“FYI YOLO so BRB to your life 2day & start living it, as 2moro never comes!” Quite probable these acronyms could be the language of the future.
BTW don’t you think, the current generation is caught up with a zillion acronyms and jargon in almost every field possible? Right from the internet lingo we use in our daily life to the high technical jargon used in our professional settings, it’s strange but things are becoming easily complex. Digital marketing is one of the most influenced field when it comes to such acronyms and jargon. One such example, is RTB, real-time bidding.
Life’s made easy
A recent ad technology breakthrough that significantly made every marketer’s life easy was real-time bidding. There is no dearth when it comes to potential ad impressions for marketers to buy and sell in the field of display and mobile advertising.
These ad impressions are distributed across channels and platforms that cater to a range of audiences differentiated by keyword combinations. It is humanly impossible to track and execute the campaigns manually across the millions of websites and ad inventory without tools and technologies like RTB.
RTB is the process where website owners (publishers) sell their available ad space through an ad exchange in real-time. Advertisers on the other hand, buy the ad space which is the exact fit in terms of audience, keyword combination, category of sites, etc. This technology enabled system allows marketers to track performance of the particular ad in their respective channels offering them leverage to dynamically change strategy based on real-time feedback.
And the whole beauty of the system is it just takes milliseconds to finish and the winning ad is displayed to the end user.
Part and parcel of real-time bidding
Demand side platforms (DSP)
Demand-side platform is a software where advertisers purchase ad inventories put up by the supply-side platforms (SSP) through a software infrastructure called ad exchange.
Prior to the concept of DSPs, the transaction process of ad impressions were mostly manual. But with the launch of DSP and SSP, human intervention of handling transactions and charting the advertising strategy was almost nonessential.
Some of the names in the market: Mediamath, Rocket Fuel, Turn, DataXu, Rubicon Project Buyer Cloud, Stackadapt, etc.
Advertisers & publishers
Simply put, advertisers are the people who advertise, and here of course, we’re referring to digital display/mobile advertisers. Advertisers buy ad inventory through DSPs with set parameters from the publishers on the other side of the exchange.
Publishers are website owners who have ad space / inventory on their website for sale. Publishers utilize Supply Side Platforms to list their ad inventory which is then channeled to ad exchange for sale. That’s all! Let’s move on to demystify other complex concepts…
Supply-side platforms (SSP)
As DSP’s are for advertisers, SSP’s are for publishers to list their ad inventory. The purpose is to take full advantage of the SSP and get the best price for their inventory. SSP’s help publishers connect with various ad exchanges and DSPs simultaneously.
When an SSP shares the available inventory with ad exchanges, this will be analyzed by the DSPs on set criteria from agencies and advertisers. Following the analysis, the best fit ad inventory is bought by DSP and the exchange happens for a value set by SSPs. Operating like this ensures the best interests of both parties are kept.
Real-time auctions help publishers list inventory for multiple prospective buyers through ad exchanges. This boosts chances of best bid and reach. SSPs also empower publishers to set the price floor, which helps in maintaining a minimum price below which a deal will not be accepted.
Some of the names in the market: Switch, OpenX, Pubmatic, Rubicon Project, AppNexus, DoubleClick, etc.
Ad exchanges are like stock exchanges where advertisers purchase digital display ad inventories from publishers through a real-time auction process. It’s an important process through which publishers maximize the value for their inventory and advertisers try and get the best value for their spent money.
Some of the names in the market: DoubleClick Ad Exchange powered by Google, Verizon-owned by AOL, Appnexus, Pubmatic, etc.
Wave is up!
So, is this going to be the future of advertising? It most certainly looks like it to me. The transformation that we are witnessing is just a preview of what’s yet to come. Not just limited to exclusive RTB technology, but it can be incorporated into the next high tide called programmatic advertising. As RTB benefits both publishers and advertisers, it’s wise to move in this direction and not wait for the next tide, considering we are already in the middle of it.
Great days ahead!