals to ad industry is

because it gives buyers a great deal of transparency, letting them know where their money is

being spent and exactly what’s being bought.

Monetise your valuable data

One of the biggest benefits of RTB, for both publishers and advertisers, is that it unlocks the

value of your first party user data. Due to the lack of tracking and cookies, mobile advertising

spend has been inhibited. But by using real time data advertisers can use information like

location, age, gender etc. on an impression-by-impression basis without profiling. This means

you can get premium CPMs on traffic that’s relevant to advertisers.

Relevancy

This use of data means you can offer a unique and relevant traffic to advertisers. More and

more advertisers are moving toward vertical DSPs, specialising in niches such as health,

travel or gaming. By using RTB you can take better advantage of your relevant impressions

and move where the advertising money is going.

Ad mediation/Yield optimisation

Ad mediation platforms, such as the one offered by Nexage, bring sophisticated yield

optimisation algorithms into play. These algorithms can consider both your eCPM value and

your fill rate in order to maximise revenues. Yield optimisation platforms can be integrated with

RTB to give you a range of controls and options across both standard ad networks and

Demand Side Platforms (DSPs).

© mobyaffiliates.com 2012 | Mobile Ad Server Report.doc 10

6 Profiles of Mobile Ad Server Companies mADserve

mAdserve is a mobile ad server from ad network MobFox. Based in Vienna, Austria.

Key Features:

Open source SDKs: mAdserve features open source SDKs for iOS and Android, supporting

banner ads and interstitials.

Multi-user admin panel: mAdserve’s admin console lets you create and launch campaigns,

prioritise certain ad networks , allocate backfill percentages and more.

31 ad networks: mAdserve does not act as an exchange, rather it gives you access to 31 of

the leading mobile ad networks with a direct publisher relationship.

Burstly

Burstly is an app monetisation platform that allows publishers to mediate popular mobile ad

networks and sell direct to advertisers. Based in San Francisco.

Key features:

Ad mediation: Burstly lets you mediate “all popular 3rd party ad networks”. It’s ad mediation

platform also lets you cross promote your own ads and track installs, as offering directly sold

campaigns, custom targeting, interstitial ads, video ads, banners and custom ad sizes.

Storefront: Lets you sell directly to advertisers, giving publishers control over pricing and ad

approvals and giving advertisers the ability to target local users.

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MoPub

App monetisation platform that offers mobile RTB, direct ad selling and ad exchange. Based in

San Francisco.

Key features:

MarketPlace: MoPub’s RTB platform, directly integrated into company’s open source SDK

and ad serving platform. Gives you “full control” of every ad that gets displayed on your app,

along with detailed performance reporting. MoPub also offers a private marketplace that lets

you set up relationships with trusted advertisers.

Ad network mediation: Offers full SDK-free support for around ten mobile ad networks,

including MobFox, iAd and JumpTap. Lets publishers remain first party with advertisers they

work with.

Nexage

Nexage is a mobile ad platform that uses ad network mediation, RTB and direct selling via its

ad server to help publishers better monetise their inventory.

Key features:

Real-time bidding: Nexage claims to have the most advanced and liquid RTB platform on the

market. The company says its platform is doubling publisher eCPMs and delivering a 77%

increase in bid volume.

Mediation: Nexage’s mediation platform gives publishers access to over 100 ad networks and

a “dynamic optimisation algorithm” to help maximise revenue performance.

Ad server: Publishers can create direct-sold and house ad campaigns with Nexage’s ad

server. Also supports frequency capping, sponsorship campaigns and support for rich media

ads.

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MobClix

Mobile real time bidding ad exchange owned by Velti and based in California.

Key features:

Mobile ad exchange: MobClix’s RTB platform gives publishers access to ads from a number

of leading mobile ad networks, including Jumptap, Millennial, Mobile Theory and Velti. The

company also offers its own analytics solution and a specialised “one-on-one” support for

premium publishers looking for an extensive ad operations solution.

PubMatic

Digital ad monetisation platform that specialises in real-time-bidding and yield optimisation.

Based in Silicon Valley, California.

Key features:

RTB: PubMatic’s mobile RTB platform integrates with most of the major ad servers and more

than 30 ad networks globally. The company says it has a “unique cross platform approach” to

automate the sale of inventory and supports rich media ads and all banner sizes for

smartphones and tablets.

Smaato

Mobile ad monetisation platform that uses RTB and ad mediation to help more than 58,000

app developers maximise their mobile app inventory. Based in San Francisco, with offices in

Hamburg and Singapore.

Key features:

Mediation: Smaato claims to give publishers access to over 90 mobile ad networks and 24

demand side platforms across 230 countries. The company also offers standard and rich

media advertising, including expandable ads, floating ads, interactive ads and mobile video.

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Analytics: Smaato offers real time reporting and analytics that can provide visibility on country

breakdown, ad network breakdown, device type and KPI comparisons.

Admeld

Supply side platform from Google-owned Admeld that supports mobile RTB.

Key features:

RTB: Admeld claims to be the first mobile SSP, offering premium publishers a single platform

to optimise their ad inventory across the mobile web and apps.

AdMarvel

Mobile ad optimisation company owned by browser-developer Opera and based in California.

Key features:

Sell direct campaigns: AdMarvel let’s you sell directly to advertisers with a campaign

manager, where you can schedule and all kinds of ad units, and track bookings.

Network optimisation: Manage a broad portfolio of ad networks, letting you dynamically

select ad networks with the best-priced campaigns and the best fill rates.

Targeting: Ad Marvel offers a targeting platform that lets you know the size and value of your

audience and generate metrics that will help you get the best prices for your inventory from

advertisers.

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Rubicon Project

Online advertising technology company that recent launched a mobile solution via its real time

REVV trading platform. Based in Los Angeles, with offices in Paris and Hamburg.

Key features:

REVV Marketplace: Rubicon recently launched REVV Marketplace for mobile, an ad serving

platform giving buyers and sellers access to the RTB marketplace, as well as a platform for

direct selling. REVV supports analytics, location-based targeting and rich media ad units.

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7 Your Next Steps

For more about mobile ad servers, mobile advertising and mobile marketing head on over to

mobyaffiliates.com