The article is written on the perspective of Advertiser and Publisher. The end customer whom the campaign are targeting is covered at the end of this article. It is very important to understand which perspective the document is written to clear your doubts.
Advertiser:
The one who is willing to put the banners, who wants to
announce and attract some sales in future. His sole purpose is to provide this
product/information to different people who is either have some interest on
similar product/services he
owns.
Publisher:
Owner of website, which is willing to put space for
others on their webpages for increasing the revenue by selling advertisements.
The publisher are popular sites/blogs/aggregated sellers like Flipkart, Amazon
etc.
Ad
Network:
If you want to know the details, you can jump to the
below (Link). For simplicity, Ad networks are aggregated services that provides
the list of publishers where we an advertiser can place his
ad.
Ad Network collects and keep a huge database with
information of place holders, timeline etc. To enable the advertiser to display
the ad, based on the preferences. Time being, just take this as database with a
lot of publishers’
information.
Ad
Exchange:
It is a place similar to stock exchange where
companies/sellers (publisher in our case) sells stocks (space on their websites)
to buyers (Advertisers). There is difference between Exchange and Network;
Network holds inventory. Exchange will provide a marketplace where the inventory
get sold to the needed
advertiser.
Ad exchange required a detailed discussion towards end of
this article.
Ad
Servers:
Ad servers can be on both Publishers and Advertisers side
to monitor how advertisement are getting served. The effectiveness of the
advertisement can be reported from AdServers. This is more serving a reporting
of the campaigning these
days.
DMP:
DMP stands for Data management
platform
In simple terms database contains customer, visitors’
information on the Advertisers side. Data management platform is database
contains data from CRM side, third party data providers (Contact, Leads etc).
These contact information can be used for segmentation, analytical and
re-targeting
purpose.
DMP holds multiple logic, rules how to streamline the
advertisement for the advertiser. This may even intelligent enough to put
certain products to advertise during holidays, off-peak hours
etc.
DSP:
DSP stands for Demand Side platform is system that helps
advertisers to get the best deals from Publishers/Ad exchange based on the
priority advertiser have. DSP enables advertiser to bid for placing the
advertisement in Publisher sites based on Real Time Bidding (RTB). DSP will be
integrated to AdExchange to do the bargaining for a competitive price for your
advertisement.
There are some grey areas still on connection between DSP
and DMP. However, there are cross functionality platforms are build that serves
purpose for both DMP and DSP in a single
applications.
Refer: https://www.turn.com/blog/integration-makes-it-happen-why-an-integrated-dspdmp-solution-matters
SSP:
Supply Side Platform helps publishers to get the
advertisements from multiple advertisers. Publishers may have some off-period
then the space they dedicated for the advertisement not have consumed as
expected. For those period, to make sure there is even flow of revenue from the
websites, they can reduce the advertisement cost and can notify the changes to
the Ad Exchange; This is done using
SSP.
RTB:
RTB does the real bidding for the advertiser and
publisher in real time with in fraction of seconds. A real-time matching and
integration server that is capable of handling thousands of transaction with in
a fraction of
seconds.
Model of Advertising and
Trade-offs:
|
Model
|
Description
|
Trade-offs/
|
|
Advertiser ß à Publisher
|
With a sheer volume on the world wide web, it is
difficult to manage the direct sales with between Publisher and Advertiser.
Except dedicated home-page advertisement (Wall papers) during festival
seasons.
For the publishers, to keep a team just to do the
tracking job may not scale on the long
run.
|
· Needs
a dedicated team; and not a scalable
business.
· Hard
to manage on long run due to sheer
volume
·
|
|
Advertiser ß àAd-Network
ß à Publisher
|
|
· Inventory
is managed by
Ad-networks
· But
the lack of transparency and guaranteed
advertisement
|
|
Advertiser ß àDSP ßàAd-exchange
ß à SSP ß à Publisher
|
|
· Provides
scalable means of
advertising
· RTB
(Real time bidding) helps to get the better rates; automated advertisement with
great way to measure the
effectiveness
|
|
|
|
|
References:
https://www.youtube.com/watch?v=xnX1nxMM_R0
https://en.wikipedia.org/wiki/Ad_serving
https://en.wikipedia.org/wiki/Ad_exchange
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