How does programmatic ad buying work?

Programmatic Advertising ad serving process is the same as how it happens in an Ad Network, but the difference comes in how the decision is made to buy the inventory. Programmatic Advertising uses a data-driven approach, and key players are

Supply Side Platform (SSP): They helps the website to get high CPM and fill rate

Demand Side Platform (DSP): Its an Advertiser platform which helps deliver the ad to the right user at the right time

Ad Exchange: It’s similar to the stock exchange instead of people and shares; they deal between Publisher and Advertiser to buy and sell inventory.

  • It starts with a user visiting a website, and A bid request through SSP reaches the Ad exchange platform.
  • Bid request contains the behavioral, Demographics, Geography information, etc.,
  • Ad Exchange conducts an Auction in Real-time Bidding model. They pass all the information on the DSP.
  • DSP would cross-check the user cookie information that is matching in their user table or DMP audience list. 
  • Advertisers send Bid responses with the creative location after finding the user formation and their relevance to the advertiser.
  • Ad Exchange collects all the Bid responses and sorts them from highest to lowest. Then they select the advertiser with the highest bid price.
  • Ad Exchange selects bid responses directed to the Website through SSP, and the Ad gets served to the user. 

The entire complex process is completed around 100 milliseconds, which is the beauty of Programmatic Advertising.

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