Advertisers and content producers find the best solutions for placing ads through an automated system. They do not need to communicate directly with each other, as the system does this work for them. Content producers strive to increase the price for their marketing space, while advertisers prefer to find the best places to place their ads at the best price.
To do this, the distributor uses a demand-side platform (DSP) to determine key parameters of the marketing campaign, such as budget, duration, placement schedule, and targeting strategy.
The auction process on the Ad Exchange marketing platform allows advertisers to compete for the opportunity to put their materials in front of the target audience.
The content producer connects to the SSP (Supported Space Management System) so that the platform can then automatically determine the price for the marketing space, taking into account many area code philippines mobile different aspects. The results of the bidding determine who gets to promote their ads and for how much.
The website hosts selected creatives, which are automatically installed in the placements and shown to the target audience. The programmatic buying service runs an auction where sponsors bid to have their ads shown to each individual user.
The winner is determined by the second price auction algorithm, and then their work is transferred to the SSP from the DSP. The parameters of the target audience and the needs of the advertising campaign are taken into account when selecting creatives for placement.
An example of programmatic advertising in action
Source: shutterstock.com
An illustration of an advertising strategy from the perspective of standard clients looks like this:
The visitor opens a web resource, and at a certain point, when the page loads, the browser sends a request to display an advertisement (a bid request) to the SSP. The bid request contains meta-information about the consumer (geolocation, gender, age, device, interests, etc.).
SSP creates a lot for participation in the RTB procedure and sends the information to DSP. DSP refines the consumer profile using the DMP system to set up targeting as accurately as possible and display advertising materials to the interested target audience.
Sponsors actively participate in the auction, each of whom places bids for the display of their advertising materials to a specific user. The SSP analyzes them and identifies the winner using the second-price auction algorithm. The winner's advertising materials and creative works are then transferred from the DSP to the SSP, where they are posted on the website.
The result is the delivery of truly useful advertising to the user, corresponding to his needs. The publisher receives income from advertising, and the sponsor displays his ads to an interested audience. Each of the parties derives its own benefits from such interaction.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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