Digital Advertising Ecosystem 102
Mark Dye, one of the co-founders of from Bizo, a platform for measurable and precise B2B marketing solutions gives a spot on representation of the more advanced concepts and major players in the digital advertising ecosystem.
As the industry began to mature publishers needed a way to manage who their inventory is being resold to and that is where the Supply Side Platform, or SSP was born.
SSPs are a technology layer between 3rd party ad networks, audience networks and the publishers. Ultimately, publishers house all of the ad impressions available for sale and the end recipient of a brand dollar.
Supply Side Platform
What does a SSP do?
SSP’s are tasked with maximizing the amount of revenue being generated through multiple ad networks for a publishers inventory. To have an SSP manage this for you, generally you needs hundreds of thousands of daily ad impressions. A publisher will sign a deal with an SSP to be compensated on a revenue share (range from 60-90%) or on a fixed CPM deal.
It is important as a publisher to have a competitive deal in place where they are maximizing revenue potential. There are so many ad networks in the ecosystem that will compete with other ad networks for your impressions. This creates a true auction that drives up the value for ad impressions.
What does a DSP Do?
DSP’s or demand side platforms are the opposite of Supply Side platforms. They specialize in aggregating demand and buy ad space through programmatic ad exchanges on behalf of agency trading desks, specialized companies that were born because agencies realized programmatic buying involves an advanced skill set due to rapidly expanding technology, immense growth of the industry and the many complexities of the buying and selling of ad space. Trading desks are fed brand dollars from ad agencies on behalf of brands.
In the future as programmatic because the norm and even more efficient, brads may realize they do not need give agencies a cut of advertising dollars and will be able to buy inventory directly through programmatic exchanges.
What do you think the future holds for the digital advertising ecosystem?