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Programmatic Ads 102
Going a little deeper, this is how an auction looks like in the adtech ecosystem.
cc-ing folks with positions in programmatic: @dannyvena @danielsparks @Beth_Kindig @RamBhupatiraju @FromValue @adventuresinfi @KermitCapital @7Innovator
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Going a little deeper, this is how an auction looks like in the adtech ecosystem.
cc-ing folks with positions in programmatic: @dannyvena @danielsparks @Beth_Kindig @RamBhupatiraju @FromValue @adventuresinfi @KermitCapital @7Innovator
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I did a very high-level overview as a part of 'Programmatic Ads 101' https://twitter.com/dhaval_kotecha/status/1324947022923882496?s=20
When a user opens a publisher's website, say http://espn.com , a series of code gets triggered from the publisher's website to fill their ad spaces. One such call is to an SSP like $MGNI.
$MGNI then sends those requests to various DSP's asking to fill that ad space
$MGNI then sends those requests to various DSP's asking to fill that ad space
These requests are according to the OpenRTB Spec by @iab and are sent to multiple DSP's
These requests would contain data specific to the user.
e.g device ip, device type, site domain, size of the ad space that needs to be filled, and many more details.
These requests would contain data specific to the user.
e.g device ip, device type, site domain, size of the ad space that needs to be filled, and many more details.
The DSP would then be able to utilize this information provided by the SSP and use machine learning to determine the best fit for the particular ad space on behalf of their clients (i.e the advertiser)
The DSP sends back the bid price and the actual ad (i.e ad markup) to the SSP
The DSP sends back the bid price and the actual ad (i.e ad markup) to the SSP
The SSP having sent the same request to multiple exchanges is getting bids for the same ad spot from multiple DSP's.
Whoever bids the highest in the allocated time wins the auction and their ad is the one that gets sent to the user's device.
Whoever bids the highest in the allocated time wins the auction and their ad is the one that gets sent to the user's device.
This process is a lot more complex than what it sounds, but it's crazy that this entire process end to end takes less than a fraction of a second to complete.
The DSP's process millions of QPS (e.g $TTD processes 12MM QPS) which enables them to find the best inventory to bid on.
The DSP's process millions of QPS (e.g $TTD processes 12MM QPS) which enables them to find the best inventory to bid on.
The SSP on the other hand is also sending tons of requests and conducting millions of auctions each second.
One thing to remember is that the DSP's drive the budget, so it may be possible that an ad slot never gets filled because no DSP bid for that spot.
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One thing to remember is that the DSP's drive the budget, so it may be possible that an ad slot never gets filled because no DSP bid for that spot.
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