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A brief history of display advertising and the rise of programmatic

• The first ever online ad ran all the way back in 1994 on what is now Wired Magazine, but was then HotWi-red.com, and featured a banner from AT&T. 

• This display ad was revolutionary in its time but would today be considered extremely bad practice. Here it is: 

DEFINITION of Programmatic Advertising

• The use of Artificial Intelligence and machine learning to buy advertising in real time, instead of going through traditional means like human negotiations and pre-set prices.

AD exchange

DMP

publisher suplier

brand advertiser

SSP DSP

RTB

sold

Co si myslí zákazníci

ccp

audio

outdoor

cpm

programmaticTV

cpt

PPC RTB

RTB

Is programmatic buying is the same as real-time bidding, then?

• No, it’s not. Real-time bidding is a type of programma-tic ad buying, but it isn’t the only one. RTB refers to the purchase of ads through real-time auctions, but programmatic software also allows advertisers to buy guaranteed ad impressions in advance from specific publisher sites. This method of buying is often refe-rred to as “programmatic direct.”

• Real-Time Bidding is just one part of the programmatic advertising ecosystem.

RTB

So what exactly is the difference between RTB and Programmatic?

• Real-Time Bidding is just one part of the programma-tic advertising ecosystem.

• It’s a way of auctioning out ad space on a case-by-ca-se basis rather than a carpet-bombing approach whe-re everybody sees the same ad.

• For a programmatic system to work properly there needs to be other key components in place. 

• On the advertiser’s side this would be a Demand-Si-de Platform (DSP), connected to a Data Management Platform (DMP).

• Suppliers (publishers) use a Supply-Side Platform (SSP) to distribute their available inventory across one or multiple Ad-Exchanges. 

• That’s a lot of terms to keep track of, but don’t worry. If you keep reading you’ll find out what they mean!

KLIENT

KLIENT 100 % 60 %

publisher

know how

SSP DSPDMP AD

server

STARÉ MODELYnákupu

OČEKÁVÁNÍ

TISK AUDIO TV ONLINEOUTDOOR

programmaticRTbPPC

Měřenícena

Výkon

jednoduchost

Výnosy

AGENTURA

DEAL

Co si myslí publisheři?

CLIENT100 %

AOR5 %

ATD15 %

DSP10 %

Value Adds25 %

Exchange5 %

Publisher40 %

A model for how the money may be split between the various stakeholders, in the typical programmatic “stack”

Co si myslí agentury?

traditional media buying

programmatic media buying

advertiser

advertiser

publisher

publisher

I’D like to buy1 mil impressions

on your site

I’D like to buy1 mil impressions

targeted atpeople who

love cats

cats R US

tomcattimes I AM a cat

so what?tribunegadget

world

you bet

that willcost $$$sign here

DSP

SSP

BUDOUCNOST

RAdio

mobil

Desktop

outdoor

Operator

SHOP

Cinema

TV

audiospotTV spot

kinoreklama online banner

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DĚKUJIZA POZORNOST