Press Releases

Omnicom Media Group First Holding Company In Germany To Adopt Rubicon Project’s Supply-side Bid Shading Solution

Mai 15, 2019

Rubicon Project’s Estimated Market Rate (EMR) bid shading solution increases cost-efficiency of programmatic campaigns in First-Price Auctions.

BERLIN, MAY 3, 2019: As part of its new sophisticated bidding strategy, Omnicom Media Group Germany (OMG Germany), the media services division of Omnicom Group Inc. (NYSE: OMC) has become the first holding company in Germany to adopt Estimated Market Rate (EMR), a free-of-charge bid shading tool created for buyers by Rubicon Project (NYSE: RUBI), the global exchange for advertising.

As one of the leaders in the implementation of effective and holistic programmatic bidding strategies, OMG Germany added EMR as part of their optimized bidding strategy during a testing period in November/December 2018. Performance results showed increased win rates at reduced CPM costs on transactions via Rubicon Project.

Alexander Kraft, Managing Partner, Omnicom Media Group Germany, commented: “We are monitoring the development of bid shading solutions very closely and EMR is a very interesting product. Our test results showed that EMR generated sustainable additional savings in addition to our own sophisticated bidding strategy.”

Sylwia Sajewska, Buyer Lead Northern Europe, Rubicon Project, commented:

“Selecting the right bid strategy is critical to the successful delivery of programmatic advertising campaigns. The development of header bidding and the consequent increasing shift from 2nd price auctions to 1st price auctions has created challenges for buyers that Omnicom Media Group Germany has overcome with EMR. EMR avoids inflationary TKPs while maintaining profit rates. Buyers can compete more effectively with 1st price auctions in combination with Rubicon Project’s EMR solution and publishers achieve higher sales than in a 2nd price auction process. This is an excellent result and brings us one step closer to the ideal fit of true asset value and transparency in programmatic trading. ”

The advent of header bidding in the programmatic advertising space saw the market move from a second price auction environment to a first price auction. The main driver behind this move was the call for greater transparency from SSPs, DSPs and exchanges when it came to fees and take rates. In January 2018, Rubicon Project launched first price auction for all header bidding inventory – with the aim of leading the industry towards a more transparent and simplified marketplace. As more exchanges followed, there was an imperative for buyers to adapt their bid strategies accordingly, so as to not be disadvantaged when competing in the new auction environment.

To support buyers, Rubicon Project introduced EMR, a free bid shading tool that helps buyers avoid overpaying for impressions in a first-price header bidding world. It uses machine learning to analyze factors like inventory type and CPM in order to come up with an adjustment to the buyer’s initial bid. The algorithm aims to maintain high win rates while avoiding spikes in CPMs, and it can work in addition to (or in lieu of) a buying platform’s existing algorithm.

EMR is a sustainable solution that prevents inflationary CPMs within first-price auction procedures, increasing the cost-effectiveness of programmatic advertising campaigns for buyers. This ensures Rubicon Project’s publisher customers long-term preservation and maximization of programmatic advertising revenue.

 

Contact

Omnicom Media Group Germany:

Ann-Sophie Altmeier: ann-sophie.altmeier@omnicommediagroup.com,

Kathrin Ossendorf: Kathrin.Ossendorf@omnicommediagroup.com

Rubicon Project:

Beatriz Vieira: beatriz.vieira@withpr.co.uk

About Omnicom Media Group

Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

About Rubicon Project

Founded in 2007, Rubicon Project’s mission is to keep the Internet free and open and fuel its growth by making it easy and safe to buy and sell advertising.  Rubicon Project pioneered advertising automation technology to enable the world’s leading brands, content creators and application developers to trade and protect trillions of advertising requests each month and to improve the advertising experiences of consumers. Rubicon Project is a publicly traded company (NYSE: RUBI) headquartered in Los Angeles, California.


Tags: , , , ,