Working & Types of Bidding

1. 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.

2. When User goes to Publishers’ Site

   • SSP takes user info from DMP & puts Ad space onto Ad Auction
   • DSP uses the data that it receives to evaluate the Ad and match it with their data and target parameters. This is used to decide a bidding price for the first impression.
   • Winning Ad is sent to Publisher which loads Ad onto their Ad space

• The process repeats whenever a user lands on the website or refreshes.

Types 

• Header bidding

• Exchange bidding: Server-side open auction hosted and controlled by Google (Google’s Header Bidding) 

• 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.

• 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.

• 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