Welcome to the final instalment of the Programmatic Survival Guide, in partnership with AppLift. In the last three parts, we have gone in detail over the main components that make up a programmatic ecosystem. In this last segment, learn how DSPs and SSPs interact with each other in the programmatic environment to serve ads.
In the programmatic environment, as soon as a user visits a web page of an app, a bid request is triggered, and unique information about the user such as the device type, IP address, operating system etc, is made available when the latter accesses a publisher’s app or web page. Publishers use SSPs to make their impressions available through an ad exchange, which then pings all the participating ad vendors for bids on the ad impressions that are about to be served. The advertisers use DSPs to acquire information about the user and to look at the bid request. DSPs utilize first-party data and the data collected from DMPs to help advertisers evaluate the best user for the campaign. Depending on the information about the user, the value of the bid is determined, and the DSPs see which campaigns best matches the user. Then, the DSPs, on behalf of the advertisers, place sealed bids against other bidders and the highest bidder wins the auction, getting to place their ad on the publisher’s mobile site or app. This process starts each time a user opens a new mobile page or an app.
With the arrival of programmatic technology, the digital ad-space ecosystem is fundamentally different. Using programmatic, advertisers can target individuals utilizing data to serve ads that are relevant to them and speed up the buying and selling process. Using audience insights, advertisers can reach out to the right person, at the right time, in the right context and, most importantly, at the right price. With the many benefits that programmatic advertising provides to the new-age advertiser, sure there are some risks as well, but programmatic advertising is a team effort between humans (campaign managers) and robots (programmatic technology). Your survival depends on the technology partner you choose!
Review the infographic to go over the steps in detail.