What makes online advertising automated?

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What Makes Online Advertising AutomatedAD SERVER , AD NETWORK , DSP , SSP , AD EXCHANGE , RTB , TRADING DESK

By www.knowonlineadvertising.com

2AD SERVER

Overview:

Ad Server is the equipment that serves ads to the customers.

It’s a computer server which acts as a repository of advertisements. Large no. of ads are uploaded on this server which are delivered to the websites.

Ads are delivered to the websites depending on the interest of the visitor.

Content on the server is constantly updated so that each time a website is visited by user , a new ad should appear.


3AD SERVER (Continued…)


Ad Serving:

Serving ads to the potential customers is the main role of Ad Server. There are various factors which are determined while serving an ad.

Ad Targeting: Ads are targeted to specific users by narrowing the population on the basis of certain traits like demographic location , age etc.

Behavioral Targeting: Serving ads to the users based on their interest. Ads matching the content that users frequently visits are served.

Ad Metrics: Ad Metrics shows the performance of particular ad , like how many times user clicked on it.

Frequency Capping: No. of times the same ad is shown to same user. Frequency capping ensures that an ad is not shown to same user more than once during a session.


Types of Ad Server:

Remote Server-> These are owned by third party , serves ads across domains owned by multiple publishers. Ads are delivered from one central source which enables advertisers and publishers to track the distribution of their online advertisements.

Local Server-> Owned by single publisher , serves ads to that publisher’s domain. Helps publishers in keeping the track of ads served.



Working of Ad Server:

Suppose, user visits a website cricinfo.com which has three ad slots to display ads.

Browsers navigates the website , loads the content from content server and similarly reaches to ad server to fetch ads to be displayed on ad slots.

Ad Server performs some matching process before sending ads to the website.

These matching process includes Frequency Capping , Running Optimization algos , Parameters like geography , browser type etc.

Once these matching process is done , Ad Server responds with most appropriate ad to be served on website.


6AD NETWORK

Ad Network is a collection of publisher’s websites and ad inventory which advertisers can reach and use for promoting their business.

It is a company that connects advertisers to websites which are looking to host advertisements.

It enables the advertisers to expand their reach as they get access to more no. of publishers through single platform.


7AD NETWORK (Continued..)

Benefit of Ad Network:

Provides a single platform for advertisers where they get access to large ad inventory and they can buy as per their requirement.

Enables advertisers to select the best available ad inventory and assures them that their ads are shown on the best possible websites which would benefit the advertiser’s business



Types of Ad Network:

Vertical Ad Network:

1. Delivers advertising on specific audience.

2. Low global reach but high reach on specific target.

3. Provides exact reach for advertisers.

4. Considered as “Known-By” as targeted audience is known.

5. It’s a collection of websites with similar content and used to target specific audience.

6. Examples are travel , automotive.



Horizontal Ad Network:

1. Delivers advertising on wide base of inventory available.

2. Collection of thousands of websites with different content.

3. Offers scale , reach and numerous targeting capabilities for advertisers.

4. No. of impressions delivered per day is huge as the targeted audience is large.

5. Ad buying is done by Run of Network and is often a blind buy.


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DSP – Demand Side Platform

DSP is a software which enables advertisers to purchase ad inventory in automated fashion.

Advertisers and agencies get access to multiple sources of inventory and with the use of Real time bidding they can buy them as per their requirement.

DSP has made the advertising process cheaper , transparent and automated.

Impressions are bought across multiple websites but targeted to specific user based on information like their location and browsing history.

DSP interact with the Ad Exchange where all the ad inventory is available and selects the one which best suites the requirement.

The price of each impression is decided through real time bidding which is a kind of auction.


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SSP- Supply Side Platform

SSP aims at focusing on the publishers.

SSP enables publishers to connect their ad inventory to multiple ad exchanges , DSP and network.

SSP is publisher’s equivalent of DSP.

DSP helps advertisers get more ad inventory at cheap price , SSP enables publishers to sell their inventory at maximum prices.

Publishers make their ad inventory available to ad exchange to be sold which allows huge range of potential buyers bid for that inventory.

Real time auctions for the impressions benefits the publishers in getting maximum possible price for their inventory.


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Ad Exchange

Performs the role of mediator between DSP and SSP.

Ad Exchange is a repository/pool of ad impressions.

It’s a digital marketplace that enables advertisers and publishers to buy and sell ad inventory through real time auction.

Ad Exchange plays the most vital role in making this process automated.


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Ad Exchange (Continued..)

Working:

Scenario - Publishers want to sell their ad inventory and Advertisers want to purchase it.

Publishers connect their ad inventory to ad exchange through SSP.

Advertisers uses DSP to interact with the Ad exchange to get access to available inventory.

DSP selects the best possible inventory on the basis of advertisers requirement.

Price for each impressions is decided by auction which is real time bidding.


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RTB – Real time Bidding

RTB is an automated process which enables advertisers and publishers to buy , sell ad inventory in real time.

Unlike traditional advertising , which involved brokers for buying and selling process . RTB has made the process transparent and streamlined.

Advertisers bid for impressions they want to buy, the best bid wins the auction and gets the ad inventory.

Bid is placed for each impressions and varies as per the impact and importance of impression.


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RTB – Real time Bidding (Continued..)

Advantages of RTB:

Bidding is done for each impression. So , impressions with less importance for the campaign can be bought for lower price.

Advertisers can bid for only those impressions which they require. They can choose as per their requirement.

From publisher’s perspective, the ad inventory which is more in demand , the bidding price goes and publisher can gain more profit.

Advertisers get access to more ad inventory and similarly publishers get wide range of buyers.


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RTB – Real time Bidding (Continued..)

Working:

SSP (Publisher side)throws the ad inventory into the ad exchange and waits for it to be auctioned.

DSP (Advertiser side) determines which ad inventory to buy as per their requirement and some other factors like users demographic location and browsing history.

Advertisers bids for the ad inventory and returns the publisher with the bid value.

SSP (Publisher) determines the bid value received from multiple DSPs and then grants the ad inventory to the one who bids the highest.

Ad space is immediately transferred to DSP and ad is served.


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Trading Desk

A centralized management platform which helps advertisers in audience buying.

It is layered on top of DSP and other audience buying technologies.

It is a platform that uses data and technology to help advertisers purchase ad inventory and audience more effectively and in real time.

With the advent of new technologies and targeting tools , the process of buying audience became more transparent and automated.


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Trading Desk (Continued..)

Benefits of Trading Desk:

Improved Targeting:

Trading desk targets audience on one to one basis by matching certain criteria. They prepare the list of criteria that defines audience behavior and then with the use of DSP it matches inventory and audience attribute which optimizes campaign performance.

Improves Campaign Performance:

Trading desk performs detailed data analysis which helps in knowing how the campaign is performing and what are the shortcomings.


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What makes online advertising automated?

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