Supply-Side
Platform (SSP):
Website publishers who want to sell their website’s ad inventory require a technical interface or platform that establishes the connection between auction place and interested buyers; this is the supply-side platform, or SSP in short.
SSPs provide publishers with an effective way to measure the monetization of mobile and website attention. Attention data includes a range of statistics such as how much time visitors spend on a site, the number of pages or pieces of content a visitor views per session and the percentage of return visitors to the site. SSPs allow publishers to jump into the ad exchange to make their inventory available and optimize selling of their online media space. More practically, they help publishers sell their inventory at a higher price because publishers can demonstrate more clearly how their content performs to advertiser.
Demand-Side Platform (DSP):
The counterpart to the SSP is known as the demand-side platform or DSP, it enables agencies and advertisers to buy advertising inventory in real time from SSPs and ad exchanges.
DSPs work together with ad exchanges and SSPs. These three elements support real-time bidding because they give buyers and sellers the ability to “value inventory on an impression-by-impression in real-time,” says Ben Kneen on his site, Adopsinsider.com. According to Kneen, the interplay of these systems enables targeted ads to be bid on and served to a browser in about 50 milliseconds.
DSPs submit a bid to the SSP along with an ad based on their valuation of a specific impression, determined from data about the user. The SSP picks the winning bid and serves up the ad. It is the complicated interplay of user data and bidding servers, the DSPs, SSPs and ad exchanges that enables the near-instantaneous delivery of targeted advertising to users.
For news organizations, the key thing to remember is that the increasingly sophisticated use of user data is allowing the ever-increasing targeting of advertising.
Ad Exchanges:
An ad exchange is a big pool of ad impressions. Publishers put their ad impressions into the pool hoping someone will buy them. Buyers then pick impressions they wish to purchase using technologies like demand –side platforms. Those decision are often made in real time based on information such as the previous behavior of the user an ad is being served to, time of day, device type, ad position and more. Ad exchanges is a digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions. They most often used to sell display, video and mobile inventory.
Website publishers who want to sell their website’s ad inventory require a technical interface or platform that establishes the connection between auction place and interested buyers; this is the supply-side platform, or SSP in short.
SSPs provide publishers with an effective way to measure the monetization of mobile and website attention. Attention data includes a range of statistics such as how much time visitors spend on a site, the number of pages or pieces of content a visitor views per session and the percentage of return visitors to the site. SSPs allow publishers to jump into the ad exchange to make their inventory available and optimize selling of their online media space. More practically, they help publishers sell their inventory at a higher price because publishers can demonstrate more clearly how their content performs to advertiser.
Demand-Side Platform (DSP):
The counterpart to the SSP is known as the demand-side platform or DSP, it enables agencies and advertisers to buy advertising inventory in real time from SSPs and ad exchanges.
DSPs work together with ad exchanges and SSPs. These three elements support real-time bidding because they give buyers and sellers the ability to “value inventory on an impression-by-impression in real-time,” says Ben Kneen on his site, Adopsinsider.com. According to Kneen, the interplay of these systems enables targeted ads to be bid on and served to a browser in about 50 milliseconds.
DSPs submit a bid to the SSP along with an ad based on their valuation of a specific impression, determined from data about the user. The SSP picks the winning bid and serves up the ad. It is the complicated interplay of user data and bidding servers, the DSPs, SSPs and ad exchanges that enables the near-instantaneous delivery of targeted advertising to users.
For news organizations, the key thing to remember is that the increasingly sophisticated use of user data is allowing the ever-increasing targeting of advertising.
Ad Exchanges:
An ad exchange is a big pool of ad impressions. Publishers put their ad impressions into the pool hoping someone will buy them. Buyers then pick impressions they wish to purchase using technologies like demand –side platforms. Those decision are often made in real time based on information such as the previous behavior of the user an ad is being served to, time of day, device type, ad position and more. Ad exchanges is a digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions. They most often used to sell display, video and mobile inventory.
