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 Campaigns

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.

Glossary of terms:

SDK: The driving force in safe advertising is the Software Development Kit (“SDK”) which is a computer module developed by Kidoz that the Ap developer embeds in their Ap which then enables ads to safely be served to the viewer.

  • RTB: The RTB or Real Time Bidding is a system to bid for an ad-impression in real time. It enables advertising inventory to be bought and sold on a per-impression basis via programmatic instantaneous auction. A buyer or advertiser can use RTB technologies to bid higher or lower value for a specific ad impression depending upon how attractive the impression or the audience is for its business.
  • Bid: In a real time programmatic ad ecosystem, advertisers decide the amount they wish to pay for a specific ad impression. This depends upon the value of the specific audience, geo, time of day, context and various other parameters. The highest bid wins the impression.
  • Contextual Targeting: Targeting is important to ensure ad relevance and drive better performance metrics. Contextual targeting allows advertisers to display relevant ads based on an apps content rather than using the data about the visitor.
  • Impressions: When an ad is displayed in the app.
  • CPM: Cost-per-thousand impressions also called Cost-per-Mille. This is a typical unit of price in digital advertising. For example, an app that charges $1,500 for 100,000 impressions has a CPM rate of $15 ($1,500 divided by 100,000 multiplied by 1,000).
  • CPC: Cost-per-click is the cost of advertising based on the number of clicks the ad received.
  • CTR: A Click-through-rate is the clicks divided by impressions - or the rate that people click on the ad after seeing it.
  • Video Views:  How many times a video ad was viewed. Sometimes broken down by how much the user completed, like 25%, 50%, 75%, and 100%.
  • Rewarded Video: A video ad where the viewer receives a reward for watching the video to completion (100%).
  • The Children's Online Privacy Protection Act (COPPA): COPPA is a United States federal law, enacted in 1998, that applies to the digital collection of personal information by persons or entities about children under 13 years of age. It details what a website/app operator must include in a privacy policy, when and how to seek verifiable consent from a parent or guardian, and what responsibilities an operator has to protect children's privacy and safety in digital spaces. Kidoz is COPPA compliant.
  • Re-Targeting: Also known as remarketing, retargeting is a digital advertising technique that involves tracking and displaying ads to users after they have left your site/app.  Kidoz does not use retargeting.
  • Personally identifiable information (PII): PII is information that, when used alone or with other relevant data, can identify an individual.  PII may contain direct identifiers (e.g., passport information) that can identify a person uniquely, or quasi-identifiers (e.g., date of birth) that can be combined to successfully recognize an individual.  Kidoz does not use PII.

Ad Types:

  • Banner Ads:

    Mobile banner advertising is the most common format due to its simplicity and possibility to yield higher CPMs thoughtful placement. These are displayed in static ad units often placed at the top or bottom of the screen of the device.  Mobile banner ad sizes may vary, but the most standard banner sizes are 320×480, 300×250 and 320×50 pixels for smartphones and 728×90, 768×1024 and 300×600 mobile ad units for tablets.
  • Interstitial Ads:

    Interstitials are full-screen banners that appear between game levels, and can be built into the application's script with SDKs. Mobile interstitial banners can not be closed until the interval ends that guarantees the immersive user experience.
  • Rewarded Video Ads:

    Rewarded ads offer the incentive/reward to the user who’s watching the ad in return for the extra bonuses in game, extra life, hints or valuable content. Reward advertising video (15-30 seconds), provide the choice: to watch or skip.
  • Rich Media or Playable Ads:

    These are advertisements with which users can directly interact with. This format represents an interactive type of ads that give users an opportunity to try out the demo of an app or game before installing it.  Rich media ads (playables) can be used either singularly or in combination with various technologies, including but not limited to sound, video, or Flash, and with programming languages such as Java, Javascript, and DHTML.