Working & Types of Bidding
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Ad Creation:
- Advertisers reach out to Ad Agency with info ->
- Goes to DSP for starting that Ad to get Auctioned
- Taking info from DMP to get info about what type of users should be targeted.
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When User goes to Publishers’ Site
- The process repeats whenever a user lands on the website or refreshes.
Types
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Exchange bidding: Server-side open auction hosted and controlled by Google (Google’s Header Bidding)
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First price auction: Advertisers bid for an impression with the highest bidder winning and paying the publisher - The highest bidder determines the price of the impression.
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Second price auction: Runner-up sets the price of an impression in a second price auction - The highest bidder still wins, but only pays a cent more than the 2nd.
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Real-time bidding (RTB)/Open auction: The ad exchange connects buyers and sellers in real-time auctions that take just milliseconds to complete.
RTBKit: Open Source RTB System
Private marketplace: Similar to RTB + Publishers decide which advertisers will bid in a small auction before the inventory is released to the open auction.
- Programmatic direct (guaranteed): This involves the direct sale of reserved ad inventory, where the price is set and the volumes are fixed - No Bidding