Programmatic
Advertising
Selling and Buying Ads
• How many ads are shown on the internet everyday?
• Thousands?
• Millions?
• BILLIONS!
• Some website (Ad Publisher) must sell its ad-space (Ad –Slot or Inventory) to do this, and
some company (Advertiser) must buy this ad space.
• Imagine if humans are managing each of these ad transactions!!
Selling and Buying Ads
• Earlier, Ads were sold specific to the websites. For example, all car ads were sold to
Team-BHP, Autocar India, cardekho.com, or cawale.com and these websites were
paid money based on the number of impressions they created.
• Later, with the presence of cookies, and advanced data processing capabilities, we
were able to target the exact customers that we wanted, and you DO NOT want to
advertise on these generic sites, but whichever site your prospect goes to.
• For example, A person who had earlier searched for car prices, might be trying to
book tickets on book my show or reading news on InShorts, or just playing LudoKing.
• How would you reach your customer, since you have bought ads only on the ads only
a particular website?
Basics of Programmatic Advertising
• Programmatic Advertising is automated ad buying.
• It signifies the shift from content targeting to audience targeting.
• Content targeting was based on the content of the website on which an advertiser wanted to
display his/her ads.
• But if the target audiences are defined based on their online behavior, and these specific
audiences are targeted, it’s called Audience Targeting.
• For example, someone who visited either of the following in the last one month:
• A Car Portal
• A Car finance site
• A Car review youtube channel
Targeting all audiences • Programmatic Advertising infers
coming to a website the intent of the user, and targets
without intent be like! based on the intent.
• It reaches the
• Right Audience
• At the Right Time
• At the Right Place
• At the Right Price
• With the Right Message
Quick Summary of Programmatic Ads
• https://youtu.be/t2A6I4P5YIo
Need and Evolution
Advertiser Publisher
Buy Ad Spaces Sells Ad Spaces
(Has Demand) (Has Supply)
Insertion Order (IO) – The final
Samsung agreement between the advertiser and BBC.com
Apple the publisher for the specific Ad Slot LudoKing
Mahindra InShorts
Need and Evolution
• But sometime, supply of ad space is more than the demand or vice versa.
Need and Evolution
AD NETWORKS
Advertiser Publisher
Advertiser Publisher
Advertiser Publisher
Buy Ad Spaces Sells Ad Spaces
(Has Demand) (Has Supply)
Samsung BBC.com
Apple LudoKing
Mahindra InShorts
Need and Evolution
• We need something to manage this demand and supply.
• ENTER DSP and SSP!
Need and Evolution
Advertiser
Advertiser
Advertiser DSP SSP Publisher
Publisher
Publisher
Buy Ad Spaces Sells Ad Spaces
(Has Demand) (Has Supply)
https://youtu.be/DEkOojy
Samsung hIp4
BBC.com
Apple LudoKing
Mahindra InShorts
Publisher networks and Ad Agencies
• Along with DSPs and SSP’s there are somethings called as Ad Agencies and Publisher
Networks.
• They are aggregators of demand and supply, when individual publisher cannot afford to have
their own systems for bidding.
• Networks predate SSPs and DSPs.
• Long tail websites each having a small number of unique users and pageviews cannot afford to
have their sales force and hence rely on networks to monetize their websites.
• The advertisers get access to multiple websites in one go.
• Eg. Google Ad network, , Yahoo! Ad network, Tribal fusion, Vdopia, InMobi, Ozone
• https://youtu.be/X5HINj01ARw
Supply Side Platform (SSP)
• Enables publishers to manage ad impression inventory and maximize revenue from digital
media.
• The yield manager of publisher. Tries to maximize yields , i.e. CPM maximization is their goal.
• It shares the context of the webpage such as Topic, Keywords, URL, User Profile (Demography,
location, Device, Browser, etc.) with DSP.
• Also requests DSP to bid for an AD impression.
• Also Shares a Cookie ID with the DSP. (Details of Cookies in upcoming slides)
Demand Side Platforms (DSP)
• Allows the advertiser to buy the inventory from various ad exchanges and data exchange accounts.
• Attempt to find the most efficient impressions based on the constraints by the advertiser.
• DSP drops third party cookies to the user's browser. (Not dropped by the domain that the user is
visiting)
• This cookie will (call to and) help the DSP to remember the user, when the DSP meets the user in
another website.
