Mobile Real-Time Bidding and Predictive

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1 Mobile Real-Time Bidding and Predictive Targeting AdTheorent s Real-Time Learning Machine : An Intelligent Solution FOR Mobile Advertising

2 Marketing and media companies must move beyond basic data analysis and leverage insights into predictable business outcomes. David Morgan, CEO of Simulmedia The next generation of breakthrough applications to leverage big data will need to be so easy to use that it would enable just about anyone with a little domain expertise to readily identify, process, and extract the related value in a largely automated fashion. Then we will truly see the potential value of big data being realized. Claudio Marcus, EVP of Marketing and Research, Visible World AdTheorent s ground-breaking application of the Real-Time Learning Machine (RTLM) learns in real time, generates data-driven predictive models on the fly and predicts faster than any other data mining technology, yielding demonstrable results for AdTheorent s mobile advertisers. Furthermore, RTLM is simple and easy to use, requiring far fewer resources to operate yet driving superior results against competitive technologies. Saed Sayad, Chief Data Scientist, AdTheorent

3 The Mobile Advertising Utopia That old saying Knowledge is Power has never been truer than in the world of mobile advertising, where knowledge is available in the form of seemingly limitless data. Data flows from countless digital mobile streams containing billions of data points, offering an opportunity for understanding, predicting and ultimately delivering the knowledge marketers and advertisers seek. But making sense of all that noise has, until now, been a path of frustration for advertisers and agencies whose business depends on converting data into predictable business outcomes. While Real Time Bidding (RTB) is beginning to deliver value in mobile advertising much in the way it has proven invaluable online, mobile RTB remains an under-utilized and often mis-applied technology. AdTheorent s innovations are based on an entirely new way of looking at the RTB process, applied to a mobile solution that was built from the ground up to address the specific needs of mobile advertisers. We re no longer limited to surveying the footsteps behind us AdTheorent s unprecedented advances in intelligent real-time predictive data modeling are driven by AdTheorent s application of the Real-Time Learning Machine (RTLM), a patent-pending predictive modeling and targeting solution that enables advertisers to reach optimum audiences with their advertising dollars.

4 The Rise of Real-Time Bidding (RTB) Now Hits Mobile Advertisers use of Real-time Bidding (RTB) solutions continues to grow expeditiously both in the United States and around the world, with worldwide digital RTB spend predicted to reach $13.9 billion by In fact, spending on RTB has expanded more rapidly than any other segment of the digital advertising industry. Why is this? The benefits of RTB are clear and financially driven. Most fundamentally, RTB enables buyers and sellers to adjust their bids dynamically based on desired targets and available inventory market conditions filtered through data such as demographics, behavioral factors, and geographic data. All this technological innovation was designed to allow for improved ad targeting and greater campaign effectiveness all in fractions of a second. As a result, publishers save money while increasing inventory yield. Meanwhile, agencies are increasing their return on advertising spend (ROAS), which in turn boosts their profitability. RTB BENEFITS Ad Buyers/Ad Agencies Ad Sellers/Online Publishers Accurate audience targeting Campaign control and transparency Improved return-on-advertising spend (ROAS) Greater yield optimization Higher value of inventory Incremental revenues for display ads sold outside of direct relationships with buyers It s no surprise that RTB is now rapidly making its way into the mobile advertising market. However, not all RTB is created equally, especially in mobile. The effective use of RTB depends upon the intelligent and efficient use of data, and using technology capable of integrating rich data (e.g. demographic behavioral etc.) into the RTB process. Thus, a critical variable in the effectiveness of any RTB platform, especially mobile, is the speed and accuracy with which the platform can process massive amounts of data. If executed well, data-driven RTB connects advertisers with their target audiences one impression at a time.

