How an Ad is Served with Real Time Bidding (RTB) - IAB Digital Simplified

when you visit a web page with your browser a complex process of content selection and delivery begins involving video or mobile environments can make it even more complex let's break it down for you keeping to a desktop environment example will show you how an advertiser might have their ads placed on a website using an automated real-time bidding system the process begins when you visit a publishers web page the publisher is the website owner publishers generate content such as news music information sports and other entertainment this content draws an audience and the publisher sells ad space to advertisers who want to reach that audience upon visiting the publishers web page the browser opens a connection to the publishers server the publisher server then assembles content for the page after returning the requested content in the form of HTML the browser begins to interpret and render it at least one line of that HTML code represents the opportunity to display an ad within that one line of code there's a URL that tells the browser where to go to retrieve ad content the publisher has an ad server that uses built in logic to choose what happens next by considering a series of important questions like does this opportunity to show an ad work from one of my premium inventory buyers or is there anything I know about the consumer viewing my content that will help me decide which advertisers should get this opportunity if the ad space isn't reserved for any specific advertiser the publisher ad server may decide to put this opportunity out on the open ad market where they might get a better deal to put the ad opportunity on the open market the publisher ad server connects to an SSP which stands for supply side platform this is a platform that the publisher uses to monetize its programmatic ad inventory the SSP applies additional logic asking questions such as have I seen this consumer before or what does my data provider have to say about this consumer using that acquired knowledge it sends the ad request off to an ad exchange meanwhile the Ad Exchange has been busy connecting to and communicating with potential buying systems these systems include demand-side platforms or DSPs networks and even other exchanges now in the same way that I can tell a stock broker I will buy a hundred shares of some stock the moment it falls below a certain price by side systems can tell the exchange that they will pay $1 per thousand ads displayed to males 35 to 50 years old living in the Pacific Northwest this is called a pre cached bid if fulfilled it will speed up the process of filling a real-time or programmatic order for an ad now for the sake of this example let's say there are no pre cached bids in that case the exchanges next step is remarkable it says - all of its partners if you want a chance to show an ad to a person meeting this specific criteria tell me how much you are willing to pay and do it in less than 10 milliseconds let's put that in context for you it takes 300 milliseconds to blink your eye despite this seemingly unrealistic requirement of the exchange buyers respond in that time and the exchange selects a winning bid the winning DSP passes instructions to the exchange for retrieving the ad creative the exchange passes those instructions to the SSP the SSP sends the request to the publisher ad server and finally the publisher ad server responds to the still open HTTP connection telling the browser to go to the agency ad server for the ad the agency ad server tracks ad performance for advertisers and upon receiving the ad request originating from the DSP with the winning bid the agency ad server records the request as an impression now the web browser can finally render the ad within the web page content resulting in the delivery of an ad most appropriately matched to you this entire process depending on internet speeds can happen in a fraction of a second the digital landscape is complex even more so than explained in this simplified example more systems may be involved than represented here and if the ad is served to a video player a connected TV or a mobile device process may look different the IAB is helping to make technical operations like this and others work more smoothly across the digital landscape to learn more about digital advertising visit IAB net

Channel: IAB - Interactive Advertising Bureau

Views: 349,124

Rating: 4.9132152 out of 5

Keywords: Real-time Bidding, RTB, Advertising (Interest), digital, media, marketing, digital advertising, ad agencies, advertising agency, programmatic, mobile, interactive, online, tablet, video, ad server, ad tech, ad technology, digital media, online media, digital ads, ads, ad sales, advertising sales, advertising trade association, advertising industry, Interactive Advertising, cross-screen, advertiser, marketer, IAB

Id: -Glgi9RRuJs

Length: 5min 28sec (328 seconds)

Published: Thu Jun 19 2014