• The DSP still don’t have access to the cookie dropped by the website that the customer visited.
• But knows the old domain that the customer visited.
Cookies
• Cookies are small text files placed on a user’s computer (or smartphone), which are commonly used to collect
personal data.
Types of cookies
Session cookies (temporary cookies)
• Help websites recognize users and the information provided when they navigate through a website.
• Retain information about a user's activities for as long as they are on the website.
• Once the web browser is closed, the cookies are deleted.
• Commonly used on shopping websites or e-commerce websites.
Permanent cookies (persistent cookies)
• Remain in operation even after the web browser has closed.
• For example, they can remember login details and passwords so web users don't need to re-enter them every
time they use a site.
• The law states that permanent cookies must be deleted after 12 months.
Cookies
First-party cookies
• Installed directly by the website (ie domain) the user is visiting (ie the URL shown in the
browser's address bar).
• Enable website owners to collect analytics data, remember language settings, and perform
other useful functions that provide a good user experience.
Third-party cookies
• Installed by third parties with the aim of collecting certain information from web users to carry
out research into, for example, behaviour, demographics or spending habits.
• They are commonly used by advertisers who want to ensure that products and services are
marketed towards the right target audience.
Cookies
Flash cookies
• Flash cookies, also known as 'super cookies', are independent of the web browser.
• They are designed to be permanently stored on a user's computer.
• Remain on a user's device even after all cookies have been deleted from their web browser.
Zombie cookies
• Zombie cookies are a type of flash cookie that is automatically re-created after a user has
deleted them.
• Difficult to detect or manage.
• Often used in online games to prevent users from cheating but have also been used to install
malicious software onto a user's device
Cookie Check!
• Open your google Chrome
• Click on the three dots on top right
corner
• Settings, Scroll down to bottom
• Site Settings,- All Sites- To see all the
cookies that you have in your device.
• Back to Site Settings - Scroll down –
Content
*Creative representation of DSPs dropping a • Also Checkout "Third party Cookies"
cookie into your browser and getting it back.
Benefits of DSP
• Cost Efficiency – Low CPM when competition is less.
• Buying Efficiency – Entire exchange is automated.
• Real-Time Optimization- No time lag – Higher ROI
• Granular targeting –Cookie Matching – Higher ROI
• Scale –Each DSP interacts with more than 15 SSPs and can serve more than 15 Billion
impressions per day.
Data Management Platform
• Used by publishers and buyers to store and manage audience data from multiple sources.
• Three types: First-, Second- and Third-Party data
Data Management Platform
• First-Party Data
o Owned by the advertiser
o Used to re-engage with audience,
o Site behavior, Search Queries, Purchase activities, CRM data.
• Second-Party Data
From another company, publisher or platform made available to an advertiser for targeting. Eg.
FB, Google
Reach (> 1st Party), Accuracy (>3rd Party), Performance (Cost effective)
• Third-Party data provider
Collects data from all available sources and gives it to advertisers to bid on. (Eg. Bluekai,
Exelate, Neustar)
Data Management Platform
https://blog.coupler.io/data-management-platform-for-marketers/
Ad Server
Companies that will hold your ad and give you
reporting, analytics and verification of display ads
Dynamic Creative Optimization: Changes the content
of the ad based on the allocated slot size and the type
of customer who is watching the ad.
For example, and ad can show Bright Sunny image in
the morning and light-dull image in the evening.
Media Optimization is done by DSP, Creative
Optimization by Ad Servers.
Cookies are used to understand who the customer is.
Ad Exchanges
Brings together Buyers and Sellers of online ad inventory in an automated manner. Basically, a
stock exchange. (eg. Google Ad Manager, formerly Google AdX)
Open and Private Exchanges
• *Ad exchange finding the right ad slot for you • *Your Ad after finding the right ad space in a website
• *Ad exchanges approving and matching the bid by DSP and SSP.
DMP
Data Management Ad Server
Platform
AD
Advertiser DSP SSP Publisher
Exchange
Verification Vendor
(To avoid Ad frauds)
Metrics in Online Advertising
• https://youtu.be/TJ9OT_0m9xE?list=PLPemR-GWZGgAuPRgIj6H2HOEP2njBDHHJ
5 star ad- for valentines day
https://youtu.be/dxECFQr533o
More on Ad exchanges and the TYPES of
Programmatic Ads in the next Session
