The Power of Pricing panel: A Quick Look

February 8th, 2010    Posted by: kleano

0122Enlightened minds gathered in at the beautiful Tribeca Cinemas Gallery in New York last Thursday, as the Rubicon Project hosted a panel discussion about The Power of Pricing: Defining New Strategies for True Optimization.

Thank you to our panelists: Tommy Moreno, Principal and Managing Director at The Glenroe Group; Elizabeth Francis, CMO at Intelligent Beauty;Ingrid Sanders, Director, AdAdvisor at TARGUSinfo and Chris Karl, former VP of Sales at Yahoo. Their expertise and insight shed light on current market challenges such as:

* More money coming online, but the continued perception that price is eroding
* Publishers exercising more pricing control over their current inventory
* Understanding pricing and how the marketplace is evolving, which is crucial to a publishers long-term revenue growth
* Ad rates being associated with the cost of producing it, not the value it brings to advertisers

Missed us in New York? For the full video of the event, email pricingevent@rubiconproject.com.


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Power of Pricing Panel in NY

January 27th, 2010    Posted by: kleano

Did you know a 1% gain in price realization can yield a 5%-10% net income gain? With advertisers moving more money online and increasing their interest in mobile and video, it’s more important than ever for publishers to re-examine their current pricing strategies. When was the last time you updated your rate card? Are you examining your audiences and thinking about packaging on a holistic level across all your online properties?

On Thursday, February 4th in NYC, the Rubicon Project will host a panel covering the hottest topic facing premium publishers in 2010 – Power of Pricing: Defining New Strategies for True Optimization.

During this FREE event, you can expect to hear about new ways you can approach valuing and pricing your inventory to ensure you’re extracting the highest dollar possible and developing a sustainable pricing framework.
pricing
Speakers include: Tommy Moreno, Principal and Managing Director at The Glenroe Group, a business consulting firm that helps companies with pricing and revenue optimization strategy; and our own Josh Wexler, VP of US Publisher Development.

Because this is a free event, RSVPs are highly encouraged. To request an invitation, email pricingevent@rubiconproject.com


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Premium Publishers Focus on Price Integrity in 2010

January 25th, 2010    Posted by: njordan

The latest edition of our Online Advertising Market Report takes a look back over Q4 and turns an eye to the year ahead and the market shifts that are impacting premium publishers and sales channel partners. On the publisher front, there is proactive movement to extract more pricing control over their current inventory. Based on feedback from premium publishers we work with, there are three primary strategies likely to be deployed as they work to regain pricing control in 2010:

·               Identifying, packaging and selling audience more effectively
·               Segmenting inventory and evolving digital pricing strategies
·               Aggregating inventory, “premium” networks, and collaboration

We go into depth on each of these topics in the Market Report but one in particular could be more of a challenge for premium publishers –  Segmenting inventory and evolving digital pricing strategies

(Excerpted from the Rubicon Project 2009 Online Advertising Market Report: Q4 Emerging Trends & Outlook)

Premium Publishers Focus on Price Integrity

According to US-based Forrester, 59% of US advertisers plan to increase their digital budgets — at the expense of offline executions. As a result, online marketing spend will hit $55 billion in 2014. Supporting this statistic were the many announcements in 2009 from major brand advertisers who are planning a decrease in traditional ad spend and an increase in online. Most notable on this front in Q4 was Pepsi’s announcement to forego airtime during the Super Bowl and apply those dollars online instead– to the tune of around $20 million dollars.

As brands reconsider their in-house marketing strategies and related spend, they are putting more stock in the value of properly segmented and targeted online ad inventory.  As audience buys and the accompanying Q4 rates demonstrate, advertisers don’t mind paying for value.

Easing advertisers and demand partners resistance to paying higher CPMs for unsold inventory means changing attitudes about the perceived worth of unsold inventory. In 2009, we saw many premium publishers and their sales channel partners look at this segment of inventory in a new light, as industry leaders lobbied that the intrinsic value of unsold ad space was worth much more than the going rates.

