Rubicon Project’s Estimated Market Rate (EMR) Yields 20 Percent Savings for DSPs Vs. Pure First-price
September 06 2018 - 6:00AM
Rubicon Project (NYSE: RUBI), the Global Exchange for Advertising,
today announced that in the first half of 2018, its Estimated
Market Rate (EMR) feature yielded an average of 20 percent savings
for buying platforms over pure first-price auctions, with less than
a 1 percent trade-off in win rates. Improved performance has
driven swift adoption of the feature, which is now used by 50
percent of DSPs on the company’s platform. Rubicon Project also
noted that EMR benefits sellers by helping buyers to spend more
efficiently and sustainably over time. Since EMR launched in
January 2018, the company has distributed more payments to sellers
than any first half in its history.
Rubicon Project developed EMR’s algorithm to help buying
platforms achieve better outcomes in a marketplace where competing
in a second, downstream auction has become the norm. The feature
works by using machine learning to analyze factors such as
inventory type, target audience and CPM, and then finding
opportunities to decrease buyers’ initial bids without sacrificing
their competitiveness downstream.
“As an exchange, we have a broader view of the marketplace than
many of the largest buying platforms,” said Adam Soroca, Head of
Global Buyer Team for Rubicon Project. “The power of EMR is that it
harnesses this vast dataset of auction outcomes and applies it --
in real time -- to help buyers achieve fair market rates.
Ultimately, this means better outcomes for buyers, and more stable,
predictable demand for sellers.”
Though Rubicon Project developed EMR for DSPs that hadn’t yet
tuned their bidding logic for first-price auctions, the company
noted that platforms of all kinds now use the feature alongside
their state-of-the-art, first-price-enabled algorithms. Because the
feature is optional and it uses the DSPs’ initial bids as a
starting point, buying platforms retain a high degree of
control.
“Rubicon Project’s innovative EMR feature proves their
commitment to helping us achieve the best possible performance for
our clients,” said Lewis Rothkopf, General Manager of Media and
Growth Channels at MediaMath. “The technology has yielded us added
buying efficiency versus pure first-price while still delivering
our campaigns in full. This equates to millions in value for our
clients, and it’s why our systems will look to optimize towards
those supply paths that protect against overpayment in a
first-price environment.”
About Rubicon ProjectFounded in 2007, Rubicon
Project is one of the world’s largest advertising exchanges. The
company helps websites and apps thrive by giving them tools and
expertise to sell ads easily and safely. In addition, the world’s
leading agencies and brands rely on Rubicon Project’s technology to
execute billions of advertising transactions each month. Rubicon
Project is an independent, publicly traded company (NYSE: RUBI)
headquartered in Los Angeles, California.
Media Contact For Rubicon Project Ben
Billingsleypress@rubiconproject.com917-826-1103
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