Ad Tech Primer
Token-efficient reference for digital advertising fundamentals. Designed for AI agents that need to understand ad tech concepts quickly.The Ad Tech Stack
ADVERTISER (wants to reach audiences)
│
▼
┌─────────────────┐
│ DSP │ Demand-Side Platform: Buys ad inventory
│ (The Trade Desk,│ on behalf of advertisers
│ DV360, Amazon) │
└────────┬────────┘
│ Bid requests/responses (OpenRTB)
▼
┌─────────────────┐
│ AD EXCHANGE │ Marketplace: Matches buyers and sellers
│ (Google AdX, │ via real-time auctions
│ Index Exchange)│
└────────┬────────┘
│ Bid requests/responses
▼
┌─────────────────┐
│ SSP │ Supply-Side Platform: Sells inventory
│ (Google, Magnite│ on behalf of publishers
│ PubMatic) │
└────────┬────────┘
│
▼
PUBLISHER (has audience attention to monetize)
Key Concepts
Pricing Models
| Model | Full Name | Definition | Common Use |
|---|---|---|---|
| CPM | Cost Per Mille | Price per 1,000 impressions | Display, video |
| CPC | Cost Per Click | Price per click | Performance campaigns |
| CPA | Cost Per Action | Price per conversion | Lead gen, e-commerce |
| CPV | Cost Per View | Price per video view | Video (50% view) |
| CPCV | Cost Per Completed View | Price per 100% completion | Video (full view) |
| CPP | Cost Per Point | Price per GRP point | TV, audio |
| Flat Rate | Fixed Price | Single payment for placement | Sponsorships |
Inventory Types
| Type | Description | Examples |
|---|---|---|
| Display | Banner ads on web/app | 300x250, 728x90, 320x50 |
| Video | In-stream or out-stream video | Pre-roll, mid-roll, CTV |
| Audio | Audio ads in streaming | Podcasts, Spotify, radio |
| Native | Ads matching site content | In-feed, content rec |
| DOOH | Digital out-of-home | Billboards, transit, retail |
| CTV | Connected TV | Streaming apps on smart TVs |
Targeting Dimensions
| Dimension | Description |
|---|---|
| Demographic | Age, gender, income, education |
| Geographic | Country, region, city, zip, radius |
| Behavioral | Past actions, purchase intent, interests |
| Contextual | Page content, keywords, topics |
| Temporal | Time of day, day of week, seasonality |
| Device | Mobile, desktop, tablet, CTV |
| First-party | Advertiser’s own audience data |
| Third-party | Licensed audience segments |
Programmatic vs Direct
| Aspect | Programmatic (RTB) | Direct/Agentic |
|---|---|---|
| Transaction | Real-time auction | Negotiated/relationship |
| Latency | 100ms bid window | Hours to days |
| Pricing | Dynamic auction | Fixed/negotiated |
| Relationship | Anonymous | Direct publisher |
| Data sharing | Minimal context | Rich context |
| Efficiency | High volume | High value |
Key Players
Demand Side (Buyers)
| Company | Type | Notes |
|---|---|---|
| The Trade Desk (TTD) | Independent DSP | Largest independent |
| Google DV360 | DSP | Google ecosystem |
| Amazon DSP | DSP | Amazon + retail data |
| Meta | Walled garden | Facebook/Instagram |
Supply Side (Sellers)
| Company | Type | Notes |
|---|---|---|
| Google Ad Manager | SSP + Ad Server | Dominant publisher tool |
| Magnite | SSP | CTV focus |
| PubMatic | SSP | Programmatic focus |
| FreeWheel | Video SSP | TV/premium video |
Data/Identity
| Company | Type | Notes |
|---|---|---|
| LiveRamp | Identity resolution | Cross-device graphs |
| The Trade Desk UID2 | Identity | Open-source ID |
| Experian | Data provider | Consumer data |
| Oracle Data Cloud | Data provider | Audience segments |
Measurement Terms
| Term | Definition |
|---|---|
| Impression | One ad served |
| Reach | Unique users who saw ad |
| Frequency | Average views per user |
| Viewability | % ads actually seen (IAB: 50% pixels, 1+ sec) |
| Completion Rate | % video ads watched to end |
| CTR | Click-through rate (clicks/impressions) |
| VCR | Video completion rate |
| GRP | Gross Rating Point (1% of target audience) |
How AdCP Differs
| Programmatic (RTB) | AdCP (Agentic) |
|---|---|
| Bid on every impression | Negotiate packages |
| Cookie-based targeting | Context + first-party |
| 100ms decisions | Human-in-the-loop approval |
| Auction determines price | Inclusive pricing |
| Anonymous transactions | Publisher relationships |
| High infrastructure cost | Reduced server load |
Common Acronyms
| Acronym | Meaning |
|---|---|
| DSP | Demand-Side Platform |
| SSP | Supply-Side Platform |
| DMP | Data Management Platform |
| CDP | Customer Data Platform |
| CTV | Connected TV |
| OTT | Over-the-Top (streaming) |
| DOOH | Digital Out-of-Home |
| RTB | Real-Time Bidding |
| PMP | Private Marketplace |
| IO | Insertion Order |
This is a placeholder document. Content will be enhanced with more detail in future updates.