Last week I already give you an Introduction of Programmatic Buying. As I mentioned in my previous blog, programmatic buying is definitely one of very important elements of digital advertising. So, in this blog you will then know the process of programmatic buying, long story short how does it work. Are you ready?
Before we started, first of all do you know that almost everyone on internet is counted as a piece of data information? Yes! That’s right, me and you are data collected in a huggeeee database out there! Without this data of people and their preferences, all programmatic stuff will not work properly. Why? Remember what I blogged last week? In this case then the specific digital advertising will not be effective or correctly targeted. A.k.a useless (oh no!) :(.
Ok, now let’s continue with Programmatic Buying. There are surely several ways to do programmatic buying, however for this blog I am going to explain in the simplest way, step by step, so you can understand rather easily… Here we go!
1. Someone, let’s call him Adam, is typing a url on a browser. Publisher content then begins to load. The browser then send Adam’s information (profile/data) to Publisher Ad Server, asking if the specific ad campaign is available or reserved beforehand. If the ad campaign is available, certain ad will be displayed on Adam’s browser. If not, Publisher Ad Server then search for advertisement that matches with Adam’s profile. Where? in Ad Exchange
Publisher of advertising publish the Ad Exchange inventory on Suply Side Platform (SSD). It’s basically where publisher sell and manage their inventories, a lot of them.
*Publisher Ad server is looking for ad campaign
2. On the other hand, advertisers (mainly advertising agencies) put their Demand Supply Platform (DSP). DSP is a platform where the advertiser put their attributes or variable relationship (criteria of their target audience for the specific ad) to purchase the inventory.
The advertiser can also use Ad Network, a company that connects advertisers to web sites that want to host advertisements. To make life easier ;).
3. When publisher and advertiser ready with what they need from each other, both party then can do Ad Exchange. Ad Exchange is a marketplace where publisher can sell their inventory (usually sell by impression) and advertiser can buy the inventory so they can put their advertisement on the place their target audience will see. Ok, imagine stock market, it’s like that but for advertising.
4. When the advertisement matches with the inventory that the advertiser wants, the next step is Real Time Bidding or RTB. Who can bid on RTB? Traders, ad networks and DSP. Each Impression of advertisement will then sold to the highest bidder. Whoever wins the RTB, the ad will then now displayed on Adam’s Browser.
All those steps mentioned above are taking in seconds, very fast and automated done. Both publisher and advertiser has specific algorithm to handle all the process. That is the reason why advertiser has to understand who is the target audience for a specific campaign completely. To make the advertising well targeted. The advertisement brought to the right person, at the right time and at the right place.
That was all from me for this week blog. As always comments and questions are always welcome!
Thank you for reading!
See you next week!