Leading Publishers into 2012: the Performer

Frank Addante January 4th, 2012
By Frank Addante
Founder, CEO,

This week Forrester Research, Inc. named the Rubicon Project a leader in the field of sell-side ad technology platforms in their January 2011 report, The Forrester Wave™: Sell-Side Platforms, Q1 2012, giving us, among other accolades, a 5.0 in Implementation & Performance and 5.0 in Malware & Ad Quality Protection. The highest score possible in both categories was 5.0.

For Malware & Ad Quality Protection, we’re particularly proud of this high score, given our industry-unique technology, Helix. Through the REVV platform, Helix scans publisher sites 24/7 for unwanted ads to defend against channel conflict and control ad quality.

Of course we care about revenue performance more than anything else; it’s the bread and butter of our comScore 500 publishers’ businesses, and it’s the cornerstone of ours. The recognition from Forrester is great, but it’s the large percentage of comScore top publishers who rely on us to consistently outperform their revenue goals that really get us fired up and drives innovation.

The report noted a particular key to our success in revenue performance on behalf of publishers, our “innovation around bringing new demand sources to publishers.” Our innovation on this front has always been a priority, and you can expect to hear more exciting updates on this front in the early part of this year.

Other areas that we were rated on in the report include: Publisher Protection and User Interface & Reporting.  Since we know all of these areas are equally important to publishers in driving their online ad revenue, while protecting their brand – our team continues to focus on innovation across the entire REVV platform. Highlighting these efforts, Forrester notes that we are “aggressively ramping up… development efforts and turning once-distinguishing platform features into table stakes.”

We are honored to be named a leader in Forrester’s Wave focused on Sell-Side Platforms. As this report clearly demonstrates, the market is fragmented with vendors offering a variety of products and services intending to help publishers best meet their business needs. As the only independent, transparent Real Time Trading platform, the Rubicon Project will continue to focus innovating on behalf of the publisher. In 2011, REVV drove maximum revenue on over 2 trillion ads for top publishers, including 30% of the comScore 100; classified over 60,000 ad creatives to identify their buyer, industry, agency and more; and served real time-traded ads traded to more than 627 million Internet users around the globe. We expect to see significant continued growth this year and look forward to working with the comScore 500 publishers in building and executing a monetization strategy that breaks new records in 2012.


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The Age Of Automation

Josh Wexler November 15th, 2011
By Josh Wexler
SVP, Global Market Development

At the Digiday Digital Publishing Summit in October, I had a chance to speak to a who’s who of publishers about some of the massive inefficiencies in the online display market, as well as the massive opportunity for publishers who embrace what we’re calling The Age of Automation.

During my presentation at the conference (if you missed it, you can watch it below), I outline the unique view the Rubicon Project has of the media buying ecosystem.  When I joined Rubicon 3 and half years ago, we were integrated with 200 ad networks and a few exchanges.  Today, that number is over 650 and includes rep firms, ad networks, demand side platforms, agency trading desks, and multiple exchanges.

In addition to defragmenting the media buying from these companies to drive publisher yield, the Rubicon Project’s REVV Platform offers a number of technology solutions for helping publishers maximize revenue, safely – including protecting publishers from channel conflict. Our proprietary Helix and AdCheq technology classifies every advertiser and every creative on our platform, protecting publishers from competitive advertisers and the types of ads they do not wish to see on their sites. To date, our platform has classified over 56,000 advertisers buying through third parties with over 6,000 of those advertisers now buying via real time bidding.

These technologies also give Rubicon a unique view of the inefficient way media is bought today.  For example, Visa – or really, Visa’s media buying agency – is using over 40 third party demand sources who have trafficked over 2,400 creatives.  Ironically Google’s Display Network is the biggest ad network in the world, and Google also happen to own DSP Invite Media, yet they buy media from over 50 third parties, including multiple DSPs. In addition, Google’s agency has trafficked over over 3,500 creatives – as classified by REVV – through all of these third parties. Ad Operations experts estimate it takes 30 minutes to traffic a creative, so if you do the math, Google’s creatives take 105,000 minutes to traffic.

