Last month we gave a quick overview of programmatic terms: One exchange connects many advertisers with many publishers. This month, let’s explore some of the key components and understand how the demand-side (buy-side) of programmatic works.
The IAB published a video to explain the programmatic ecosystem in 3 minutes.
Programmatic is about using technology to connect thousands of buyers and thousands of sellers together.
Ad Exchange (the centre)
In the middle, we have the Ad Exchange like Google AdX, OpenX, and Rubicon. This is the centre of programmatic. Thousands of publishers’ digital ad inventory are placed in the Ad Exchange to be sold. Thousands of advertisers put their ad campaigns in the Ad Exchange. It is up to the Ad Exchange to match the right advertisers to the right publishers.
Advertiser, brand, or agency. This is the party that will run a campaign. They are the buyers, aka demand-side.
The buyer will use a DSP (demand-side platform) to buy campaigns programmatically. The DSP connects to multiple Ad Exchanges. If the buyer wants to connect to only one Ad Exchange, they do not need to use a DSP.
Buyers can also use more than one DSPs to buy campaigns. Holding companies like Omnicom have their own ATD that control multiple DSPs.
An ATD stands for Agency Trading Desk, which is used by holding companies to manage multiple DSPs. For example, Omnicom’s ATD is called Accuen. Accuen can manage multiple DSPs such as DoubleClick Bid Manager and The Trade Desk.
- The centre of programmatic is the Ad Exchange
- The components to demand-side programmatic are: ATD and DSP
- Advertisers use ATD and DSP to connect to Ad Exchange