{"id":6932,"date":"2022-01-10T19:39:39","date_gmt":"2022-01-10T19:39:39","guid":{"rendered":"https:\/\/wiki.pontiac.media\/?docs=platform-industry-glossary\/pontiac-white-papers\/real-time-bidding-and-programmatic-media"},"modified":"2022-02-18T21:09:31","modified_gmt":"2022-02-18T21:09:31","slug":"real-time-bidding-and-programmatic-media","status":"publish","type":"docs","link":"https:\/\/wiki.pontiac.media\/?docs=platform-industry-glossary\/pontiac-white-papers\/real-time-bidding-and-programmatic-media","title":{"rendered":"Real-time Bidding and Programmatic Media"},"content":{"rendered":"\n<p><em>Ever wonder how items you shop for online seem to follow you long after you\u2019ve left the page?&nbsp; It\u2019s crucial to understand, as a consumer shopping online, or to as an advertiser looking to&nbsp; increase ROI.<\/em><\/p>\n\n\n\n<p>Real time bidding technology allows ad space on a web site to be purchased in the time period\u00a0 between when the user calls for the page and when the page renders, as shown below in Figure\u00a0 1. This transaction is accomplished through an instantaneous auction triggered by an SSP, or\u00a0 Supply Side Platform, deconstructing the ad space characteristics into a string of text. The SSP is\u00a0 also often referred to as an \u201cAd Exchange.\u201d This string of text is an HTTP call, and is conveyed\u00a0 very quickly across web servers (the Internet). The HTTP call which defines the space is sent to a\u00a0 list of bidders. These bidders, or Demand Side Platforms, recognize the ad call and reply with\u00a0 the amount they would be willing to pay to advertise in that space.<sup>1<\/sup> The SSPs then determine\u00a0 the winning bidder and award the highest bidding DSP ad space at a price approximately\u00a0 $0.00001 over the bid of the second highest bidding DSP.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"777\" height=\"266\" src=\"https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-38.png\" alt=\"\" class=\"wp-image-7384\" srcset=\"https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-38.png 777w, https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-38-300x103.png 300w, https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-38-768x263.png 768w\" sizes=\"auto, (max-width: 777px) 100vw, 777px\" \/><\/figure>\n\n\n\n<p><em>Figure 1: Real Time Bidding in Action&nbsp;<sup>2<\/sup><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>URL or Domain <\/strong>\u2013 typically the website (e.g. www.ebay.com), but can also be \u2018masked\u2019 by only providing the name of the network or \u2018seller\u2019<\/li><li><strong>Operating System \u2013 <\/strong>the OS of the computer loading the ad, be it Windows, Mac, etc\u2026  <\/li><li><strong>Browser \u2013 <\/strong>the browser of the computer loading the ad such as Chrome or Safari <\/li><li><strong>IP Address <\/strong>\u2013 The internet address of the computer loading the ad. IP addresses can be&nbsp; converted into:&nbsp;<ul><li><strong>Geo <\/strong>\u2013 the geographical location of the computer: Country, State, DMA, Zip&nbsp;<\/li><li><strong>Internet Speed <\/strong>\u2013 the speed of user\u2019s connection (high speed, dial up, etc) <\/li><li><strong>Business <\/strong>\u2013 20% of the time this can be mapped to the business registered using&nbsp; the IP Address&nbsp;<\/li><li><strong>Time <\/strong>\u2013 This is not actually passed in the Ad Call, but can be inferred as the&nbsp; impressions are being sold in real time&nbsp;<\/li><\/ul><\/li><li><strong>Cookie ID \u2013 <\/strong>the identifying number according to the SSP of the user. This is a cookie, or text&nbsp; file which is attached to the user\u2019s browser. Usually this is a number at least 16 digits long.&nbsp; At times a combination of numbers and letters. This allows the bidders to categorize users&nbsp; on their end. With this cookie the buyers can target using the following:&nbsp;<ul><li><strong>Frequency \u2013 <\/strong>How many times the bidder had seen the user. And how many&nbsp; times the user has seen certain ads&nbsp;<\/li><li><strong>Data Segments \u2013 <\/strong>A host of companies offer categorization of users using cookie&nbsp; IDs including: gender, age, income level, interest, browsing behavior, shopping&nbsp; behavior, etc.&nbsp;&nbsp;<\/li><li><strong>Sequencing \u2013 <\/strong>Serving ads in sequence to a user&nbsp;<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>Programmatic Media has a variety of different meanings. At its core the term \u2018programmatic\u2019&nbsp; includes anything that is determined using machine learning. Since the early days of ad servers,&nbsp; machine learning has been employed to select the most valuable ad to serve on the publisher&nbsp; side. This technology, similar to how Google decides which search ads to show on Google.com,&nbsp; has been around before the widespread adoption of the term programmatic. The term has&nbsp; been a buzz term for the past few years as the buyers have gained control due to the RTB&nbsp; revolution.