This clearly illustrates the massive amount of inefficiency that remains in the market. And, like everything in the online advertising market, massive inefficiency is a portal into massive opportunity.

We are at the dawn of the Age of Automation in online advertising. Although still in its infancy, the Age of Automation has already started to deliver more efficiency, increased advertiser performance, and better CPMs and controls for publishers.  Real Time Bidding is real, delivering 3-5x the average CPMs for publishers, better campaign results for advertisers, and is by far the fastest growing segment of the market. The Age of Automation is a good thing.  There is no need to fear it.  It is bringing unprecedented visibility, controls, and insights for both buyers and sellers.

The Age of Automation has huge potential revenue implications.  As digital media superstar Darren Herman pointed out on his blog and Business Insider (http://bit.ly/rKmCc5), the top 5 publishers in the world control 64% of all online spending.  In display advertising, the IAB reported that the Top 10 Publishers collected 72% of the total revenue in 2010, a stat that has remained consistent over the last 10 years.  It should come as no surprise that Google, Microsoft, AOL, and Yahoo are all placing huge bets on how to protect their disproportionate share of online spending.  One of the biggest drivers behind the huge disparity between the Top 10 Publishers and the rest of the Top 500 is that the Top 10 are easy to buy.  In the Age Of Automation, though, it will be just as easy to buy the Top 500, and we believe this will foster a huge shift in dollars benefitting the ecosystem – but maybe not benefiting the Top 5.


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From AI Coder blog: Open RTB panel at the IAB Ad Ops Summit 2011

Neal Richter November 14th, 2011
By Neal Richter
VP, Chief Scientist, Technology

Cross-posted from the AICoder blog, written by Neal Richter, the Rubicon Project’s vice president and Chief Scientist.

Monday November 7th I was on an IAB Ops panel on OpenRTB.

The clip shows an exchange that followed a question from Steve Sullivan of the IAB about how webpage inventory is described in RTB. I described an example of differentiating a simple commodity, barley.

Two of the major uses of barley in the US are animal feed and malting for making beer. Malting barley has specific requirements in terms of moisture content, protein percentage and other factors. Farmers don’t always know what quality their crop will finish at. They count on having two general markets, if the tested quality meets malting standards then the premium over feed prices can be healthy. A 2011 report noted that malting barley provided a 70% premium over feedstock barley. Growing specific varieties and/or using organic farming methods can provide additional premiums over generic feed barley. The curious can follow the links below.

How does this relate to publishers and advertising and OpenRTB? In my opinion we need several things standardized:

  1. Inventory registration and description API. Allows publishers influence on how their inventory is exposed in various demand-side and trading-desk platforms. Publishers should fully describe their inventory in a common format. Buy-side GUIs and algorithms will benefit from increased annotation and categorization. This can also harmonize the brand-safety ratings that are not connected between the sell and buy sides.
  2. Standardization of the emerging ‘Private Marketplace’ models in RTB. A set of best practices and trading procedures for PM needs to be defined such that the market can grow properly.
While the main bid request/response API of OpenRTB has been criticized as being ‘too late’ given the large implementations in production, it is not too late to define standards for the above. These things will help the buy-side better differentiate quality inventory.

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Key to Success: the Publisher ADvisory Council

Jeremy Fain VP Client Services November 10th, 2011
By Jeremy Fain VP Client Services
,

ad:tech and the dozens of ancillary events surrounding it always sets New York abuzz. Publishers, advertisers, agencies and the technology companies who love them gather to meet, discuss, opine and plan. Our team loves the opportunity to connect with so many customers, partners and colleagues.

Two events stood out this week. First, the IAB Ad Ops Summit was an incredible event where senior ops, sales, and buying leaders from around the industry came together to discuss the issues of today and tomorrow. We were honored to participate (and particularly enjoyed our own Dr. Neal Richter’s barley/brewery metaphor during the OpenRTB panel at that event).

The gathering we most value, however, is the Rubicon Project Publisher ADvisory Council. This customer group launched last fall, a summit of leaders at the top tier of the digital publishing pyramid, to share insights, feedback and concerns. It’s a critical part of our roadmap development process, as this input ensures that REVV is meeting both today’s and the forthcoming needs of publishers.

