How game developers break through tradition and keep up with the international pace?

At the  Global Traffic Conference 2020 (GTC) held recently, Lashanne Peng Huishan, Business Director of PubMatic’s mobile Asia-Pacific region, attended the conference and delivered a speech on “How game developers break through tradition and keep up with the international pace, using programmatic head bidding to realize the largest income Change? “.

Peng Huishan stated that in this programmatic monetization environment, it is necessary to use the advantages of programmatic and head bidding to maximize programmatic revenue or advertising monetization revenue.

The following is the original text of the speech:

Today I am very honored to communicate and share with you on behalf of PubMatic. Let me give you a brief introduction to PubMatic. I believe that many of you have already started to cooperate with PubMatic. PubMatic is an SSP service platform that originated in the United States. It currently has more than 500 employees worldwide and is also an agent of many international brands.

So before understanding how to optimize the current monetization strategy, we must have a basic knowledge of what requirement advertisers have for media buying and screening. Advertisers of international brands actively promote the transparency of media purchases, and have certain requirements for the selected media channels and partners, and now many developers choose to cooperate with several monetization partners. This is actually useful for advertisers to promote a transparency environment.

What are the ways to support the promotion of realizing environmental transparency? First our own media needs to be able to support relatively standard models in the industry such as ADS TXT, APPADS TXT, etc. These 4 functions are basically simple codes. Put the codes on the APP official website, and everyone will know which of your partners are Direct channels, which channels are subject to intermediaries, this method is conducive to directly improving transparency.

Advertisers, in addition to requirements for transparency, are also very concerned about visibility. Whether the displayed advertisement is really known to users is particularly important. IAB has launched a standard SDK in the industry, which is what we usually call OPEN MEASUREMENT SDK to provide customers. After accessing the SDK package, developers can provide visibility parameters to advertisers to let them know that the ads are not only displayed but also seen by users. This parameter is very useful for advertisers.

Except for the two very important aspects of visibility and transparency, advertisers also pay attention to the media’s brand safety. Brand advertisers are more inclined to choose media through PMP and PD, through the process of whitelisting and PMP delivery methods, in addition to third-party tools, OMSDK can provide visibility parameters, through keywords and blacklists, directly blocking Media content that threatens brand safety.

Today’s focus is to improve everyone’s advertising monetization effect through programmatic and synchronous bidding monetization model, and bring greater benefits. It is still recommended to maximize revenue through programmatic + realizing income from four main aspects.

The first point is how to enrich the upstream channels and maximize the entire channel resources; and how to optimize the monetization effect of the open market. Secondly, when considering overseas promotion and monetization, we must know the requirements of overseas screening media and some basic rules and standards; finally, we must maintain a relatively basic but best-effect practice in programmatic monetization.

First, enrich the upstream channels. The most important part of the entire program is the upstream channel, because the upstream can provide the media with richer resources, and the advantage of programmatic’s monetization effect for the media is to enhance the competitive environment of the entire upstream channel so that the entire monetization model can be The competitive environment for every request is maximized. Head bidding is such a model. Through the head bidding model, the highest bid is completed, the media ECPM value is increased, the delay problem is reduced, and the entire realization effect is maximized.

The difference between waterfall flow and head bidding is that head bidding cuts down the flow of waterfall flow. In the entire bidding environment, each request returns the highest ECPM back to the waterfall flow mode. It is possible to ignore the highest SSP, because If there is a problem of waterfall sequence relationship, the highest SSP return problem may be ignored.

After understanding the advantages that head bidding can bring, many American developers are using the monetization model of head bidding. In their display ads or video ads, the overall upstream optimization effect and fill rate effect have also increased significantly. A significant increase in overall revenue to 49%.

And if you want to access this top bidding monetization model, the most basic tool in the market is open source products. Of course, third-party products and channel providers are also used, because they have their own products and can directly transfer Access to their products. The difference is that open source is more flexible, can be adjusted in its own existing monetization environment, and can most effectively integrate it into existing monetization methods. The third-party head bidding products can only directly access the entire package through SDK or other access methods, and then cooperate with the product in the existing environment to make optimizations.

Regarding the issue of how to effectively realize the monetization of the open market, we all set a reserve price for their own media. Then according to the overall environment, this reserve price can be adjusted, which will help to re-examine whether the upstream channels have demand for their own media.

Some of the current docking strategies or docking methods, if most of you are still focusing on aggregation, you must consider how to integrate the head bidding monetization model into the existing aggregation environment, because head bidding brings the greatest advantage.

If the media value or ECPM value can be increased first through the head bidding, the next waterfall or head bidding will be adjusted according to the media value to make the reserve price configuration, according to the reserve price strategy, ECPM strategy, and filling strategy to make a balance. The key point is that, especially in the area of advertising monetization, we can obtain more upstream resources and meet the greater upstream demand. Of course, the monetization effect of the media will be better.

Making one’s own media comply with the entire international standard will be more effective to obtain a better advertising budget from international advertisers or upstream advertising DSPs. In particular, brand advertisers are still in favour of a transparent environment because they can provide parameters so that they can use them to more effectively improve the monetization effect of the entire advertisement for the audience, the advertiser’s budget will also increase. Because advertisers have spent money and the ads are displayed, they still hope that the ads can be seen by the real audience.

A very popular topic now is iOS14. In the future environment, without a device ID, how can advertisers deliver advertisements programmatically more effectively?

APP developers have an advantage, because compared with the PC terminal, more parameters can be obtained. In the absence of a device ID, there are still many parameters that can be provided to advertisers. They can still use APP parameters to target their audiences, such as latitude and longitude, user ID, and age range to help advertisers improve the overall monetization effect.

The last very important part is how to implement some basic operations in a programmatic environment to improve the overall realization effect. First of all, maintaining transparency. ADS TXT is also a very important tool. It also provides important parameters so that advertisers can use these parameters to help them find the audience they want to target.

Because of the time limit, we can’t discuss various topics very deeply. In fact, I think I shared a lot today. The main content is how to monetize through the programmatic head bidding model, especially the one to monetize the sea, to increase income for my business. I hope everyone has gained some Knowledge. Thank you all!