<\/p>\n\n\n\n<div style=\"height:32px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Part II. Types of Digital Campaigns<\/strong><\/h4>\n\n\n\n<p>Programmatic Media includes all campaigns that employ technology and machine learning to&nbsp; make advertising decisions on the buyer\u2019s behalf.&nbsp;Each advertising campaign has the same basic parameters. Using a set of creative assets, the&nbsp; marketer is going to run a certain amount of budget over a period of time with the intention of&nbsp; driving a measurable result. Many different types of publishers and networks approach&nbsp; marketers. Almost all networks use the RTB ecosystem in some fashion, but only four&nbsp; organizations can claim to be \u2018programmatic solutions.\u2019<\/p>\n\n\n\n<p>Most networks still use RTB solutions but do not inform the client of their techniques. By doing&nbsp; this, networks are able to take higher margins than their typical business where they determine&nbsp; a revenue share with their publishers. The four organizations inside the green circle depicted in&nbsp; Figure 2 are those that are using the RTB technology.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Programmatic Direct: <\/strong>Programmatic direct includes campaigns run on specific publishers,&nbsp; similar to an upfront insertion order (IO) deal, but is executed entirely through the DSP. <\/li><li><strong>Performance Network: <\/strong>The evolution of the Ad Network ultimately led to RTB specialists&nbsp; who then started organizations that buy exclusively on the exchange and tout technology.&nbsp; The Agency Trading Desks also fall under this category. These are groups who buy nearly the&nbsp; entire inventory using RTB and sell the technology and \u2018best in breed\u2019 direct response&nbsp; results. These organizations are not transparent in the costs of media, and therefore their&nbsp; incentives are not aligned with the buyers.&nbsp;&nbsp;<\/li><li><strong>Private Exchange: <\/strong>This is an RTB deal that allows an advertiser to control the targeting. The&nbsp; publisher and the advertiser agree to floor pricing and the URL, but the advertiser can use&nbsp; all other metrics in the Ad Call, through their DSP, to control the targeting.&nbsp;<\/li><li><strong>Open Exchange: <\/strong>This is purely the advertiser buying inventory made available through the&nbsp; exchange using a DSP. This is the most efficient way to purchase digital media, but the&nbsp; individual controlling the DSP becomes very important.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"666\" height=\"350\" src=\"https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-39.png\" alt=\"\" class=\"wp-image-7385\" srcset=\"https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-39.png 666w, https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/02\/image-39-300x158.png 300w\" sizes=\"auto, (max-width: 666px) 100vw, 666px\" \/><\/figure>\n\n\n\n<p>Download this White Paper:<\/p>\n\n\n\n<div class=\"wp-block-file\"><a href=\"https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/01\/WP_RTBandProgrammaticMedia.pdf\">RTBandProgrammaticMedia<\/a><a href=\"https:\/\/wiki.pontiac.media\/wp-content\/uploads\/2022\/01\/WP_RTBandProgrammaticMedia.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><strong>FOOTNOTES&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\"><sup>1 <\/sup>Actually, the DSP has an internal auction of its advertisers to determine the highest bid internally. This is the first of the instantaneous auction.&nbsp; The DSP leads with the bid for the advertiser in their platform who bid the highest based on the Ad Call&nbsp;<\/p>\n\n\n\n<p class=\"has-small-font-size\"><sup>2 <\/sup>Image sourced from livelyimpact.com<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":6919,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"class_list":["post-6932","docs","type-docs","status-publish","hentry","no-post-thumbnail"],"comment_count":0,"_links":{"self":[{"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs\/6932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6932"}],"version-history":[{"count":4,"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs\/6932\/revisions"}],"predecessor-version":[{"id":7386,"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs\/6932\/revisions\/7386"}],"up":[{"embeddable":true,"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs\/6919"}],"next":[{"title":"Four Problems Solved by RTB","link":"https:\/\/wiki.pontiac.media\/?docs=platform-industry-glossary\/pontiac-white-papers\/four-problems-solved-by-rtb","href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs\/6954"}],"prev":[{"title":"How the Ad Exchange Works","link":"https:\/\/wiki.pontiac.media\/?docs=platform-industry-glossary\/pontiac-white-papers\/how-the-ad-exchange-works","href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=\/wp\/v2\/docs\/6937"}],"wp:attachment":[{"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6932"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/wiki.pontiac.media\/index.php?rest_route=%2Fwp%2Fv2%2Fdoc_tag&post=6932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}