This ADvisory was populated by sales and ad operations leaders from Time Inc., ABC, Trulia, Slacker/AOL Radio, Mindspark, Mevio, Intermarkets, Forbes and A&E Digital. A balance of industry-trend level conversation and technical discussion, the group was highly engaged and pushed us with great questions.

Some quick insights from the session:

  • Publishers want standards, too: standards put in place that can be applied to everyone for mutual benefit of the digital ad ecosystem
  • Education is key – clients appreciate Rubicon making them experts – the space is evolving so quickly and they rely on us to keep them up to date and ahead of the curve
  • Resource constraints limit publishers’ ability to maximize the power of REVV technology solutions they rely on – and these constraints constraints make our client services team even more valuable  to premium publishers

The insights we cull from our clients at ADvisory will drive our roadmap as well as our behavior. Our involvement with industry organizations like IAB, OPA, AOP and the NAI puts us in a good position to not only develop our own products and services that uniquely meet the needs of the world’s top publishers, but also drive change throughout the industry. We’re a key partner for our publisher customers, and we’re 100% committed to being a very good one. We appreciate the great partnership they’ve shown us in return through their insights and transparency at the November 2011 ADvisory.


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The Real Problem with Getting More Spend Online

Mark McEachran October 20th, 2011
By Mark McEachran
Manager, Product Development

Two weeks ago I participated in a couple of events during AdWeek in New York.  The first was Rubicon’s own #letsfixit event where agency advertising representatives joined a panel with publishers and the rest of the demand train to discuss the difficulties of running ads online.  The attention shifted from learning about the process to learning about where the process fails.

Bernhard Glock of Medialink, who was not on the panel, chimed in with a profound thought.  Buying on television is buying something that’s familiar, with seemingly known or at least comfortable impact and expectations on results.  By contrast, buying online display is a complete mystery.  His solution, just buy on television because that’s what he understands.

In addition to all the great insight each panelist shared, this sticks out as an important point of the event.  If there’s something to be learned by this it’s that the Kawaja diagrams are illustrating the point – online is confusing to the buyers, and that’s bad.

The second event I attended during Adverting Week was the OpenRTB TownHall discussion.  I was lucky enough to participate as a panelist so I had ample opportunity to grab the mic and dig in when I found things getting interesting.  Alex Horowitz and Stephen Tompkins were in attendance as the lone representatives of agency buyers – Vivaki.  The old, beaten, dead horse rose up from the grave with the phrase that ‘buying online is less efficient than print and television’.  I decided to beat that horse a little bit more and asked the agency guys if that’s really keeping dollars from moving online.  The answer: No.

Efficiencies, or lack thereof, are not the things keeping big agency dollars offline; it’s lack of inventory.  More specifically, it’s lack of premium inventory keeping the money at bay.  Or is it?

At the end of Ad Week Rubicon hosted a #letsfixit cocktail party to show appreciation for everyone’s thoughtful insights and general efforts in the online space.  As I mingled I kept my topic top of mind with a few insightful folks.  Todd Sawicki, from the Cheezburger Network, engaged me in a friendly argument over why the brand dollars aren’t moving online from TV.  He had some good insights in the form of a story: When a brand advertiser, a fast food restaurant for example,  puts up an ad on TV at 7pm he can track that to increased sales in that region at 11pm.  He can predict how much he’ll profit to within 1%.  Some of these guys have little dashboard widgets or something that shows them the money.  And there’s no equivalent online.  There’s no prediction that’s accurate enough, no cause and effect that can be tracked as simply as “I spend X, I get Y, repeat”.

Repeat – that might be the key.  Innovation in online advertising does not give you repeatable results for very long.  There’s always something jumping up that changes the game and the traffic doesn’t hit the same sites with certainty.  What happened last year may not happen exactly the same this year.  This leaves brand advertisers and their agency representatives in a difficult position when putting together an online ad budget and showing the projected results.

