About RTB House Real-Time Bidding Vickrey s model RTB is a technology consisting of 2 layers... 2

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1 Table of contents About RTB House... 2 Real-Time Bidding... 2 Vickrey s model... 2 RTB is a technology consisting of 2 layers... 2 Terminology associated with RTB... 3 Reach and Adexchange Networks... 3 RTB House Personalised Retargeting... 3 User segmentation... 4 Different strategies for optimising post-click and post-view models... 4 Trackers... 5 Dynamic creatives... 5 Product feed... 6 Full control... 6 Control panel and statistics... 7 Deduplication... 7 Why choose RTB House... 7 Security... 8 Personally Identifiable Information (PII) of users:... 8 Non-Personal Information collected by our services:... 8 NDA... 8

2 About RTB House Real-Time Bidding RTB House is a Polish technological company operating worldwide which develops its own tools for buying inventory and displaying advertisements in the RTB (Real-Time Bidding) model. With its rich scientific background and technological innovations, the RTB House team provides effective solutions aimed at supporting the online sales of products and services. The unique personalized retargeting algorithm, developed by the company, guarantees recognition of defined groups of Internet users according to their behaviour (browsing offer, resignation from purchase, buyer profiles), and gets the specific advertising message across to them. The company operates on 21 markets in Europe and Asia, including Poland, France, Germany, Bulgaria, the Czech Republic, Sweden, Spain, Turkey and the Netherlands. Currently, the RTB House team comprises over 60 people. RTB is a mechanism that makes it possible to purchase single ad impressions online in accordance with Vickrey s auction model. Vickrey s model A Vickrey auction is a type of sealed-bid auction, where bidders submit written bids without knowing the bid of the other people in the auction, and in which the highest bidder wins, but the price paid is the secondhighest bid 1 RTB is a technology consisting of 2 layers Adexchange system with API It provides information on all the available impressions on the publisher s website or network in real time. It accepts offers in the form of the highest bids from the associated advertisers. Demand Side Platforms They analyse offers of one or more networks and make decisions regarding the purchase and the maximum price of each ad impression. 1

3 Terminology associated with RTB Real-Time Buying: purchase of impressions depends on demand Audience Buying: purchase of impressions based on the possessed audience data Auction-based buying: purchase of impressions in the auction model Data-driven display: the content of impressions is created according to the collected data Impression-by-impression buying: a separate valuation for each auction Bid optimization: optimizing the mechanism of bid valuation Reach and Adexchange Networks So far, the RTB House system has been integrated with all the largest adexchange platforms and SSP networks in the world. These are: Google DoubleClick Admeta OpenX Project Right Media by Yahoo Rubicon Project ibillboard PubMatic AppNexus All the bids, as well as the records of ads served (including capping), are stored together in a single set of statistics used for automatic campaign optimisation. The number of ad impressions generated by RTB House and displayed within the reach of the above networks is currently above 2 billion per month (2.5 billion, August 2013) RTB House Personalised Retargeting Personalised retargeting is a mechanism that enables the display of advertising material adjusted to the user s needs on the basis of shopping intentions of this user and viewed products data stored in cookie files. Personalised retargeting is realised through dynamic creatives using product feed on advertising space purchased by means of RTB.

4 User segmentation In order to maximise the ROI of the sales process, we suggest the use of dynamically-created user segmentation based on highly-correlated data. The three basic segments of users are: Visitors Shoppers Buyers In the course of the campaign, each segment becomes divided into subsegments according to the probability of an action (purchase/lead) being performed by its users. Different strategies for optimising post-click and post-view models Reports on display advertising indicate that between 5 and 15% users generate over 50% of clicks. As a result, a group of users who never click, or click hardly ever, may be treated by automatic processes as of little value, whereas in fact it might be a segment that brings profits and is susceptible to advertising. In order to maximise the potential of retargeted messages, we recommend taking into account both post-click and post-view sales paths.

5 Trackers The data on user preferences and browsing history is stored by so-called trackers on the client s website. The kit enabling full monitoring of shopping intentions consists of 5 types of code (home page, product page, cart modification, initiation of the ordering process, placing an order) and, optionally, additional code on the product list. The trackers can be both in the form of js script or iframe components. All information on how to insert code can be found in the code manual document. Searches for a product Comes across your shop s website, but doesn t buy anything Retargeting makes it possible to return to a previous query or purchase Dynamic creatives Dynamic creatives are an advanced form of online banners which make it possible to display products and services dynamically and tailor them to the user s preferences. They can be either static or animated. Available sizes: 728x90 336x x x x x x90 300x x x x x x x x x x x60 300x250

6 Product feed Product feed is necessary to prepare and manage creative material. It is a file hosted in the shop s domain containing all product data, and in particular: Category name Product name Product ID Price Promotional price Link Link to an image Full control You can find the detailed specifications of the product feed in the manual (feed). The RTB House tool provides full control and monitoring of the efficiency of sales paths. At any given moment, the rates for post-click and postview settlements may be modified in the client s control panel in order to maximise the results. Post-click the system adjusts the strategy for purchasing impressions, favouring users who regularly click on ads. An advantage of this solution is its full transparency and simplicity in indicating the source of generated actions (last cookie wins). Post-view the purchasing strategy is selected on the basis of profiles of the users who have completed conversions. An advantage of such a solution is a deeper market penetration and a definitely higher number of correlated variables analysed. In order to indicate the correct source of a generated action, reports on last impressions are used (timestamps).

7 Control panel and statistics RTB House provides a tool for full control over the course of the campaign. The user may control variables such as: Pricing model CPC per each product category CPC per user segment Length of skip period for customers who already bought the product User may also view statistics and data for: Account balance Offers in category Sales reports with segmentation filters Financial history Sales history with value and timestamp Deduplication RTB House provides the possibility of deduplication of sales and leads in the form of a mechanism for recognising other conversion channels. Using this tool involves inserting code that captures UTM_SOURCE parameter on every landing page that traffic from other campaigns is directed to. The effectiveness of deduplication can guarantee up to 100% certainty and it depends on the degree to which individual sources have been marked. Why choose RTB House Wide range of accounting models Ability to set cookies deduplication Multi-user panel Better optimization algorithms More flexible approach to advertising creatives More flexible approach to customer

8 Security All data gathered by RTB House and generated as results of optimisation algorithms are encrypted and stored on server clusters with maximum security levels. Personally Identifiable Information (PII) of users: We do not collect personally identifiable information/data, such as names, addresses, addresses or telephone numbers. Non-Personal Information collected by our services: We use log files, cookies and web beacons to collect data from browsers, advertisers and third party sites to aggregate non-personal information that includes, but is not limited to, IP address, web pages viewed and timestamps. We also aggregate anonymous cookie data in order to identify audience segments, which helps advertisers in targeting their campaigns. The information we collect helps us to match audiences with advertisements and website content more accurately. It is also used to provide general statistics to our business partners and clients. NDA To provide full brand safety, RTB House provides non-disclosure agreement for all information and collected data.

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