The document provides a comprehensive overview of online advertising, detailing the roles and functionalities of ad servers, ad networks, demand-side platforms (DSPs), supply-side platforms (SSPs), ad exchanges, real-time bidding (RTB), and trading desks. It explains how ads are served to users based on targeted preferences and metrics, the benefits of various advertising platforms, and the automated processes involved in buying and selling ad inventory. Additionally, it highlights the advantages of real-time bidding for both advertisers and publishers in the digital advertising landscape.

1. What Makes Online
Advertising Automated
AD SERVER , AD NETWORK , DSP , SSP , AD
EXCHANGE , RTB , TRADING DESK
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2. AD SERVER
Overview:
 Ad Server is the equipment that serves ads to the customers.
 It’s a computer server which acts as a repository of advertisements.
Large no. of ads are uploaded on this server which are delivered to
the websites.
 Ads are delivered to the websites depending on the interest of the
visitor.
 Content on the server is constantly updated so that each time a
website is visited by user , a new ad should appear.
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3. AD SERVER (Continued…) 3
Ad Serving:
 Serving ads to the potential customers is the main role of Ad Server.
There are various factors which are determined while serving an ad.
 Ad Targeting: Ads are targeted to specific users by narrowing the
population on the basis of certain traits like demographic location ,
age etc.
 Behavioral Targeting: Serving ads to the users based on their interest.
Ads matching the content that users frequently visits are served.
 Ad Metrics: Ad Metrics shows the performance of particular ad , like
how many times user clicked on it.
 Frequency Capping: No. of times the same ad is shown to same
user. Frequency capping ensures that an ad is not shown to same
user more than once during a session.

4. AD SERVER (Continued…)
Types of Ad Server:
 Remote Server-> These are owned by third party , serves ads
across domains owned by multiple publishers. Ads are
delivered from one central source which enables advertisers
and publishers to track the distribution of their online
advertisements.
 Local Server-> Owned by single publisher , serves ads to that
publisher’s domain. Helps publishers in keeping the track of
ads served.
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5. AD SERVER (Continued…)
Working of Ad Server:
 Suppose, user visits a website cricinfo.com which has three ad slots
to display ads.
 Browsers navigates the website , loads the content from content
server and similarly reaches to ad server to fetch ads to be
displayed on ad slots.
 Ad Server performs some matching process before sending ads to
the website.
 These matching process includes Frequency Capping , Running
Optimization algos , Parameters like geography , browser type etc.
 Once these matching process is done , Ad Server responds with
most appropriate ad to be served on website.
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6. AD NETWORK
 Ad Network is a collection of publisher’s websites and ad
inventory which advertisers can reach and use for promoting
their business.
 It is a company that connects advertisers to websites which
are looking to host advertisements.
 It enables the advertisers to expand their reach as they get
access to more no. of publishers through single platform.
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7. AD NETWORK (Continued..)
Benefit of Ad Network:
 Provides a single platform for advertisers where they get
access to large ad inventory and they can buy as per
their requirement.
 Enables advertisers to select the best available ad
inventory and assures them that their ads are shown on
the best possible websites which would benefit the
advertiser’s business
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8. AD NETWORK (Continued..)
Types of Ad Network:
 Vertical Ad Network:
1. Delivers advertising on specific audience.
2. Low global reach but high reach on specific target.
3. Provides exact reach for advertisers.
4. Considered as “Known-By” as targeted audience is known.
5. It’s a collection of websites with similar content and used to
target specific audience.
6. Examples are travel , automotive.
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9. AD NETWORK (Continued..)
 Horizontal Ad Network:
1. Delivers advertising on wide base of inventory available.
2. Collection of thousands of websites with different content.
3. Offers scale , reach and numerous targeting capabilities
for advertisers.
4. No. of impressions delivered per day is huge as the
targeted audience is large.
5. Ad buying is done by Run of Network and is often a blind
buy.
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10. DSP – Demand Side Platform
 DSP is a software which enables advertisers to purchase ad
inventory in automated fashion.
