Core Components of Advertising Technology
SUMMARY- Advertising Technology is a wide range of software and tools that brands and agencies utilize to strategize, set up, and control their digital advertising activities.
Advertising Technology is commonly known as Adtech. It refers to a collection of software and tools used by brands and agencies to plan, set up, and control every aspect of digital advertising. The advertiser (demand-side) and the publisher (supply-side) are the two leading players in the world of adtech.
Advertisers want to get the maximum value of money they have invested by running successful ad campaigns to meet their target audience, optimize specific campaigns, measure ROI, and collect consumer data.
Publishers fulfil the demand of advertisers and generate revenue from advertisements by showcasing these ads on their publication(s) (website or app), boosting ad impressions, optimizing bids for ad slots, and collecting visitor data. Publishers must address all these matters in accordance with the platform's User Interface (UI).
Adtech supports advertisers and publishers in achieving their objectives by providing applications that cater to their individual needs.
The Adtech Ecosystem
The media buying process is still unaffected today, even though the introduction of adtech has added several components to the system that make it easier for demand- and supply-side parties to control advertising campaigns. Here are some of the core components of the adtech supply chain to get a better understanding of it:
Media companies is in charge of distributing advertiser's ad budgets across different platforms, which means they buy media for their clients. They differ from advertising agencies because they do not participate in the creative aspects of advertising campaigns.
Agency Trading Desk (ATD)
A set of services offered by media agencies is known as an agency trading desk. The ATD is in charge of planning, buying, and managing advertising through various platforms. Advertisers who are not ready to invest in a DSP or hire an in-house team may use ATDs as a scaled-down version of demand-side platforms.
Demand-Side Platform (DSP)
Advertisers may use Demand-Side Platforms to purchase ad placements in real-time at lower prices. Advertisers can buy search, display, video, and smartphone ads through DSPs, commonly used for remarketing ads. To secure ad slots from the ad inventory, DSPs coordinates with ad networks, ad exchanges, supply-side platforms, or publishers.
Companies that function as an intermediary between advertisers and publishers are known as advertising networks. Ad networks collaborate ad inventory from different publishers and offer advertisers a range of options from where they can choose.