Nowadays Real-Time-Bidding is one of the fastest growing trends in digital marketing. The average growth of RTB market amounts to 50-80% per year. It is much more effective than classic media buying, as far as due to the specific targeting the spreading loss decreases significantly and the conversion rate achieves more than 10%. For this reason the trend spreads with the light speed and already reached East European market.
In Russia RTB technology began its penetration 2011 and according to diverse research companies i.e. Accordant Media only in one year – 2012 Russia got into the Top 15 list of the most growing RTB markets. As stated by Andrey Chernishov, Director of Digital Communications in Aegis Media, until 2015 the whole RTB media spend in Russia will amount to 15%.
2011 the local advertisers had to rely on the expertise of the Western colleagues. But since the beginning of 2012 some digital magnates realized the high demand on Real-Time-Bidding technology and initiated the creation of the local Russian RTB ecosystem, as far as cooperation with Western partners led to the high financial effort. During this year the global RTB players announced an expansion into the Russian market, among them are Google, Facebook, Criteo and Crimtan; the local digital companies Yandex, AdFox, AdRiver, between and DataMind are working on their own products and platforms. Furthermore IAB Russia supported the organization of the RTB working group, which goal is to penetrate and to develop the RTB technology within the Russian digital business.
In order to understand what is the role of a single company in the whole RTB ecosystem, let us recap the general process of Real-Time-Bidding.
RTB Ecosystem. How it works
Real-Time-Bidding is a technology of selling and buying of an ad space based on bidding process.
The RTB auction takes place in a live modus, the whole process takes about 100 milliseconds. While the user is loading a website, the system is holding a tender for a specific ad space or better to say for showing of the ad to a specific targeted person . The particular advertiser, who offered the highest bid, wins and pays the second highest price, which was proposed during the auction. The RTB functionality is based on Open RTB protocol, which was developed by Interactive Advertising Bureau.
The participants of RTB market in Russia
DSP (Demand-Side-Platform) – a bidding technology for advertisers, a platform, which “communicates” with SSP/AdExchange servers. Using a DSP, advertisers can manage their bids for the banners and the pricing for the data. The first DSP technology appeared in Russia 2011. rutarget.ru, DoubleClick and soloway are some of the most important players on the Buy-Side.
Sell-Side Platform (SSP) – is a technology platform with its own interface, which makes it possible for publishers to manage their advertising inventory. SSP “communicates” with DSP in order to distribute its inventory with the highest price. Like DSP the first SSP platforms were introduced on the Russian market 2011, i.e. under the aegis of Yandex and begun.
ATD (Agency Trading Desk) – a centralized platform that uses data and technology to help advertisers more effectively purchase audiences at scale across digital media. It manages programmatic, bid-based media and audience buying.
Ad Exchange – is an ad stock, where the involved parties can buy and sell the rest traffic within the RTB ecosystem. Ad exchange serves as a connector between publishers and advertisers. The first Ad Exchange platforms appeared in Russia 2012.
Ad Networks – Independent publisher and ad networks. The companies which aggregate an ad space from the website owners and match it with advertisers’ demand. The publishers can use Ad Networks both for selling the rest traffic within RTB system or the whole advertising inventory respectively. Ad Networks is the most stable infrastructure element of the advertising market in Russia, the first networks were introduced 2000.
Data Management Platform (DMP or Data Partners) – is a multi functional platform for data management. DMP is in a direct cooperation with Data Suppliers, which makes it possible for advertisers to segment user’s data (first- and third-party) and to target according to their objectives. 2012 was the year of Data Management in Russia.
Finally both Trading desks and retargeting technology were introduced in the Russian market during 2011-2012. Which confirms the fact, that the Russian RTB market is very young and envisaging further development.
During the last two years the main players of the Russian RTB markets were identified. Below you can find an overview of the companies which are involved in the RTB process in Russia.
Oleg Nazarov-Bruni, the CEO of HubRus DSP is sure, that the Russian market will grow faster than the Western markets do, as far as the required technology is already available and the future success depends only on a good job of sales teams. According to the industry expert, in two years the Russian market will grow as fast as the American did in five years, and about 30% of media budgets will be spent on Real-Time-Bidding.