Introducing Nexage Analytics

Victor Milligan | 09.13.12 | 9:11 am

Since about 2008, we have all had a crash course in macroeconomics. Although it has been a fairly grey economic performance, the silver lining is that we are all a little wiser—more analytically aware—about how to build efficient, liquid and vibrant markets. Gosh, I hope so.

The ability for analytics to have an impact on markets is true for most industries. It is especially true in trading-based markets where atomic-level visibility, pattern-based decisioning, and predictive analytics have a profound impact on market confidence, market liquidity, and business returns for the market participants. Analytics are critical to help customers get beyond “the what” and into “the why, what if and now what” insights that drive their business and the overall market forward.

Nexage Analytics

Nexage expanded its analytics program to enhance the services to our customers and our ability to run the best exchange in the market. The design of the program is to work at the atomic level—in this case, at the individual auction and impression level—to see, understand, model and take action on the micro- and macro-dynamics within our exchange.

Our program includes several key elements:

  1. Customer analytics for publishers and buyers to provide in-depth analytics (e.g., bid behavior analytics for their impressions) complemented by our real-time reporting.
  2. Exchange analytics to look at the behavior, patterns, and trends of our exchange to drive the greatest liquidity and enhance value to all market participants.
  3. Market analytics to identify trends that are shaping mobile advertising, such as the different growth curves for OS, growth of rich media and video ad units, CPM premiums associated with data-enriched (demographic, location, device ID, etc.) impressions, etc.

We are at the early stages of rolling out these efforts to our customers, but wanted to take a minute to provide a snapshot of how we are applying analytics in our business.

Auction Analytics: A Snapshot

We are analyzing over 500 million auctions a day, a significant sample, and running a set of statistical, pattern-based, and predictive analytics to understand micro-dynamics that shape the overall behavior and performance of our exchange.

One of those analytics is to identify the changing value of location-enabled impressions, as we see increased number and energy from location-oriented buyers on our exchange and as we introduced geo-code data enrichment capabilities in our exchange (more on that later). We developed a Location Cohort composed of publishers that provide location-enabled impressions (lat/long, zip, etc) and analyzed how bid price distribution was changing over time. We analyzed all bid prices for all auctions—not simply the settlement data—to get an atomic-level view of how buyers value location-enabled impressions over time. We saw clear increases in value (see graph below) in location overall, and at the specific attribute-level (lat/long, zip, DMA, etc.) that suggests that lat/long is in hyper-demand to support hyper-local campaigns.


The results did not surprise us, but they did provide the detailed, quantitative facts to drive several initiatives to enable our customers—sellers and buyers—to capitalize on growing local/hyper-local ad spend. With this analytic in place, we are able to analyze the impact of changes to continuously adapt to market dynamics.
Moving Forward
We will be rolling analytics out to our customers (stay tuned!). We are excited to bring powerful analytics to the market.  We strongly believe that analytics provide greater visibility and intelligence and will be a major accelerant to the pace and level of market maturity, market confidence and, ultimately, market growth.

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