You've explored major advertising platforms like Google, Facebook, and YouTube. But here's what happens behind the scenes: most ads are bought and sold automatically through programmatic advertising.
This automated system handles millions of ad transactions per second without human intervention.
Engagement Message
Roughly what percentage of digital ads do you think are bought automatically?
Programmatic advertising uses software to buy ad space automatically, replacing traditional manual negotiations with publishers.
When you visit a website, an instant auction happens to determine which ad appears - all in the time it takes the page to load.
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Guess: how many milliseconds elapse from page load to the auction’s winner?
This lightning-fast process is called real-time bidding (RTB). Multiple advertisers compete for the same ad space, and the highest bidder wins - all happening in milliseconds.
Each bid considers factors like your demographics, browsing history, and the advertiser's target criteria.
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What information about website visitors might influence bid prices?
Advertisers use demand-side platforms (DSPs) to participate in these auctions. DSPs are software that automatically bids on ad inventory across thousands of websites and apps.
Popular DSPs include Google's Display & Video 360, Amazon DSP, and The Trade Desk.
Engagement Message
Why would advertisers prefer automated bidding over manual ad buying?
On the flip side, publishers use supply-side platforms (SSPs) to sell their ad space. SSPs connect publisher inventory to multiple ad exchanges and DSPs.
This creates a marketplace where ad space gets sold to the highest bidder in real-time.
Engagement Message
Give one benefit each for advertisers and publishers in this real-time auction setup.
