Thursday 25 June 2015

Programmatic Advertising 101: 5

Key players of Programmatic Ad Buying: SSPs

SSP, or in other words a Supply Side Platform.

A software platform that enables smart monetisation of publishers’ inventory by plugging into an exchange or communicate directly with DSPs (Demand Side Platform).

An SSP enables publishers to automate and optimise selling inventory at scale meanwhile aiming to maximise yield.

The transaction can take occur via Real Time Bidding (RTB) or via pre negotiated Private Marketplace deals (PMP).

Friday 19 June 2015

Programmatic Advertising 101: 4

Key players of Programmatic Ad Buying: Advertising Exchange

An online advertising exchange is a technology platform that connects digital media buyers and sellers to facilitate the commercial transaction between the parties.

The purchase price, determined in CPM (Cost Per Thousand (mega)), can be auction based or pre-negotiated and can vary depending on for example:
- the website (premium sites will command a higher CPM rate)
- the ad format (video is more expensive than standard banner display)
- overall market competition (supply vs demand), which can impact volume of impressions won by an advertiser on real time auction
- targeting (the more targeting applied, the narrower the pool of inventory that matches the requirements, which can also push the price up)

Major Ad Exchanges with global reach include AdX (by Google), PubMatic, The Rubicon Project, Open X, and AppNexus, just to name a few. The way they make money is through a commission on each of the transaction that they facilitate.

Wednesday 17 June 2015

Programmatic Advertising 101: 3

Key players of Programmatic Ad Buying: DSPs

DSP, or in other words, a Demand Side Platform.

Enables advertisers to buy various formats of digital media from a large number of publishers via exchanges, in an automated fashion in real time, using one software interface.

So with one login, advertisers can:
- access websites globally
- set pricing goals (CPM, CPC, CPA)
- purchase media via auction or pre-negotiated deals (private deals)
- set targeting parameters (eg. geo location, vertical, time, position on website, mobile carrier)
- buy various formats such as online display, mobile, video, mobile-video, digital out of home, and increasingly other ‘traditional’ media such as radio, and television
- see campaign performance in real time, and based on performance
- utilise machine learning (by system algorithms) to optimise or
- manually optimise campaigns in real time
- make changes to the creative used in real time (eg. add/remove, pause, swap)
- set CTR% (Click Through Rate) targets for creatives and automatically eliminate low performing sites
- change or re-allocate budget
- record website visitor cookies and re-message them
- set minimum viewability requirements
…just to name a few. With the technological advances this is a growing list depending on the parameters that are passed by the Exchanges and interpreted by the DSPs.

So to recap, a DSP is a piece of software that gives advertisers the control to buy targeted online media in an automated fashion in real time.

Monday 15 June 2015

Programmatic Advertising 101: 2

The Programmatic Ecosystem

Who are the key players in programmatic ad market?

In its simplest form:
1) there are those who want to buy online advertising (Demand Side Platform, DSP),
2) those who want to sell (Supply Side Platform, SSP), and
3) those who facilitate the transaction (Ad Exchange)



Of course, in reality, there is more to it. Including key inventory providers (on the supply side), and buyers (on the demand side) and all other ancillary services, for online display media, the most recent market map (2015) looks something like this:


source: http://www.lumapartners.com/lumascapes/display-ad-tech-lumascape/