Parties in Online Advertising

I am going to give a talk highlighting elementary concepts in online advertising. It is a good time to review all the basics.

DSP Demand-side platforms receive an ad request that they must answer by a time set by the SSP or ad exchange. The time allowed can be as low as 100 ms and range up to a few seconds. DSPs decide whether they want to bid. If they do, they must select an ad, determine a bid price, and return their offer to the ad exchange.

Major chanllenges: CTR Predictions; CVR Predictions; Ad Optimiztion; Audience segementation;

ADX A marketplace for advertising that receives ad requests from SSPs. After receiving a request, the SSPs expect to receive ads from all the DSPs with a bid attached before they select the winning bid and return it to the sell side.

Major chanllenges: Ctr Predictions (if CPC); Realtime Computation;

SSP Supply(sell)-side platforms are sometimes part of an ad server, or they exist as a standalone tool that receives ad requests from publishers or ad servers. SSPs usually send an ad request to the ad exchanges, but sometimes they send this request directly to DSPs.

Major chanllenges: Revenue Optimiztion;

DMP Data management platforms provide additional user information to advertising technology (ad tech) players.

Major Chanllenges: Big Data Processing; User Profiling;

Trading Desk Shortened to ATD, agency trading desks buy large inventories of media for the purpose of re-selling it to advertisers

Merit: Bypassing the middleman. Easy to optimize.

Drawback: Complex.

AdNetworks An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements.

Merit: Simple.

Drawback: Cost Ineffective. Less Control.

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