What is AdTech?
AdTech stands for 'advertising technology’ and refers to using technology to buy and sell digital ads. AdTech covers a range of tools and software that can be helpful for brands and agencies to plan, strategize, and manage all digital advertising activities.The AdTech ecosystem consists of two major entities – the advertiser (Demand-side) and the publisher(Supply-side). Advertisers want to run effective campaigns and optimize their budgets to reach the target audience, gain customer insights, and measure ROI. Publishers cater to the needs of advertisers and generate revenue through ads by displaying ads on their apps, increasing ad impressions, and bids for ad slots. Adtech companies, like Kidoz, help advertisers and publishers achieve their goals in harmony by providing solutions that meet the demands of both parties.
Kidoz has three main types of AdTech Revenues - Direct Agency Campaigns; Programmatic Campaigns; and Performance Campaigns.
Direct Agency Campaigns
This is where a publisher bypasses auction and reserves a portion or entire ad inventory for a particular buyer or advertiser at a fixed cost per mille (CPM). Here the buyer and seller are known to each other and the ad placement is done utilizing the Kidoz Connect platform.
Programmatic advertising automates the process of buying and selling digital advertising space utilizing complex technology and data, such that advertisers or agencies don’t have to ponder or debate ad size, rates, et. The Ad buying is done automatically through a variety of algorithms and data insights.
What is the AdTech EcoSystem?
The process of digital media buying is similar to the traditional media value chain except AdTech has multiple components in the ecosystem to keep the management of advertising campaigns easy for demand and supply-side platforms. The key components of the AdTech supply chain are:
- Media agency: Responsible for allocating the advertiser’s expenditure budget across the channel.
- Agency Trading Desk (ATD): Plans, buys, and manages ads across different platforms and is a set of services provided by the media agency.
- Demand-side Platform (DSP): An essential platform for advertisers to buy, search, and display video mobile ads. It enables advertisers to buy ad placements in real-time on the publisher websites made available by ad exchange and networks.
- Supply-side Platform (SSP); The other essential platform where the publisher (ap developer) provides space in their ap for the ads to be displayed. The platform allows publishers to sell, display, mobile ad impressions to potential buyers in real-time.
- Data Management Platform (DMP): Collects data using analytics, and has the ability to sort and classify this information to create distinct user profile lists (known as audiences or segments) and then integrate with other platforms (DSP and SSP) in order to help a campaign reach the appropriate/target audience(s).
- Ad Exchange: A dynamic platform to buy and sell ad impressions between advertisers and publishers without any intermediaries.
- Ad Server: This platform is used by advertisers, publishers, ad networks, and ad agencies to run campaigns. It determines which ad will be displayed on an app and also collect ad performance data such as clicks and impressions.