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What is ad technology (ad tech)? Explain the type

What is ad technology (ad tech)?

Ad tech is a system for improving the efficiency of advertisement distribution. It is a coined word of ad = advertisement + tech = technology, and refers to all highly systemized advertisement distribution .

A long time ago, you had to submit and post your ad creatives (banners and texts) directly on your ad media. However, with the development of ad tech, it is now possible to automatically display ads that suit the user on multiple media, and the media is also more effective at a lower cost than before. There are many types of ad tech, and few marketers understand everything except those who are familiar with advertising.

Background of the appearance of ad tech

Internet advertisements (banner text) displayed on web pages are generally called “pure advertisements”. For example, we purchased the frame “Posted from March 2nd to March 8th” by the deadline (generally the previous month), prepared the advertisement by the deadline, and submitted the advertisement, so it was not possible to post it suddenly . Advertisers missed many opportunities, and the media side had a lot of inventory at different times to make up for it with “in-house advertising.” “Ad technology” has solved that problem. By utilizing the RTB (Real Time Bidding) method, it is now possible to instantly advertise, and it is now possible to advertise optimally to the “people” who are browsing instead of the “advertisement space”.

Types of ad tech

The types and characteristics of ad technology are summarized in an easy-to-understand and easy-to-understand manner. It is explained in words that are easy to understand even for those who are thinking about operation from now on.

NameOverview
Ad network
(Ad Network)
It is a system that has been popular since around 2008 and efficiently distributes advertisements to participating media. There are a wide variety of distribution destinations such as news media, social media, and CGM, and it is attractive to be able to advertise in many media at once. Nowadays, targeting and retargeting distribution based on user behavior history (cookies) is the mainstream. You can display the advertisement you need to the person who needs it.
Ad Exchange
(Ad Exchange)
It’s like a bidding system that came out around 2010. Due to the flood of media and inventory in ad networks, it was thought that the bidding system would allow media and advertisers to win-win. It is a bid-type impression billing, and the price is decided for each advertisement.
DSP
(Demand-Side Platform)
A tool for maximizing the advertising effectiveness of advertisers. Although there is a usage fee, you can deliver ads across SSP and ad exchange simply by setting your advertising budget and desired CPA / targeting.
SSP
(Supply-Side Platform)
The opposite of DSP, a mechanism for maximizing profits on the media side. The ad cost will be calculated for each impression, and the highest ad will be delivered.
3PAS (third party delivery)A method of delivering advertisements via a third-party system instead of delivering them directly to many mechanisms such as ad networks, ad exchanges, and DSPs. It is a system for collectively managing effect measurement and distribution budget.

Ad tech entrance

After all, it is necessary to adjust what to select from the many advertising menus while operating. However, it is also true that it is easier to obtain the effect if you have knowledge before distribution. From now on, we will deliver useful content to those who are considering advertising delivery.

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