The Acronyms

Even before you begin to scratch the surface of Programmatic, it is very apparent that this realm of Digital is full of acronyms. So let us open up these acronyms and understand what they do and how they fit in to the programmatic ecosystem.

Before programmatic gained headway thanks to ad tech, the acronym RTB already existed.

RTB stands for Real Time Bidding; In the most simplest of terms it was one of the first ad technologies introduced around 2007 that made it easier for ad networks to buy only the inventory they want. RTB is the act of buying digital inventory from a number of publishers on an impression per impression basis, typically involving an auction pricing mechanism.

RTB gave way to the Ad Exchange…

Ad Exchange; It’s a marketplace where media is bought and sold with complete transparency and fluidity, modelled after the same principals as the stock exchange. Examples of Ad Exchanges today in the market are Appnexus, Google Adx, and OpenX.

It is in the exchange where bidding from ATDs and DSPs is done.

ATDs stands for Agency Trading Desks; These are the audience-buying divisions of agency holding companies and their promise is to help match the right audiences to the right ad impressions efficiently and at scale. Below are the agencies and their audience-buying divisions;

DSPs are Demand Side Platforms; These are systems that serve ads on behalf of the advertiser in real-time based on specified rules. Those rules are based on the data provided by advertisers and by inventory sources (Exchanges and SSP’s) when an impression is offered up for auction or sale. Examples of DSPs in the market today are Dataxu, Rocketfuel, Turn, and [x+1]

SSPs are Supply Side Platforms; The supply refers to the seller of media, which usually means the publisher. Supply-side platforms are vehicles for publishers to make their inventory available for programmatic buying via a marketplace. Examples of SSPs today are PubMatic, Admeld and Rubicon.

And since 2010, since the market saw the true value of Big Data – came the DMPs.

DMPs – Data Management Platforms; These are data warehouses for gathering and analysing both first and third-party data. DMPs are aggregators, collecting and managing data that enables marketers to analyse characteristics of an audience segment, which can then be translated into more focused and effective campaigns. This typically means classifying audiences into categories, such as “IT Decision Makers” or “Early Adopters” Such DMPs are Audience Science, Krux and Lotame. Third-party data providers would be Blue Kai and eXelate.

Once the basics are out of the way, we can begin to move on to the type of Programmatic available and delve deeper into the ad technologies of today that have accelerated programmatic into the world of advertising.