So what’s the take-away here?  We’ve got 100s of little companies trying to solve efficiency problems for buying and selling online display, video and mobile.  And those are fine companies, but a lot of them can’t get their hands around the big problems.  Coming out of Ad Week it seems that we like to discuss those problems and argue about them in meaningful ways.  And it feels like the conversation is getting elevated, at long last, to the point where we’re beginning to understand the entire ecosystem’s roadblocks to expansion.  Randall Rothenberg says we’ve only got 18 months to get this thing right, so let’s keep that conversation going.  #letsfixit


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From Good to Great: project #letsfixit

Kara Weber October 3rd, 2011
By Kara Weber
SVP, Marketing

Cadreon, Forbes, Forrester Research, Medialink, Seamless, Triad Retail And Vivaki “Join The Project”

Today marks the kickoff of the most exciting Advertising Week New York has ever hosted, and almost all the terrific news comes from the digital advertising sector. We’re thrilled to be contributing to the good news: last week the Rubicon Project, in conjunction with Econsultancy, released research highlighting that advertisers in both the US (68%) and Europe (57%) said they had increased their investment in online display advertising in the last year. It’s not just us – spend is up, advertisers are happy, parties are rollicking, and interest and awareness of the value of digital content and the advertising that supports it has never been higher.

This is great stuff, and we’re lucky to be at the heart of it. But what if this is all just the tip of the iceberg?

On Wednesday, October 5, the heart of Advertising Week (aka #AW8), the Rubicon Project is hosting #letsfixit: Simplifying the Buying and Selling of Digital Advertising. #letsfixit isn’t just another run-of the mill Ad Week panel. What’s different?

THE LINE-UP

An amazing line-up of thought leaders will engage the audience in a provocative and lively open discussion aimed at helping publishers, advertisers and consumers realize the true value of digital experiences.

Opening Remarks: Frank Addante – CEO and Founder, the Rubicon Project

Moderator: Xavier Kochhar – Managing Partner, Media Link

Discussion Leaders:

  • Teri Gallo – VP, Marketplace Development, Cadreon
  • Matt Barash – VP & Advertising Director, Forbes Media
  • Michael Greene – Analyst, Forrester Research
  • Sara Livingston – Manager Digital Marketing, Seamless
  • Brian Quinn – CRO, Triad Retail Media
  • J.R. Randall – Director, Partnerships, Vivaki

THE ATTENDEES

Leaders from companies across the online advertising spectrum, including top publishers (like NBC, Weather.com, WebMD, Trulia, CareerBuilder…), agencies (like Vivaki, Cadreon), DSPs (like Turn, MediaMath, Appnexus), ad networks (like Ad.com, Undertone, Criteo), data companies (like TargusInfo, Exelate, BlueKai), buyers (like Amazon, Seamless) and ecosystem influencers (there’s no one like Luma Partners, AdExchanger or Comscient), who will discuss what’s required to move the industry from good to great. Even the guy who said SSP’s are dead will be there.

THE EXPERIENCE

This isn’t an event for the shy or retiring. Our first #letsfixit event in June was called “the best content of Internet Week.” There were arguments, bawdy remarks, provocative declarations and ultimately actionable ideas. Everyone participates in the conversation at #letsfixit, as all leaders in the industry will need to participate in taking digital advertising into the next era.

Interested in an invite? The event is fully reserved, but a waitlist is forming. Request your invite. Can’t make it but want to pitch in with questions, ideas and immodest proposals? Join the conversation on Twitter. And watch this space for more on how we move from the good times of this exciting Ad Week toward a $200 billion industry that delivers relevance to consumers, performance to advertisers and (nearest and dearest to the Rubicon Project), yield to publishers.


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Aggressive Malware Attack Threatened 150 Publishers.

John Clyman September 8th, 2011
By John Clyman
Director of Engineering, Brand Protection & Security,

Last week, in the early-morning hours, the Rubicon Project’s brand protection technology flagged an anomaly among a handful of the tens of thousands of ad tags we manage. After blocking those suspect tags to make sure they wouldn’t be permitted to serve on any sites, our analysis showed that they contained unusual code and would, under the right conditions, attempt to download Windows executable files — that is, not just images or animations or videos, but actual software programs.

