public vs. private mobile ad exchange comparison · rtb spec: 2.1 open rtb auction mode: second...
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TapSense Research:
Public vs. Private Mobile Ad Exchange Comparison
By Gregory Kennedy and Ash Kumar
Introduction
There is still much confusion when it comes to the differences between public real-time bidding (RTB) and private RTB in mobile. Historically, RTB exchanges such as Google AdX have been viewed as a sub-optimal monetization solution for publishers. On the web, poor public RTB implementations, combined with a massive volume of undifferentiated inventory, resulted in downward pricing pressure on publishers’ CPMs. The private model used by large publishers such as eBay, News Corp, and others, has emerged as a solution to help mitigate these problems for premium publishers.
We conducted this research to provide an in-depth analysis of how private and public RTB platforms perform, and to show the benefits of private RTB in mobile.
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Research Findings
TapSense private RTB monetizes significantly better than public RTB
across all markets. TapSense eCPMs are nearly five times public RTB in
some markets. TapSense private RTB users tend to be more engaged,
with CTRs nearly triple that of public RTB in some markets, and higher
CTRs across all markets.
In the U.S., which is a highly competitive market, TapSense private
RTB eCPMs was 213% greater than public RTB. TapSense private
RTB monetization was extremely strong in Australia and Canada, with
private RTB eCPMs exceeding public RTB eCPMs by 513% and 325%,
respectively.
Why TapSense Private Mobile RTB Monetizes Better than
Public RTB
Advertising performance is driven by two major factors: technology and
inventory quality.
Technology
Mobile technology landscape is highly fragmented as the network
speeds can vary a lot, mobile users might be distributed across 100s
of countries and in-app SDKs need to be very reliable. Platforms that
can perform core ad serving functions faster and better at large scale
in this fragmented landscape than other platforms have a distinct
advantage over competitors. Additionally, private RTB enables a premium
Public vs. Private Mobile RTB Ad Exchange Comparison
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publisher to use first-party data in a controlled environment to increase
monetization and competition from the buyers. .
Inventory Quality
High quality inventory simply performs better, and can be defined in
many different ways. The definition of “high quality” varies for each
advertiser. There are some fundamentals, however, that help determine
inventory quality. Important factors include: a wide variety of highly
engaged users at scale, ad placement to optimize the end user
experience and a well implemented, low latency SDK to ensure high-
speed delivery of ad creative.
It is our conclusion that the private mobile RTB set-up drives significantly
better performance because it is able to accelerate advantages from
both technology and inventory to maximum capacity. This is because
the private RTB technology provider works closely with publishers to put
parameters in place that help maximize advantages in both areas.
Methodology
All data referring to private RTB is sourced from the TapSense platform,
which provides private mobile RTB software to a variety of first-tier apps.
Public RTB data was collected through TapSense research sourced
from publicly available data. All data has been indexed to obfuscate the
absolute numbers. This was done to ensure that third-party sources
were not singled out, and to protect their customers from data leakage
Public vs. Private Mobile RTB Ad Exchange Comparison
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that might violate a given platform’s terms of service. TapSense platform
data from April 2014 has been included in this document to help provide
more insight into how the TapSense RTB platform performs.
About the TapSense Private Mobile RTB Exchange
The TapSense RTB exchange is used by mobile app publishers to
manage advertising. The private RTB set-up allows publishers to choose
the buyers and put parameters in place to control how buying works
on their inventory. The platform supports a wide variety of ad formats
such as IAB banners, full-screen interstitials, native ads, video and other
innovative custom formats. In April 2014, the platform saw over 10 billion
ad requests total, across all regions.
Platform Stats
Queries per Second (QPS) levels: 30K QPS
RTB Spec: 2.1 Open RTB
Auction Mode: Second Price Auction
CTR range: 1.5% to 15.25%
Inventory: Top 25 App Store Apps
Platforms: Android and iOSvt
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TapSense Private RTB eCPMs are 213% Higher than Public RTB in the U.S.
• TapSense private RTB eCPMs in the U.S. are 213% higher
than public RTB
• TapSense private RTB eCPMs on iOS globally are 223%
higher than public RTB
• TapSense private RTB eCPMs on Android globally are 197%
higher than public RTB
Public vs. Private Mobile RTB Ad Exchange Comparison
7Public vs. Private Mobile Ad Exchange Comparison
TapSense Private RTB CTRs are 278% Higher than Public RTB in the U.S.
• TapSense private RTB CTRs in the U.S. are 278% higher
than public RTB
• TapSense private RTB CTRs on iOS globally are 250%
higher than public RTB
• TapSense private RTB CTRs on Android globally are 336%
higher than public RTB
Public vs. Private Mobile RTB Ad Exchange Comparison
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Public vs. Private Mobile RTB Analysis: Top 5 Countries by eCPM
United Kingdom
• TapSense private RTB eCPMs in the U.K. are 122%
higher than public RTB
• TapSense private RTB CTRs in the U.K. are 185% higher
than public RTB
Canada
• TapSense private RTB eCPMs in CA are 325% higher
than public RTB
• TapSense private RTB CTRs in CA are 318% higher than
public RTB
Australia
• TapSense private RTB eCPMs in AU are 513% higher
than public RTB
• TapSense private RTB CTRs in AU are 179% higher than
public RTB
Germany
• TapSense private RTB eCPMs in DE are 235% higher
than public RTB
• TapSense private RTB CTRs in DE are 267% higher than
public RTB
Public vs. Private Mobile RTB Ad Exchange Comparison
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TapSense Private Exchange April 2014 Data Release Analysis
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Major findings from the April data analysis are:
• iPhone eCPMs continue to be the highest, with the average
iPhone eCPM 111% higher than the TapSense platform’s
overall eCPM
• Competition across the top Demand-side Platforms (DSPs) is
strong, with the number one DSP’s eCPM indexing 240% above
the TapSense platform’s overall average eCPM
• The average CPM of the Top 5 DSPs is 176% higher than the
TapSense platform’s overall eCPM
• iPad CTRs index lower than all other platforms, but eCPMs remain
strong, at just 4% below the iPhone eCPM index
Public vs. Private Mobile RTB Ad Exchange Comparison
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TapSense Private Exchange April 2014 Data Release: eCPM Index
• The average iPhone eCPM is 111% higher than the
TapSense platform’s overall eCPM
• The average Android eCPM is 65% of the TapSense
platform’s overall eCPM
Public vs. Private Mobile RTB Ad Exchange Comparison
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TapSense Private Exchange April 2014 Data Release: CTR Index
• The average iPhone CTR is 112% higher than the TapSense
platform’s overall CTR
• The average Android CTR is 122% higher than TapSense
platform’s overall CTR
Public vs. Private Mobile RTB Ad Exchange Comparison
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TapSense Private Exchange April 2014 Data Release: Demand-side Platform eCPM Index
• The highest DSP eCPM is 240% higher than the TapSense
platform’s overall eCPM
• The fifth highest DSP eCPM is 140% higher than the TapSense
platform’s overall eCPM
• The average of the Top 5 DSPs eCPM is 176% higher than the
TapSense platform’s overall eCPM
Public vs. Private Mobile RTB Ad Exchange Comparison