• AdamHopkinson

The Programmatic Ecosystem

Updated: Dec 30, 2018

Why Programmatic Media? What is it?

A way to buy and sell digital inventory with the use of technology.

Programmatic quite simply means “automatic” with data.

Industry question : How can we give better results to advertisers?

This is essentially why Programmatic was created.

Advertiser Advantages

Right Person at the Right Time

Reach and target audience groups

Incorporate data into campaigns to increase campaign performance

Improves ROI, by lowering media costs

Live optimization

Robust reporting and insights

Publisher Advantages

Improves the user experience

Less operations cost

Allows sale of remnant inventory

Potential to gain higher yields

Offers price transparency and inventory insights

Access to new demand sources, quickly

AdserverStores and delivers digital ads to web browsers or mobile apps. It also provides reports on the performance of those ads.DMP (Data Management Platform)Centralised platforms used by agencies and publishers to manage and merge data such as cookie IDs. Using a variety of data sources (1st, 2nd & 3rd) the platforms can generate audience segments for improved targetingTrading Desk : Perform as a digital media trading and management service, and are seen as experts in the use of data and technology

DSP (Demand Side Platform)Enables advertisers and agencies to automate the purchase of ads. Assesses the attributes of an ad impression and assigns a bid. This removes rate negotiations and manual ad IO’s. DSPs can purchase targeted advertising across a wide variety of publishers and platforms making it quicker and more efficient

Ad ExchangeThis is where RTB and auctions take place, they are highly automated digital marketplaces that enable advertisers, publishers, ad networks, DSPs and SSPs to buy and sell inventory.

SSP (Supply Side Platform)Enables publishers to automatically sell ad impressions, maximising the price they can charge for these. An SSP allows publishers to access a large pool of potential buyers including ad exchanges, networks and DSPs in real time. They also set the price floor.This is also where ‘Waterfalling’ occursPublishers daisy-chain SSPs. Publishers start by selling impressions with one SSP (Google’s AdX) at a high price floor. If the impressions don’t get picked up, publishers push them to second (Rubicon Project) or sometimes third SSPs (PubMatic) at lower price floors until they do. Most SSPs are now adservers - the best example of this is Google DFP for Publishers. It first launched as an Ad Server but now it also operates as an SSP This means they are in control of their waterfalling and can serve through their own Ad Exchange, Double Click

...before an ad is served to a user an advertiser campaign is set up.Campaign defines = Duration, Audience Targeting, Creative Execution, Budget & CPM

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