Ad Tech 101
The following is a simplified explanation of the basics of Ad Tech that I wish someone had told me when I jumped sideways into this field a decade ago. After absorbing this information, the other case studies in my portfolio should make a bit more sense.
SUPPLY
In the Ad Tech world, “Supply” means wherever there is space to put an ad. That might be a website, digital billboard, video, or anywhere else there is an audience advertisers want to reach. This is sometimes referred to as the “Sell Side”, “Publishers” or “Sellers”.
DEMAND
In the Ad Tech world, “Demand” means Advertisement. Companies are trying to sell a product or service and want to reach a targeted audience that is interested in buying. This is sometimes referred to as the “Buy Side”, “Advertisers” or “Buyers”.
SELLER’S AGENT
When selling a house, you want to get as much money as possible for it. So you hire a real estate agent to help. The agent represents you, the owner, in the negotiation. In the Ad Tech world, your digital agent is the Supply Side Platform or SSP.
BUYER’S AGENT
When buying a house, you want the best home you can find for the lowest possible price. So you hire a buyer’s agent who will search the available inventory in your chosen area to find possible matches. In Ad Tech, this digital agent is the Demand Side Platform or DSP.
SSP
The Supply Side Platform is where the owner (publisher) of digital inventory defines what space they have available on their website or app for an advertisement. They may also describe the type of people who visit, and how much they expect to earn from advertisers looking to buy space to place their ad. Advertisers are typically charged a small amount for every 1,000 views or “impressions”. This is called “Clicks Per Mille” (CPM).
DSP
The Demand Side Platform is where advertisers go to define their ad campaigns. They upload graphics or video files and describe what they are trying to achieve. The power of digital advertising lies in the advertiser’s ability to target a certain group of people they feel would be interested in their product or service. They create ad campaigns and hope to find great space to advertise to a targeted audience for a great price.
PROGRAMMATIC ADVERTISING
When you visit a webpage or an app that displays ads, the publisher sends a request to an ad exchange, which is a platform that connects publishers with advertisers. The ad exchange then sends back information about the available ad inventory and the advertiser can decide to bid or not based on a variety of targeting options.
DEALS
Deals between publishers and advertisers are facilitated through programmatic technology, which allows for automated buying and selling of ad inventory based on pre-negotiated terms. By setting up deals, advertisers and publishers can establish long-term relationships and ensure more control over how their ad inventory is bought and sold.