Armed with a background in targeting and reporting metrics we can consider how to optimize a campaign toward its goal (or goals). A campaign will have three conflicting objectives:

Conflicting Campaign Objectives

We have covered each in prior posts, a brief reminder:

  • Pacing: The rate at which a campaign is delivering impressions against the target impression count for the campaign. [Delivered impressions within timeframe / Expected impressions within timeframe]
  • Performance: Achievement against the advertisers campaign goal — i.e CPA.
  • Margin: % of revenue retained as profit for the company (Profit / Net Revenue)

To understand how these are determined, lets have a look…


As we saw, the DSP takes care of campaign needs of the Advertiser, and offers features to optimize the bidding process. Most bid optimization within a DSP focuses on generalized data which is available to all advertiser and often passed in via the exchange, however, many advertisers have more specific user level information about their target audience; they may have CRM systems to manage their existing customers, or have relationships with data specific data providers. While most DSPs accommodate basic segmentation of common third party data, they do not provide sophisticated audience management — for this we turn to another…

Moving from metrics back onto the technology of Programmatic advertising, we start with the Demand side platform (DSP). DSPs came about to enable advertisers to consolidate their online advertising spend to a single platform. Prior to DSPs advertiser had to negotiate separate purchasing agreements with various inventory sources. So the primary role of a DSP is to allow access to as much inventory of as many different forms and places as possible.

DSPs are complex platforms, but in general they contain the following core components:

Core components of a DSP

The bidder is the key component, but requires many supporting technologies. While the bidder evaluates…

So far we have discussed the basics of adverting and players involved, this particular post will dig right into the detail and review how we measure programmatic advertising. It may be a little more mundane than other posts in the series, but the information in this post should be understood by everyone before a real understanding of Ad Tech can be gained.

Note: This is a selection of the most common metrics, it is not complete and so there are a variety of other metrics you may come across. …

In our previous post we discussed the basics of supply and demand. Before we continue to discuss in more depth the technology behind these, we’ll take a moment to review the people on the demand side and the two key types of advertising: Brand and Direct Response.

Advertisers typically have two key goals:

Brand awareness — Making people aware of a brands existence and features. Depending on the industry, about 40% of online advertising is spent on Brand awareness campaigns.

Direct Response (DR) — Advertising a call to action in order to trigger a response from the user such as…


This series of posts will cover basics of Programmatic advertising. The topics will loosely fall into the following posts:

  • Supply vs Demand — An overview of programmatic concepts
  • Agency models — who and what are agencies, ad networks etc.
  • Metrics and reporting — what are the key measurements and why are they important?
  • DSPs — The demand side technology of AdTech.
  • SSPs & DMPs — Supply and Audience management
  • Optimization options — How audiences and inventory can be optimized to create an efficient bidding marketplace.
  • Creatives — Types of creatives and creative optimization

Supply and Demand

Most commercial success comes from mapping supply…

Glen Ames

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