 Advertisers and agencies get access to multiple sources of
inventory and with the use of Real time bidding they can buy
them as per their requirement.
 DSP has made the advertising process cheaper , transparent
and automated.
 Impressions are bought across multiple websites but targeted to
specific user based on information like their location and
browsing history.
 DSP interact with the Ad Exchange where all the ad inventory is
available and selects the one which best suites the requirement.
 The price of each impression is decided through real time
bidding which is a kind of auction.
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11. SSP- Supply Side Platform
 SSP aims at focusing on the publishers.
 SSP enables publishers to connect their ad inventory to
multiple ad exchanges , DSP and network.
 SSP is publisher’s equivalent of DSP.
 DSP helps advertisers get more ad inventory at cheap price ,
SSP enables publishers to sell their inventory at maximum
prices.
 Publishers make their ad inventory available to ad exchange
to be sold which allows huge range of potential buyers bid for
that inventory.
 Real time auctions for the impressions benefits the publishers
in getting maximum possible price for their inventory.
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12. Ad Exchange
 Performs the role of mediator between DSP and SSP.
 Ad Exchange is a repository/pool of ad impressions.
 It’s a digital marketplace that enables advertisers and
publishers to buy and sell ad inventory through real time
auction.
 Ad Exchange plays the most vital role in making this process
automated.
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13. Ad Exchange (Continued..)
Working:
Scenario - Publishers want to sell their ad inventory and Advertisers
want to purchase it.
 Publishers connect their ad inventory to ad exchange through
SSP.
 Advertisers uses DSP to interact with the Ad exchange to get
access to available inventory.
 DSP selects the best possible inventory on the basis of advertisers
requirement.
 Price for each impressions is decided by auction which is real
time bidding.
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14. RTB – Real time Bidding
 RTB is an automated process which enables advertisers and
publishers to buy , sell ad inventory in real time.
 Unlike traditional advertising , which involved brokers for
buying and selling process . RTB has made the process
transparent and streamlined.
 Advertisers bid for impressions they want to buy, the best bid
wins the auction and gets the ad inventory.
 Bid is placed for each impressions and varies as per the
impact and importance of impression.
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15. RTB – Real time Bidding
(Continued..)
Advantages of RTB:
 Bidding is done for each impression. So , impressions with less
importance for the campaign can be bought for lower price.
 Advertisers can bid for only those impressions which they
require. They can choose as per their requirement.
 From publisher’s perspective, the ad inventory which is more
in demand , the bidding price goes and publisher can gain
more profit.
 Advertisers get access to more ad inventory and similarly
publishers get wide range of buyers.
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16. RTB – Real time Bidding
(Continued..)
Working:
 SSP (Publisher side)throws the ad inventory into the ad
exchange and waits for it to be auctioned.
 DSP (Advertiser side) determines which ad inventory to buy as
per their requirement and some other factors like users
demographic location and browsing history.
 Advertisers bids for the ad inventory and returns the publisher
with the bid value.
 SSP (Publisher) determines the bid value received from multiple
DSPs and then grants the ad inventory to the one who bids the
highest.
 Ad space is immediately transferred to DSP and ad is served.
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17. Trading Desk
 A centralized management platform which helps advertisers
in audience buying.
 It is layered on top of DSP and other audience buying
technologies.
 It is a platform that uses data and technology to help
advertisers purchase ad inventory and audience more
effectively and in real time.
 With the advent of new technologies and targeting tools , the
process of buying audience became more transparent and
automated.
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18. Trading Desk (Continued..)
 Benefits of Trading Desk:
 Improved Targeting:
Trading desk targets audience on one to one basis by matching
certain criteria. They prepare the list of criteria that defines
audience behavior and then with the use of DSP it matches
inventory and audience attribute which optimizes campaign
performance.
 Improves Campaign Performance:
Trading desk performs detailed data analysis which helps in
knowing how the campaign is performing and what are the
shortcomings.
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19. THANK YOU…
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