The working of DSP, Ad-exchange and RTB

In this article we will see the working of Ad-exchanges, DSPs and SSP in greater detail.

1.    User visits a webpage which has an ad to be shown. The publisher web server sends back a set of code to tell the browser to get the content of the ad from some other server + the formatting instructions.

2.    The web-browser depending upon the instruction contacts the Ad-exchange and/or the SSP (Server Side Platform). As can be seen from the diagram, the cookie information (cookie id) is also passed along to the ad exchange. The SSP might already have the cookie with that id (it may not).

o    If SSP has the cookie with the same id as passed to it then it will have a lot of information about the user and related information. E.g. what he searched for previously and other demographic information. And thereby it will fetch a high bid price in bidding through RTB based DSPs.

o    If SSP doesn’t have the required cookie, then also the bidding will go along but since won’t have much information about the user, it will fetch lesser price.

3.    The SSP now opens up the requests for bidding for the ad slot with all the DSPs. The DSPs too will get the cookie information if possessed by the SSP. This way the DSPs can match the cookie data with their targeting mechanisms and their own data and come up with the bidding price.

4.    DSPs would accordingly respond with their respective prices.

5.    SSP would then decide the winning big then passes on the winning  DSPs redirect to the web-browser.

6.    Web-browser then connects with the winning DSP.

7.    Winner DSP sends the user the marketer’s ad server redirect.

8.    The web-browser using the redirect then contacts the marketer’s ad server.

9.    The marketer ad server sends the final Ad.

10.  The ad is displayed to the user by the web browser.

 SSPs are at their heart yield optimization tools for publishers. Most began as tools for publishers to juggle ad networks in order to determine the best way to sell remnant ad inventory. With the advent of ad exchanges and RTB, these yield optimizers have morphed into SSPs, integrating audience-based targeting and yield optimization into a single platform. Publishers work with SSPs to sell their inventory through a RTB market to the highest bidder, not through a fixed CPM. The rate is determined by an ad’s potential audience so publishers with premium content that attracts highly desirable viewers can generate high rates for their inventory. SSPs coordinate online consumer tracking with demand-side platforms through cookie-synching, allowing advertisers to target and retarget specific types of consumers who fall into a publisher’s audience category. This allows advertisers to buy access to an audience, not just inventory. Publishers can also create rules for brand safety on SSPs so that they can prevent inappropriate ads from being served or undesirable brands from purchasing inventory.