The document discusses DSPs (demand side platforms), RTB (real-time bidding), and programmatic buying. It explains how DSPs emerged to control buying and data in response to arbitrage in the digital ad marketplace. DSPs use 1st and 3rd party data along with verification tools to target ads through real-time bidding, guaranteed premium placements, and direct site buys. Challenges discussed include low-quality inventory, excessive retargeting, and optimizing systems based on the wrong metrics like clicks instead of conversions. The document also outlines options for outsourcing programmatic buying and special platforms for mobile and video ads.

1. Agency Viewpoint
DSPs, RTB and Programmatic Buying:
What is it & Why Should I Care?
David L. Smith
CEO and Founder
Mediasmith

2. What caused the emergence of the
DSP?
Networks built on Desire to wring Demand Side
arbitrage of exchange inefficiency out of the Platforms are born
inventory arbitrage marketplace
Control of Buying
Control of Data
Access to More Data
Eliminate Multiple Entities Bidding

3. Today’s Infrastructure
3rd Party Data 1st Party Data (Client) Verification
DMP
Agency/Trade Desk
DSP/Multi-Source
Real Time Bidding Guaranteed Premium Site Buys

4. Issue: Bad Inventory
Ghost Sites & Use of Bots
Generate impressions, saleable to
advertisers
False re-targeting
False clicks (though conversions
are tough to mimic)
Solution: Verification tools to
white list sites
Trust Metrics, Media Trust,
DoubleVerify

5. Issues: Frequency of Retargeting
Solution:
Frequency Cap

6. DIY or Automate?
Hands-on vs. Algorithm
“A typical DSP is like a Linux
Hands-on respects the planning PC or an Android
Smartphone. Super
process… powerful, but needs to be
tweaked and configured to
…but it needs sophisticated users
give you the value you need.”
You lose something with
algorithmic but it may be better Eric Picard, Rare
Crowds
than untrained users

7. Garbage in, Garbage out
What are you
optimizing against?
Most systems optimize against
clicks
Systems needed that get
feedback from 3PAS (including
view through)
Ideally, systems will eventually
optimize against CPW or brand
lift metric

8. And you can outsource even more
If you don’t have
the manpower to
run your own
small trade
desk…
Varick Media
Accordant

9. Life beyond the DSP
More than just the DSP
options for programmatic:
GDN
Facebook Exchange
Quantcast
social media options like
33across, Radiumone, addthis

10. What about Mobile/Video?
Mobile DSP’s
StrikeAd
DataXu
Metaresolver
Drawbridge
Gradient X
Video DSP’s
TubeMogul
Adap.TV

11. Want to talk more?
David L. Smith
smith@mediasmith.com
Twitter: mediadls