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most common format of programmatic, from beginning to end, to help you understand the process
When a viewer lands on a website that uses programmatic advertising, it starts the automated bidding to serve an ad to this particular viewer.
Once the SSP receives the information on the ad space, they analyse the user’s cookies to determine factors such as their geography, demographics, interests etc.
On behalf of the advertiser, the DSP makes a bid on the ad placement. All this happens in real-time which why programmatic advertising can often be referred to as real-time bidding (RTB).
The publisher lists the ad space for this viewer on their supply-side platform (SSP). The SSP acts as the seller for the publisher, letting advertisers know the characteristics of the site, user, and ad space that allows DSPs to make their bid. Essentially, they advertise the product (the ad space) for sale.
Next, the corresponding demand-side platform (DSP) reviews the information on the user provided by the SSP. DSPs act for advertisers to choose ad space that aligns with the advertisers budget and targeting parameters. It assigns the ad placement a value based on the website and user’s characteristics.
Once the SSP receives the bids from various DSPs, the SSP will then pick the winner.
Once the winning bid is picked, the SSP displays that ad to the user on the publisher’s site. This entire process happens in milliseconds all while the page is loading for the user.
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