![]() Several industry studies have tried to explore this issue previously. The amount that DSPs and SSPs charge to advertisers and publishers is not totally transparent. In addition, the media buyer may elect to pay fees for audience data, brand safety, or measurement. It then pays a fee to the DSP, which takes a fee from the SSP or ad exchange, which in turn takes a fee from the publisher (in the form of a revenue share). Generalizing for the sake of simplicity, if a media buyer bids more than other advertisers bid for that ad slot, it will win the ad auction (similar to how art auctions are run by Sotheby's and Christie's). Media buyers who work on behalf of agencies or brands place bids to try to win the opportunity to render their ad on the consumer’s computer, phone, or connected TV. When a reader visits a website, the website will communicate with several Supply-side platforms (SSPs) that aggregate ad inventory from many different publishers, ranging from tiny blogs to 100+ year old national papers-of-record.These SSPs will present information about the ad auction to a number of Demand-side platform (DSPs), which are used by media agencies or brands to bid and purchase ads across large swathes of inventory. In a present-day, 1st price ad auction, there is a sequence of events that take place.
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