5 AdTheorent Delivers The Intelligent Impression Through the Real Time Learning Machine (RTLM) AdTheorent s intelligence-driven platform maximizes the potential value of RTB-based media purchasing. AdTheorent s platform is integrated with 35,000+ mobile inventory sources and analyzes hundreds of thousands of potential impressions per second based on highly enriched demographic information, behavioral factors, location data, device features, as well as other advertiser-specified targeting criteria. Using predictive modeling to identify impressions with a higher propensity for conversion and awareness lift, the AdTheorent platform places bids in realtime within the pricing parameters established by the advertiser. The result to brands and marketers is higher conversion rates at a significantly lower cost the Intelligent Impression. The result to brands and agencies is higher conversion rates at a significantly lower cost. So how is this kind of intelligence powered? AdTheorent s Real-Time Learning Machine (RTLM) AdTheorent s innovation a patent-pending, advertising-specific application called RTLM (the Real Time Learning Machine ) is quickly becoming a driving force within the mobile advertising industry, built specifically for mobile advertisers to intelligently leverage immense data sets required for effective RTB. A key differentiator of RTLM is the speed of the data enrichment process as it is confronted by an alwaysexpanding data set, including purchase data, behavioral data, psychographic data, ancillary data and social data. Even post-click data is used, derived from AdTheorent s proprietary Traktion TM product that delivers data-driven beyond the click analytics with highly dynamic post-click conversion data. RTLM not only processes vast amounts of data, but also continually learns in real time from the data, constantly enhancing the intelligence of RTLM to better predict outcomes. The result is RTLM s unmatched accuracy in identifying the best impression in any given marketing condition.

6 1sT party information AUDIENCE DATA ENRICHMENT MoBile Ad request database 3rd party information + new data BrAnd interaction Choose optimal Bid price Find BrAnd MATCh Choose optimal CreATive CAlCUlATe ChAnCe of Conversion Top 10 Things Advertiser Want - Delivered By AdTheorent s RTLM RTLM is not just a new predictive algorithm; it is a totally new approach to data analysis. Traditional predictive modeling is a much more time-intensive endeavor, and is nowhere near as flexible as RTLM. With AdTheorent s RTLM, 100 different predictive models can be tested in one second and then percent of those noisy or correlated variables can be eliminated on the fly. The real-time learning that is deployed in RTLM is the breakthrough that has produced the success (50% -500% uplift) that we are seeing in campaigns that used this system. The net result is that better predictive analytics allow AdTheorent advertisers to purchase better quality Intelligent Impressions that consistently deliver better results and increased ROI.

7 Top 10 Advertiser Priorities Delivered With AdTheorent s RTLM 1 Accurate audience targeting AdTheorent s Real Time Learning Machine (RTLM) provides the industry s most effective tool for intelligent audience targeting, leveraging demographic information, behavioral factors, location data, device features, as well as other advertiser-specified audience targeting criteria. 2 An intelligent and responsive 2nd generation mobile ad network AdTheorent was developed with the brain of a Demand Side Platform, without any publisher bias so that advertisers are assured the highest quality mobile inventory. 3 Campaign control and transparency - evolving campaign recommendations Using real-time learning methodologies, AdTheorent delivers intelligence-driven and transparent buying that embodies a broad spectrum of publishers, rather than a select set of inventory. Each one of the 35,000 publishers we see is scored based on performance and quality of data. 4 Moving from a two-dimensional to a three-dimensional market view AdTheorent s RTLM makes the move from a two-dimensional to a three dimensional market view a reality by using vast amounts of 3rd party data, including Experian, weather information, GeoSpatial behaviors, and more. 5 Improved return on advertising spend (ROAS) Advertisers get more ROAS using RTLM because they only purchase ideal impressions, as a result maximizing the likelihood of user-brand engagement. 6 Speed of real time feedback latency issues Unlike traditional forms of data mining the RTLM has zero latency because the model is continuously being updated as conditions change. 7 Balancing the right time, right message, right place AdTheorent-driven campaigns analyze the audience profile of each potential ad impression in real-time, then enrich the profile with additional first party and third party demographic, behavioral, psychographic, environmental, sentiment, keyword and other contextual insight.

