Scope

This lens focuses on programmatic advertising, specifically online video advertising and streaming media advertising. This document provides best practices applicable to supply-side platforms (SSPs), ad exchanges, demand-side platforms, and related programmatic advertising platforms. It complements the best practices for ad supported content monetization (a part of the Streaming Media Lens for publishers).

The following programmatic advertising lifecycle describes the complex end-to-end interaction between a user, the publication used, the selling and buying platforms, and the advertiser.

Online video advertising logical environment

On the Buy Side (or the advertiser), the personas are:

• Advertiser: A person, organization, or company that places free or paid promotion of a specific product, event, service in a public medium to attract potential or new customers

• Agency: An organization that, on behalf of clients, plans marketing and advertising campaigns, drafts and produces advertisements, and places advertisements in the media. In interactive advertising, agencies often use third party technology (ad servers) and may place advertisements with publishers, ad networks and other industry participants.

• DSP: Demand-side platforms provide centralized (aggregated) media buying from multiple sources, including ad exchanges, ad networks, and sell-side platforms, often bidding in real time. While there is some similarity between a DSP and an ad network, DSPs are differentiated from ad networks because they do not provide standard campaign management services, publisher services, or direct publisher relationships.

On the Sell Side (or the publisher), the personas are:

• Publisher: A person or company that makes content (in any form) available for consumption, for free or for sale

• Ad network: Ad networks provide an outsourced sales capability for publishers and a means to aggregate inventory and audiences from numerous sources in a single buying opportunity for media buyers. Ad networks may provide specific technologies to enhance value to both publishers and advertisers, including unique targeting capabilities, creative generation, and optimization. Ad networks' business models and practices may include features that are similar to those offered by ad exchanges.

• SSP: Sell-side platforms provide outsourced media selling and ad network management services for publishers. Sell-side platform and ad networks business models and practices are similar. Sell-side platforms are typically differentiated from ad networks in not providing services for advertisers.

• Ad server: An ad server is a technological platform that manages, delivers, and tracks online ads. Ad servers are used by publishers, advertisers, and ad networks.

The technology Intermediary layer that connects the Buy and Sell Sides is:

• Ad exchange: An ad exchange provides a sales channel to publishers and ad networks, as well as aggregated inventory to advertisers. They bring a technology platform that facilitates automated auction-based pricing, selling, and buying in real-time.

• Data management platform (DMP): A DMP is an aggregator of third-party data. This data is made available on a commercial basis to enrich the ad supply of publishers, expand the attributes available for audience segmentation, and expand targeting by advertisers. The data is also available to advertisers to expand the attributes available to their users and widen campaign definitions.