Just like a stock exchange, ad exchanges serve as an open online advertising market for buyers (publishers) and sellers (advertisers) to connect. Search advertising has captured a lot of the growth in digital advertising in the past decade fueling the development of search engines. While ruling the search engine market in many countries, Google acquired ad exchange DoubleClick, which rapidly became the biggest player amongst real-time ad networks. Google’s ad exchange helps advertisers to run display ad campaigns across the Google Content Network and on YouTube. By leveraging this platform, advertisers and publishers find it easier to manage and monitor ad campaigns in a multitude of formats and across thousands of websites.
HOW DO AD EXCHANGES WORK?
Two common terms used in online advertising are ad networks and ad exchanges. These two terms are frequently used together. Sometimes you’ll even see the same definition for both! However, these are two separate things that deserve their own definitions. Here we’ll discuss what an ad exchange is and how it is different from an ad network. We will answer the question how do ad exchanges work?
A comparison between ad networks and ad exchanges can be made with the stock exchange. An ad network does the job of the stock broker. The stock broker offers a select group of offerings that will fulfill a certain need. An ad exchange is like the stock exchange. The stock exchange allows the buying and selling of inventory in an open market. An ad exchange is similar and allows the buying and selling of impressions.
HOW DO AD EXCHANGES WORK?
Two common terms used in online advertising are ad networks and ad exchanges. These two terms are frequently used together. Sometimes you’ll even see the same definition for both! However, these are two separate things that deserve their own definitions. Here we’ll discuss what an ad exchange is and how it is different from an ad network. We will answer the question how do ad exchanges work?
A comparison between ad networks and ad exchanges can be made with the stock exchange. An ad network does the job of the stock broker. The stock broker offers a select group of offerings that will fulfill a certain need. An ad exchange is like the stock exchange. The stock exchange allows the buying and selling of inventory in an open market. An ad exchange is similar and allows the buying and selling of impressions.
So how do AD exchanges work? An ad exchange is a technological platform that allows the buying and selling of digital inventory. Ad exchanges use advanced technology, allowing billions of impressions to be bought and sold in real time. The buying and selling process is based on bidding. Parties are allowed to set floor (lowest) prices and ceiling (highest) prices for each impression. Publishers and advertisers can also set criteria for the types of impressions they want to buy and sell.
Some impressions in an ad exchange may go unsold. An ad may not be sold for a variety of reasons. Both publishers and advertisers are able to set criteria for the ads they want to buy and sell, and sometimes this causes the ad space to go unsold in an exchange. For example, as a publisher you may not want to show any video ads on your site. This may restrict the number of advertisers that are available to fill that space because some advertisers want to display video. On the other hand, a publisher may only have traffic from Venezuela. An advertiser in the U.S. may restrict their ads to only be filled by publishers with U.S. based traffic. With all the possible combinations of criteria set by publishers and advertisers, you can see why some impressions go unsold.
Some impressions in an ad exchange may go unsold. An ad may not be sold for a variety of reasons. Both publishers and advertisers are able to set criteria for the ads they want to buy and sell, and sometimes this causes the ad space to go unsold in an exchange. For example, as a publisher you may not want to show any video ads on your site. This may restrict the number of advertisers that are available to fill that space because some advertisers want to display video. On the other hand, a publisher may only have traffic from Venezuela. An advertiser in the U.S. may restrict their ads to only be filled by publishers with U.S. based traffic. With all the possible combinations of criteria set by publishers and advertisers, you can see why some impressions go unsold.
If one ad network cannot match the impression with an ad, the impression can be passed on to another ad network. The second ad network will go through all the same steps as before. It will try to match the impressions with the advertisers demand and sell that impressions for the highest price possible. If this second ad network is unable to sell the impressions, it will go to another ad network and the cycle will continue. If the advertising space is still unsold after going through several exchanges, it will become a remnant ad. At this point the ad is sold for a very low price, sometimes as low as $0.001.
Impressions can be passed on when they are not sold, but it requires some technical knowledge to set up. This is called setting up passbacks. If you don’t set up the passbacks correctly, the impressions could go unsold. If it’s unsold, the impressions will be wasted. The ad space would not be filled and you would not receive any advertising revenue off of that impressions.
Ad exchanges have really streamlined buying and selling online advertisements. These exchanges allow most of the process to be automated, so advertisers can buy ads faster than ever before. It also means that there’s a better chance your ad space will be paired with an advertiser who is willing to pay the most for it.
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