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Display advertising How does it work?
Display advertising
How does it work?
Simple display ad flow
Web page with ad
Publisher’s ad server
Banner
Advertiser’s ad server
Redirect Advertiser’s CDN
Redirect
BUY MORE STUFF!
Publisher-driven ad sales
● Publishers sell direct○ CPM (Cost Per Thousand) Impressions○ Run of site○ Cost per Click○ Cost per Action
● Excess inventory sent to ad exchanges
Ad buyer’s ad server
Ad buyer’s ad server
Ad exchange display ad flow
Web page with ad
Publisher’s ad server
Banner
Ad exchange’s ad server
Redirect
Ad buyer’s DSP
Winning bidder’s ad
server
Advertiser’s CDN
Redirect Redirect
BUY MORE STUFF!
Ad exchanges: Why?
● Undifferentiated impressions are a commodity sold in CPMs● Ad exchange allows buyer to pay more for targeted impressions● Ad exchange allows publishers to get more for targeted impressions
Ad exchanges: the players
● Demand Side Platforms (DSP): ad buyers● Supply Side Platforms (SSP): publishers● Ad exchanges: brokers in the middle who run the auction● Data brokers: set cookies when someone identifies themselves with
demographics, purchase intent etc
cookie12345: [segment1, segment2]
Data Management Platform (DMP)
● Track behaviour● Track identities● Pass in attributes● Upload offline data● Combine in rules to create Segments● Push Segments to adtech ecosystem● Emerging trend: selling third-party
segments, sharing between DMP users
www.mybrand.com
DMP
BehaviourEmail: [email protected]
MyBrand Identity Data
Adtech
The waterfall
Direct sales
Premium ad network or Private exchange
Remnant exchange
Google Adsense
House ads
Revenue Impressions
65% 25%
20% 20%
10%
5%
35%
15%
5%0%
But that’s also changing...
Programmatic Premium
Unreserved Fixed Price
Open Auction
Private Auction
How price is set
Auction
Fixed
Reserved Unreserved
Type of inventory
Header bidding
Web page with ad
Publisher’s ad server
Banner
Ad exchange’s ad server
Winning bidder’s ad
server
Advertiser’s CDN
Redirect
BUY MORE STUFF!
Ad exchange’s ad server
Ad exchange’s ad server
$0.30 $0.85 $1.25 $23.54
And of course that’s getting optimised
Images: Ben Kneen @adopsinsider
Learn more
● Lightbeam: shows the connections between ad tech while you visit siteshttps://addons.mozilla.org/en-US/firefox/addon/lightbeam/
● Ad Ops Insider: Ben Kneen, knows everything about ad techhttp://www.adopsinsider.com/@adopsinsider
● Ad Exchanger: news and views about the ad tech ecosystemhttps://adexchanger.com/
● State of digital ad fraud: Dr Fou lays out the scale of ad fraudhttps://www.slideshare.net/augustinefou/state-of-ad-fraud-rampup17