Jim Spanfeller opined in PaidContent mid-year that “when all is said and done, there really is no “remnant” inventory on the web, just as there is little to no real remnant inventory elsewhere. We should price online inventory similarly to how we price offline units. To think otherwise is to tragically slow the growth of the industry.”

Patrick Mersigner, Senior Director of Interactive at CreativeLoafing.com, noted that one common problem in setting pricing is that “publishers base ad rates on the cost associated with producing it, not the value it brings to advertisers.”

Premium publishers have a significant opportunity to increase revenue through more informed pricing. Most publishers have not had the luxury of devoting the necessary time and resources to identify their customers and assign new value to their site inventory. But what may have been perceived as a nice-to-have is now certainly a must-do.

“We saw pricing integrity emerge as one of the most discussed topics at events this past year when premium publishers finally moved away from treating impressions as a value-add and acknowledged that coming up with CPMs in a vacuum is a failed model. Understanding pricing and how this evolving marketplace is going to work is crucial to their long-term revenue growth,“ said Rob Beeler, VP Content and Media for AdMonsters, a professional association dedicated to online advertising operations and technology.

“The natural thought is to sell more to more people but that’s not optimization. True optimization is extracting the most value for the product that is in demand. Given the increased interest from brands in premium online ad inventory, premium publishers need to develop a new framework of a demand-based pricing model that is grounded in consumer insight and strong analytics to drive business results and a give a competitive edge,” said Tommy Moreno, Principal and Managing Director at The Glenroe Group, a business consulting firm that helps companies with pricing and revenue optimization strategy.

“Even a 1% gain in price realization can yield 5% to 10% net income gains. For example, for a company with average economics a 1% improvement in price—assuming no loss in volume—can increase operating profit by 11%. To find the sweet spots and build an informed pricing framework premium publishers need to start analyzing their own data and performance such as trend or historical demand levels, price elasticity, and how inventory is being packaged,” added Moreno.

Read the full Q409 report, as well as past reports, here.



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500 Billion Ads Optimized

January 22nd, 2010    Posted by: dfearman

500 billion. That’s a heck of a lot of ads optimized – but that is exactly the mark we hit last night. To give you a sense of scale, hitting our 500 billionth ad impression means that we are optimizing about 1.6 billion ads a day, breaking down to about 18,519 ads per second.
For a 2+ years old company, we are very proud of this accomsign1plishment. And as always, we’d like to thank the premium publisher customers that entrust us with their inventory, and the demand partners for making it possible to reach this significant milestone.

In the last year, we’ve expanded internationally to several continents, continued enhancing our technology and support offerings and welcomed hundreds of new customers to our developing global family. It’s our job to connect publishers with all the disparate sources of demand (ad networks, exchanges, rep firms, other pubs, demand side platforms, etc) in the digital marketplace today.

And in honor of this celebration, we thought we’d share five things you might not know about the Rubicon Project:

1. Our name started out simply as a code name when the company was being conceptualized. We had intentions of changing it after we launched but due to adamant feedback from publishers who enjoyed being part of our “project” to automate the industry, we decided we had to keep it as is.

2. Our first business plan was sketched out on a napkin by our four founders as they sat in a Starbucks in LA.

3. Our original office was 2,000 square feet with one bathroom and 40 team members by the time we moved out– talk about getting to know each other. Our swag closet (now we have two) was in the bathroom and the space was so small that meetings used to take place in the parking lot.

4. Our LA office is the old set of the show “24” from season one. Rumor also has it Snoop Dogg laid down a few tracks in our sound room and James Cameron used our theater to edit film while shooting the movie “Titanic”.

5. One of our first customers turned into one of our leading team members on the publisher account side, Erin Mayo.

1 trillion, here we come!


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Q&A with ClickFacts CEO, Michael Caruso

January 12th, 2010    Posted by: dfearman

photo-of-michael-caruso1

Today we are excited to announce the launch of Rubicon Security, a new offering within our REVV for publishers™  platform, and our partnership with ClickFacts. Through the integration of automated ad tag monitoring technology from ClickFacts, Rubicon Security identifies offending ad tags and their source, enabling our publishers customers and demand partners to stop malware or “malvertising” attacks before they reach consumers.