Why would a display ad try to download a software program? Because it was being used as a vehicle for malicious advertising, or “malvertising,” which distributes dangerous software known as malware via an otherwise standard looking ad banner. But before the malicious ads could achieve their goal, REVV’s SiteScout malware protection technology prevented this malvertising attack from serving hundreds of thousands of impressions across more than 150 Websites while we got to the root of the issue.

How did we keep 150 publishers safe from a single, extremely prolific malware threat? SiteScout performs dynamic, behavioral scans of creative as they appear “in the wild” (on real websites, in real time). That means SiteScout actually renders ads in a browser, lets JavaScript and Flash execute, and generally behaves as a Website visitor would, in order to be exposed to the same threats as users would. This is proprietary technology that the Brand Protection & Security team at Rubicon manages and continually refines; we’re not relying on third-party security software, which may not be able to protect against the most dangerous kinds of threats, the so-called “zero-day” exploits that aren’t yet known to the anti-malware community.

Back to the story at hand: over the following days, SiteScout kept the affected ad tags — and indeed all ad tags from the affected ad network — in a quarantined state and continued its monitoring as more than three dozen of the tags began showing signs of infection. Some malvertising makes its presence obvious by popping up scary announcements proclaiming “Your computer is infected!” and demanding money for bogus “security” software. But this malware was invisible. Still, in our controlled malware-analysis environments, we could see it quietly worming its way onto machines. An ad would reach out to a server on a domain in India, download software that would superficially masquerade as an update to an Adobe product, and entrench itself on a target system.

So why do malware authors do this nasty stuff? Because if they can sneak a bit of unwanted code onto a computer, they can turn that computer into a virtual cash machine. In effect, the malware authors plant moles in PCs around the world. Their code can then do their bidding, whatever that may be on a given day, and users might never even be aware it’s there. Maybe the malware authors intend enlist the computers in a botnet that they can rent out to send spam or attack Web sites and extort ransom money to stop. Maybe their mothers didn’t give them enough positive reinforcement. Who knows — the possibilities are endless.

Here’s where it gets really scary. Neither the ad network nor the advertiser itself was acting maliciously. Instead, the ad network’s own servers had been hacked; the advertiser had no idea their otherwise high-quality ad creative had been hijacked. The malware authors managed to insert their unwanted code into ad tags, doubtless expecting that those tags would then serve on a wide swath of high-traffic Web sites. Except that SiteScout disabled the tags to prevent them from appearing on sites that rely on the REVV for publishers platform. Evildoers, foiled again.

How does an ad ops staff proactively monitor tens of thousands of tags running worldwide on a 24-by-7 basis for signs of invisible malware infections? They can’t. But with REVV, the first line of defense comes not from people but from our industrial-scale automated brand protection technology. It wasn’t people but technology that found those attacks in the middle of the night, because REVV has hundreds of machines continuously assessing tens of thousands of ad tags. Our platform performs upward of a million scans daily from dozens of geographic locations, and our technology carefully sifts the resulting data to identify any anomalous behavior — which in this case we observed from six locations in three countries (via our proxy system, which monitors traffic around the globe). When the automated system finds a suspect tag, it immediately shuts it off and shifts traffic to other tags, making sure that publishers continue to generate maximum revenue while remaining protected from threats. And when an incident occurs, REVV continues to monitor those disabled tags and our team works with affected ad networks to ensure that the problem gets corrected.

Although this incident was about malvertising, malicious ads are just one of the ad quality issues that our brand protection systems watch for on a continuous, automated basis. The systems also detect undesired behaviors like auto-play audio and unauthorized pop-ups — far more common than actual malvertising outbreaks, but still something that many publishers understandably object to and have set controls to prevent. And our creative harvesting systems, helix & VANTAGE, feed our crowd-sourced ad-classification engine, AdCheq, which identifies issues like potential channel conflicts and ad-quality guideline violations. We’re continually improving all these capabilities so REVV delivers a comprehensive, multi-layered approach to protecting publishers’ reputations, direct sales channels and the user experiences on their sites. I welcome feedback on what we can do to make them even better.


