Efficiency. Programmatic advertising technology promises to make the ad buying system more efficient, and therefore cheaper, by removing human error from the process wherever possible. Automating the process means that it can be done in real time and doesn’t rely on the human touch, manual insertions and manual trading. Earlier, we used to buy digital ads from sales people, which was expensive, time consuming and error-prone. Programmatic Advertising allows marketers and sellers to devote more of their time in planning, strategizing and the optimization of advertising campaigns
A supply-side platform or seller-side platform (SSP) is a technology platform to enable web publishers to manage their advertising space inventory, fill it with ads, and receive revenue. Many of the larger web publishers of the world use a supply-side platform to automate and optimize the selling of their online media space. They will propose these remnant ad spaces on a marketplace / Ad exchange that works like a high frequency stock exchange in real time (we call it Real Time bidding – RTB).
Demand Side Platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. DSP’s automate the buying process and incorporates many facets that were previously done manually through an ad network such as wide access to inventory and vertical and lateral targeting, with the ability to serve ads, real-time bid on ads, track the ads, and optimize. This is all kept within one interface which creates a unique opportunity for advertisers to truly control and maximize the impact of their ads.
Ads are placed through an auction system known as real-time bidding (RTB) that manages the transactions between publisher (the supply side) and the advertiser (the demand side). The advertiser sets criteria for buying ads such as demographics, geographic location, time of day(day parting), frequency capping(how many times your ad appears in a day) through a demand-side platform (DSP). When a web page is being loaded and has the space for an advertisement on it, information about the visitor and context of the webpage is then sent back and fourth to an ad-exchange, and then an ad is placed on the page. The ad space then gets auctioned off to the highest bidder, and whoever wins the bid gets their ad shown in that space. This all takes place in milliseconds, and doesn’t affect the site page load time or user experience.
Real-time bidding (RTB) is a means by which advertising inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction, similar to financial markets. With real-time bidding, advertising buyers bid on an impression and, if the bid is won, the buyer’s ad is instantly displayed on the publisher’s site.