In light of our recent partnership, we took a few minutes to chat with ClickFacts CEO, Michael Caruso, to share additional details on his company and insight on how malware affects the industry.

What is ClickFacts?
ClickFacts is a Risk Discovery software provider that works with online advertisers, networks and publishers to help identify and mitigate risk. We provide a suite of security solutions that help detect offensive content and malware at its earliest point.

Why did you decided to start ClickFacts?
ClickFacts was initially created to detect click fraud.  Because we are a behavior-based software, we soon discovered a much bigger problem existed.   We realized early on that there was a need for an automated solution to detect offensive content and malware.  We realized that the majority of Botnets weren’t falsely clicking on ads but were designed to perform malicious activities such as identity theft, spyware install, etc.

Why has malvertising become such a problem?
There are many reasons:

  1. It’s a lucrative business with low costs of entry and very little, if any legal ramifications.  (only a few countries have laws on the books related to cyber crime)
  2. Crime rises in a bad economy and many of these rings have ties to organized crime in Eastern Europe and Asia
  3. It’s somewhat easy to facilitate.  “Off the shelf” Exploit kits can be bought on the black market making malvertising almost a plug and play operation
  4. Automated online advertising environments; including ad exchanges, lend themselves to exploitation due to the limited amount of human interaction
  5. Professional, sophisticated criminals are learning to buy direct. Brands such as Gawker Media, New York Times and Guardian are recent victims of  Malware via direct buys

What are some examples of malvertising?
An ad which installs executable files onto a user’s computer - like a keylogger, which will then store and record personal passwords with the intention to steal a person’s identity.  A spyware application is installed on the user’s machine and they are directed to purchase a license to remove the infected applications –the very same app that was installed.

How does this partnership with the Rubicon Project benefit sales channels and Web publishers?
Through our partnership, we are automating processes to ensure content integrity, higher CPMs, user and brand protection, as well as terms of service compliance. Our ultimate goal is to provide a safe, high quality ad environment.

How does malvertising impact a company’s business?
There are multiple ramifications from serving malvertising: consumer confidence, brand implications and damage, and the hard and soft costs of tech recovery.  I met our head salesperson, a seasoned Internet “old timer”, when he was advocating the use of ad blockers to the industry because he was hit by malware.  Consumers will take action and not go to infected sites or block ads.

What else can publishers do protect themselves in addition to working with companies like ClickFacts and the Rubicon Project?
1. Monitor your ads consistently, particularly at night, weekends and around the holidays.  Safe ads can be switched out or malware can be designed to trigger after a certain behavior. So initial testing is not enough.
2. If accepting an online ad order from a new client be cautious and suspicious, i.e.) if a large campaign has to run right or away or cost isn’t an issue. Be especially suspicious of any cash purchases.
3. Use common sense:  If something doesn’t feel right, question it.  Even if all the references check out go with your instincts first.  It’s better to be cautious.


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Webinar: Turning Audience Into Dollars

December 18th, 2009    Posted by: dfearman

Bummed you miss the webinar about our Targeted Audience Program (TAP) this week? Don’t worry, we’ve got you covered. We recorded the session, led by our very own VP of Demand Development, Raj Chauhan. You can watch to the entire presentation here: http://bit.ly/69LpGS

If you missed the memo all together and don’t know what we are talking about – on Thursday, December 17th we hosted a webinar on how to make the most of your high-quality audiences and expand your reach, build customized audiences and sell a new tier of ad products through the Rubicon Project’s Targeted Audience Program.

If you have any questions or would like to know how to get started with TAP, please feel free to email audience@rubiconproject.com

Happy Holidays!


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Candystand.com is making a Good Impression

December 13th, 2009    Posted by: kleano

The holidays are a time for giving and we want to thank our generous customers who have pledged a portion of their site impressions to the World Food Program through Good Impressions, a new charity program for premium publishers.

