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Tag Archive for quora

What would be killer features for a brand-new SSP?

There are quite a few Supply Side Platforms on the market. What product features would make a new one stand out? Or just name the most important features of an SSP solution, please.

This question was asked on Quora.com, below is my answer.

Supply Side Platform (SSP)The primary customer of the Supply Side Platform is the publisher. Most features are geared toward publisher needs. Access to demand is the paramount feature. Maximizing publisher yield over the long-term is also critically important. Companies that were already yield optimizers have taken the lead in the online display SSP space.

Additional features found in the top-shelf SSPs are reporting insights into the demand (i.e. who’s buying the inventory) as well as incorporating pricing intelligence into audience segments (i.e. what are my users worth). Armed with these two tools, a publisher is empowered to make more informed direct sales.

In fact, some SSPs are building utilities so support those direct sales efforts via the RTB protocol. This is being referred to in the industry as “programmatic trading” or “programmatic buying and selling”.

I think these are all stand out features of SSPs. Then there’s the one that doesn’t get mentioned too much: scale. Scale is probably the toughest challenge a Supply Side Platform will face. Consider that a killer feature, as well.

What data does a DSP have access to when bidding on an ad exchange?

Ie, what types of information are contained within the cookies made available? Thanks!
This question was asked on Quora.com, below is my answer.

Identity DataIn a typical RTB transaction there’s a user ID, pulled from the user’s cookie or some form of server side system, which is passed to the DSP from the SSP. That ID is, in most cases, the DSPs record locator for the user’s information. Most DSPs have a server side data store where this information is housed, updated and augmented from a variety of sources including data companies like Blue Kai and Excelate and their ilk. DSPs may also be collecting and distilling information based on bid request activity from that user (although most SSPs put language into the contracts governing the use of this “bid stream” data) or retargeting data gathered for their customers. This type of data system is generally referred to as a Data Management Platform (DMP) in the industry. While there are some stand-alone DMPs out there, more and more DSPs are integrating or building their own.

There are a variety of other bits of information about the ad impression that get passed in the bid stream. To get a sense of what might be passed you can look at the Open RTB API (http://code.google.com/p/openrtb/). It is, of course, very technical but there are grids that list out the information being exchanged.

What are the revenue models for SSPs and DSPs?

 What kind of gross margins do they earn? Specifically do SSP/DSPs earn a % of ad spend? If so what is it? Or do they operate on an arbitrage model, straight fee model? I’m looking for specific numbers/percentages. Do the same models apply to both desktop and mobile RTB?
This question was asked on Quora.com, below is my answer.

I can answer some of these questions, but I won’t go into specifics about the percentages since I can only really give you insight into one company with any confidence.

SSP

Revenue Models

On the SSP side the revenue model is based on a percentage of revenue flowing to the publisher. This works well as it lines up the SSP’s incentives with the publisher. The more money the publisher makes – the more money the SSP makes. SSP’s are generally geared toward serving the publishers so that alignment makes for a good relationship.

DSP

On the DSP side I know of two prevalent revenue models. The most prevalent has profits tied to a percentage of spend. This is taking money the same way the SSPs do, so it requires the advertisers that use the DSP to trust that all the algorithms and technology is: A – getting them a good price, and B – fulfilling the requirements of the campaign in the most optimal way. The major DSPs seem to have a good handle on these two elements and appear to be doing fine, even though the financial model doesn’t inherently lend itself to support “A”.  Read more

How are bidding conflicts avoided in a real-time bidding (RTB) environment with multiple ad exchanges and networks?

How are bidding conflicts avoided in a real-time bidding (RTB) environment with multiple ad exchanges and networks?
This question was asked on Quora.com, below is my answer.

In the advertising soup, how do you avoid bidding conflicts?The short answer is that bidding conflicts aren’t avoided. The DSPs have no idea that they are seeing the same impression from multiple sources – whether in serial or parallel. They don’t have anything built to detect such events.

Within a single SSP/exchange the auction can be configured in such a way that if multiple DSPs are bidding for the same advertiser or seat holder then they are not allowed to set the second price for themselves. This is something that we’re considering at Rubicon as we learn more about the perceived problem. As the recent Econsultancy report shows, most buyers are working with more than one DSP. Read more