Top 7 Terms for Advertising Ecosystem

ad network, DSP, SSP, publisher, ad exchange, RTB, and ad server

Advertising is an ever-evolving industry, with new technologies and strategies emerging constantly. As a result, it can be overwhelming to navigate advertising terminologies. In this tutorial, we will explore the top 7 terminologies in the advertising ecosystem.

Resources for this post:

• Video tutorial for this post on YouTube
• More video tutorials on Marketing and Advertising
• More blog posts on Marketing and Advertising

Let’s get started!

1. What is an ad network?

• An ad network is a company that connects advertisers with publishers who want to host ads on their websites or mobile apps. Ad networks act as intermediaries between advertisers and publishers, helping to simplify the process of buying and selling ad space.
• Ad networks typically offer a range of advertising options, including display ads, video ads, native ads, and more. They may also offer various targeting options, such as demographic targeting, geographic targeting, and behavioral targeting, to help advertisers reach their desired audience.
• For publishers, ad networks can provide a convenient way to monetize their website or app by filling unsold ad space with ads from the network’s advertisers. Ad networks often offer a revenue-sharing model, where publishers receive a percentage of the revenue generated by the ads displayed on their site.
• Some examples of ad networks are Google Adsense, Media.net, and PopAds.

2. What is a demand-side platform (DSP)?

• A demand-side platform (DSP) is a technology platform used by advertisers and agencies to purchase digital ad inventory from a range of sources such as ad networks, supply-side platforms (SSPs), and ad exchanges. The benefit is being able to manage ads from different sources in one place.
• Some example DSPs are Google Marketing Platform, MediaMath, and Amazon DSP.

3. What is a supply-side platform (SSP)?

• A supply-side platform (SSP) is an ad tech platform that enables publishers to manage and optimize their digital ad inventory such as apps and websites. SSPs are typically used by publishers to maximize their revenue from digital advertising by making their inventory available to a wide range of buyers, while also maintaining control over pricing and ad quality.
• Some example SSPs are Google Ad Manager and OpenX.

4. What is a publisher in online advertising?

• In online advertising, a publisher is a website, app, or other digital platforms that provide ad space for advertisers to display their ads. Publishers earn revenue by selling this ad space to advertisers, typically through ad networks or programmatic advertising platforms.

5. What is an ad exchange in online advertising?

• An ad exchange is an online marketplace that allows advertisers and publishers to buy and sell advertising inventory in an automated way. It’s a platform where multiple ad networks, demand-side platforms (DSPs), and supply-side platforms (SSPs) come together to facilitate the buying and selling of ad impressions in real-time.
• In an ad exchange, publishers can offer their inventory to a large pool of potential buyers, while advertisers can bid on available impressions using real-time bidding (RTB) technology. The auction process ensures that the highest bidder wins the impression and the ad is served on the publisher’s site. Ad exchanges offer a transparent, efficient, and scalable way for publishers to monetize their inventory and for advertisers to reach their target audiences.
• Ad exchanges can be open or private. In an open exchange, anyone can participate in the auction, while in a private exchange, only a select group of advertisers and publishers can participate. Private exchanges are often used to facilitate direct deals between publishers and advertisers or to maintain greater control over inventory quality.

6. What is Real-Time Bidding (RTB)?

Real-time bidding (RTB) is a type of programmatic advertising that allows advertisers to bid for ad space in real-time auctions. Here’s how it works:

1. A user visits a website or an app that offers inventory for displaying ads.
2. The publisher of the website or app sends a request to an ad exchange for an ad to display. The request includes data such as user IP address, operating system, device, demographics, location, etc.
3. The ad exchanges conduct an auction among the advertisers competing for the opportunity to serve the ad.
4. Each advertiser evaluates the opportunity and determines the maximum bid they’re willing to make.
5. The highest bidder wins the auction and their ad is displayed on the website or app.

7. What is an ad server?

• An ad server is a technology platform that serves digital ads to users and tracks their performance. Ad servers are used by advertisers, agencies, ad networks, and publishers to manage and optimize digital advertising campaigns.
• There are two types of ad servers, 1st party ad servers and 3rd party ad servers. 1st party ad server is used by publishers for managing multiple partnerships and campaigns in one interface to sell their ads inventory. 3rd party ad server is used by advertisers for managing digital advertising campaign launches and optimization.

More tutorials are available on GrabNGoInfo YouTube Channel, GrabNGoInfo.com, and LinkedIn.

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References

• What’s Inside an Ad Server? A Complete Ad Serving Guide