The World Food Program is the world’s largest humanitarian organization, servicing 80 countries worldwide; donated ads benefit Shop Against Hunger and Gift of Hope, online campaigns which raise funds for the World Food Program during the holiday season.

“We’ve come to expect The Rubicon Project to do an outstanding job of managing and optimizing our display inventory, but we’re particularly thrilled that they’ve given Candystand.com the opportunity to turn that inventory into agents of change,” said Scott Tannen, President of Funtank LLC/Candystand.com. “This is a great example of how they’ve not only helped our businessmaximize our revenue but also helped us to serve our consumers and the community.”

The WFP is funded completely by voluntary donations so by participating in Good Impressions, our publishers are helping the WFP reach hundreds of millions of people in over 80 countries. You can support the fight against global hunger this season by clicking on the ads below on our participating publisher’s sites and making a direct donation to WFP. Every 6 seconds, a child dies hungry. Take a second of your time to prevent it.
goh_animated300x250shop-against-hunger


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Privacy Policies: A Must-Read

December 11th, 2009    Posted by: kleano

With estimates of revenue from behavioral targeting nearing $1 billion, privacy has become the hot-button issue not only in the industry but on Capitol Hill. Last week, the FTC held the first of three Roundtable discussions about data collection. The same day, Yahoo released its online consumer privacy tool; just a few days later, Facebook released its new privacy policy, which highlighted all the changes made and what that means to users.

Bennet Kelly of the Internet Law Center, which presented at the FTC’s roundtable discussion last Monday, has been anticipating the shift in the way companies present their data collection practices. As a Rubicon Project privacy consultant, Kelly drove the revision process of our most current privacy policy– leading to the debut of our new version on November 12.

Only 22% of Internet Users regularly review privacy policies for the sites they visit so we made ours different. Unlike the average privacy policy which is approximately 2,500 words, the Rubicon Project offers a simple 300 word summary that gives users a quick, digestible overview of what our privacy policy entails.

“The trend going forward in the industry is the layer policy: giving basic facts and then breaking it down,” Kelly said. “The Rubicon Project is taking a big step in helping consumers understand their new policy, but one site and one policy is not going to address all of these data concerns. What will have an impact is if each company makes more efforts like the Rubicon Project so that we create an important dialogue between the internet and consumers: apprehension in online commerce is based in fear as opposed to based in reality and by being as transparent about your data collection policies, you can eliminate netphobia and make others feel comfortable going online.”

We’re pleased to be part of the first wave of companies empowering consumers to take control of their data. Our transparency page allows users to find all information we’ve collected and associated to their computer because we believe an informed consumer is a protected consumer. Transparency is key in addressing current concerns surrounding data, which is why we applaud the IAB’s consumer education efforts - which aims to make great strides in the industry’s effort to develop self-regulatory policies and allay online fears.

Continuing to foster discussion and educate the market on privacy policies, the Rubicon Project will be leading two panels focused on privacy topics at SXSW Interactive, taking place in Austin, TX in March 2010. Check out www.SXSW.com for more details.


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AlwaysOn’s Top 25 Women in Tech to Watch

December 10th, 2009    Posted by: njordan

julie-mattern

“Well deserved, proud to be working with you!”

“What a phenomenal - and much-deserved - honor. What a list, and what great recognition.”

“Congrats - You are amazing!”

“That’s a super impressive list that is even more impressive with you on it.”

Those are just a few of the comments that our Founder and Chief Technologist, Julie Mattern, received after news got out that she had been appointed to AlwaysOn’s first annual “Top 25 Women in Tech to Watch” list. The winners were celebrated at a special luncheon during Venture Summit Silicon Valley earlier this week.

No doubt she will be particularly mortified over all the gushing and especially that it’s being done so publicly but we just can’t help ourselves.  To say that we are proud of Julie is an understatement.