8 Top 10 Advertiser Priorities Delivered With AdTheorent s RTLM 8 Focus on granular measurement The granularity of data acquired within AdTheorent s RTLM is second to none, delivering unprecedented ROAS value. By using RTLM, AdTheorent delivers insights on the who, when, where, and how of your mobile consumer. Profile The 2012 without Charmin RTLM Profile Profile with RTLM iphone & Android Samsung Galaxy A<ain 4G Gender: Female Android 2.3 Gingerbread Age: 25+ Language Se5ngs: Spanish Prepaid/No Contract Tablet: ipad Tablet OS: ios Carrier: MetroPCS App vs Site: Apps Content: Entertainment Language SeDngs: Spanish Gender: Female Age: Day of Week: Sunday Time of Day: 7:00pm 9 Maximizing Click-Through Rates and Reducing Cost Per Acquisition The average CTR for mobile static banner units approaches 0.4%. In contrast, AdTheorent s RTLM has delivered CTR increases from 0.4 to 1.25%, and as high as 2.5% for some campaigns. We have also seen a 65% across-the-board reduction in CPA costs. 10 A need to keep the process SIMPLE RTLM is simple for the advertiser because it s integrated into our platform; it learns on its own.

9 The Power Of Results Advertising AdTheorent s RTLM provides the only viable predictive modeling platform to process Big Data with zero-latency. The unprecedented power and efficiency of our solution brings new levels of modeling accuracy and precision to the mobile ad market by fully leveraging the benefits enabled by RTB. As a result of AdTheorent s RTLM system and its unparalleled ability to filter-out undesirable targets, participating advertisers have enjoyed improved engagement levels, such as uplift in click through rates (CTR) and awareness, and reductions in cost per acquisition (CPA) rates. In some campaigns the uplift has been as high as 250%. CPA RTLM s unprecedented power and efficiency brings new levels of modeling accuracy and precision. CTR For one CPG client, AdTheorent launched a campaign through the core RTB platform but without RTLM, and showed CTR s at 0.60%, which is 61% above the industry benchmark of 0.37%. After RTLM was utilized, CTR climbed an additional 64%, averaging 0.98% with a peak at 1.73% CPG CAMPAIGN RESULTS 2.00% 1.80% 1.60% 1.40% 1.20% 1.00%.80%.60%.40%.20%.00% AdTheorent launches RTLM on November 23rd 164% Increase over industry average CTR Industry Average CTR 0.37% CTR Peak 1.73%

10 The Power Of Results Advertising A leading business technology client experienced a decrease in CPA rates by over 70% when RTLM was added to the campaign. CPA CAMPAIGN RESULTS n9% n8% n7% n6% n5% n4% n3% n2% n1% 133% Increase in sign ups from week 5 to 6 241% INCREASE IN EFFICENCY IN WEEK 8 COMPARED TO WEEK 1 week 1 week 2 week 3 week 4 week 5 week 6 week 7 week 8 n9$ n8$ n7$ n6$ n5$ n4$ n3$ n2$ n1$ CosT per ACQUisiTion registrations Conclusion AdTheorent s ground-breaking advances in intelligent predictive modeling enable only AdTheorent to provide advertisers with an efficient way to fully leverage RTB and reach their desired audiences, one impression at a time. AdTheorent innovating to meet the demands of advertisers to produce results in the mobile RTB world.

11 About Dr. Saed Sayad A pioneering researcher in real-time data mining and Big Data analysis, Dr. Sayad has designed, developed and deployed many business and scientific applications of predictive modeling. The author of An Introduction to Data Mining, Dr. Sayad teaches a popular graduate course in data mining at the University of Toronto, where is an adjunct professor. About AdTheorent - Premium Predictive Mobile Advertising AdTheorent is the world s first intelligent Real Time Bidding (RTB)-enabled mobile ad network, powered by a platform built from the ground up to address the specific needs of the mobile advertising ecosystem. AdTheorent s RTm Platform integrates its 35,000+ mobile inventory sources and analyzes hundreds of thousands of potential impressions per second based on highly enriched demographic information, behavioral factors, location data, device features, as well as other advertiser-specified targeting criteria. Using predictive modeling to identify impressions with a higher propensity for conversion and awareness lift, the AdTheorent RTm Platform places bids in real-time within the pricing parameters established by the advertiser. The result to brands and marketers is higher conversion rates at a significantly lower cost -- The Intelligent Impression. For more information visit:

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