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#letsfixit in New York, June 7th

Kara Weber June 1st, 2011
By Kara Weber
SVP, Marketing

We’re bustling with excitement here this week in preparation for Internet Week next week in New York. We’ve been participating in, sponsoring and hosting events at this industry tent pole event for the last three years, and each year we find it one of the most valuable sources of input, ideas and feedback for our business, first and foremost because of the opportunity it gives us to interact with premium publishers.

To deliver the most value to premium publishers, though, we need to think holistically about the display ad business, both today and into the future. If we only think about the value of the business now, we’re missing the opportunity to grow the industry overall.

It’s with this in mind that we’ve organized #letsfixit, an event focused on shifting – and growing – opportunity throughout the value chain of digital advertising. Our CEO and founder, Frank Addante, began the #letsfixit discussion earlier this year with an open call to the industry, asking everyone to join the Project: the @rubiconproject’s effort to help realize the true value of digital experiences.

We’ve invited leaders from across the industry – spanning publishers, advertisers, agencies, DSPs, ad networks and ultimately, consumers – to join us on Tuesday afternoon, June 7th, at Soho House in New York for this inaugural #letsfixit conference, where special guest moderators will lead open discussions around the topic of future digital experiences and how those experiences will be measured.

The event is open by invitation only to leaders who run ad operations, digital sales and revenue; request your invitation today.


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Updated: Women in Ad Technology Dossier

Rachel Richards May 25th, 2011
By Rachel Richards
Director, Account Management

This past January we launched the first version of our Women in Ad Tech Speaking Dossier – a great go to resource for event planners, speaking proposal judges and panel committee members alike. The overall goal of the dossier was to offset  “why are there no women speaking at events in our industry” chatter and encourage all the intelligent ad tech women to participate in industry events.

We are pleased to bring you the second version (or what we like to call the “summer release”) of the dossier, featuring  women from the first version with additions such as: Shaherose Charania, Co Founder & CEO at Founder Labs and Women 2.0, Alanna Clark, Director of Platform and Analytics at Admeld, Susan Coelius Keplinger, COO at Triggit, Frances Maier, President & Executive Chair at TRUSTe and Amielle Lake, CEO at Tagga Media.

Please follow this link for a free download: http://www.slideshare.net/RubiconProject/women-in-ad-technology-dossier-may-2011

We are sure there are many more amazing women not featured in this dossier. Email Rachel@rubiconproject[dot]com with additions you’d like to see made in the next version – which is due to hit stands mid August.

Here’s to an eventful summer!


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Happy Belated 4th Birthday, Rubicon!

Devan Fearman May 5th, 2011
By Devan Fearman
Director, Marketing

Things have been moving so quickly around here lately, that we forgot to stop and celebrate an important
milestone – the Rubicon Project’s 4th birthday!

On May 1, 2007 the Rubicon Project launched with one lofty goal in mind – to automate the buying and selling across the $65 billion global online advertising industry. Beginning with a 2,000 square foot office, one bathroom and about 10 employees…I think it’s safe to say that our team has come a long way!

Here we are celebrating our fourth birthday in a time when the industry continues to push the limits on innovation and display advertising is expected to reach $30 billion in 2012 (eMarketer). Along with our partners and customers, we’re on our way to accomplishing the mission we set out to conquer. We couldn’t be more excited about the opportunity that lies ahead for the advertising ecosystem.

Of course, we’d like to take a moment to thank our 450+ premium publisher customers for their continued support. The product developments we’ve made over the years would not have been possible without your insight, feedback and trust in our team. It’s because of you that the REVV platform has reached 80+ billion ad transactions per month and 500+ billion real-time bids per quarter.

And last but certainly not least, thank you to all 250 Rubicon team members, across 8 offices in 5 countries. It’s your hard work, devotion and significant contributions that make Rubicon the leading advertising technology company.

Happy Birthday to our team and thank you to our customers for believing in us! Here’s to many more….


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