She has been instrumental in the development of the internet advertising industry ever since she began more than 10 years ago, starting with Yesmail.com where she was responsible for the development of the company’s core product, leading to a $524 million sale to CMGI. Julie was also the first developer of adMonitor (L90, Inc.) where she served as Director of Engineering. She oversaw all engineering directives with a specialization in adMonitor’s user interface that was highly regarded as being the industry’s best, for its ease of use and rich feature set.

After adMonitor was acquired by DoubleClick, Julie was recruited by Fastclick (now ValueClick Media) where she managed the development of the company’s business data systems and built a comprehensive suite of reporting tools. Most recently, Julie was the Director of Operations Engineering at Adconion Media Group (formerly EuroClick), where she focused on developing technology to improve the organization’s daily workflow processes to provide operational efficiencies.

We could go on but we’ve likely embarrassed her enough for one year (good thing a new one is right around the corner!) The employees at the Rubicon Project (especially the women) greatly appreciate that AlwaysOn created this new list to begin to spotlight the powerhouse women in technology who are kicking ass and taking names. Maybe next year AlwaysOn will be convinced to issue a press release, post something to the site and make a much bigger deal out of this recognition that is appreciated by so many. Update: AlwaysOn has written up a great piece about the award that’s currently on the homepage.

Check out the full list below.

Gina Bianchini CEO and Founder  Ning
Lucy Bradshaw Executive Producer Electronic Arts
Catherine Cook Founder myYearbook
Caterina Fake Founder Hunch and Flickr
Eileen Gittens CEO and Founder  Blurb
Erin Jansen CEO and Founder  NetLingo
Mary Lou Jepsen CEO and Founder  Pixel Qi
Jasmine Kim CEO   ImageSpan
Susan Leschine, Ph.D Founder and Chief Scientist Qteros
Darlene Liebman Co-Founder HowCast Media
Julie Mattern Founder and Chief Technologist The Rubicon Project
Marissa Mayer VP, Search Products and User Experience Google
Alicia Morga CEO Consorte Media
Tammy Nam VP, Marketing and Content Scribd
Anna Patterson President and Co-Founder Cuil
Ashley Qualls Founder WhateverLife
Lisa Rutherford President Two Fish
Sheryl Sandberg COO Facebook
Ann Shepherd VP, Marketing Open Table
Rashmi Sinha CEO and Co-Founder SlideShare
Lisa Stone CEO BlogHer
Gina Trapani Founding Editor Lifehacker
Mena Trott Co-Founder and President Six Apart
Donna Wells CMO Mint
Anne Wojcicki Co-Founder, President Products 23andme


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Turning Audience Into Dollars

December 9th, 2009    Posted by: dfearman

Publisher Revenue

We know 2010 is going to be the year of using data to reach audience. So as we wrap up 2009 and gear up for the new year, we wanted to introduce you to our Targeted Audience Program (TAP) with an announcement today followed by a webinar next week. Built on the REVV for publishers™ platform, TAP helps premium Web publishers and their sales channel partners make the most of high-quality audiences and expand their reach, build customized audiences and sell a new tier of ad products.

Online data providers have emerged in growing numbers to provide more perspective on users, but no single data company has complete view of audience. One company may recognize that a user comes from a particular geographic location; a different data provider knows the searcher is 29; a third may recognize the same user as a woman. But without technology to connect those disparate data points, publishers have not been able to effectively sell against their audience to advertisers.

JT Batson, EVP of Revenue and Global Development comments in today’s announcement: “Publishers, sales channels and brands alike benefit from efficiency of audience targeting as it results in higher rates and delivery of precisely the audiences that advertisers want to reach. As of this month, more than 10 percent of advertising dollars flowing through the Rubicon Project’s REVV Marketplace are spent exclusively on audience-targeted buys, compared to 5 percent at the start of Q409. The growth is a clear indication that our partners and their advertisers are satisfied, and benefiting from the ability to reach precisely targeted audience segments through the premium publishers who are leveraging our Targeted Audience Program.”

If you are interested in learning more about our Targeted Audience Program, please join our live webcast on Thursday, December 17 at 1pm PST/4pm EST. Register here.


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