Eli5: how the fuck does programmatic buying work

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The way ads are served, how networks like Facebook and Google get involved, how the “auction” between networks takes place – someone explain it to me plz

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When it comes to online advertising, there are a few different ways that ads are served. The most common way is through a real-time bidding (RTB) process. This is a process in which advertisers bid in an auction-style format to have their ad shown on a website or app. When a user visits a website or app, the publisher’s ad server sends a request to the ad exchange, which is a marketplace for buying and selling ads. This request contains information about the user and the publisher’s desired ad format, such as banner ad, video ad, etc. The ad exchange then sends the request to the demand-side platform (DSP), which is a platform used by advertisers to purchase ads. The DSP then sends the request to the ad networks, such as Google and Facebook, which have pools of advertisers. The networks then submit bids for the ad space, and the highest bidder wins the auction. The winning bidder’s ad is then served to the user, and the advertiser pays the publisher for the ad space. The entire process usually takes place in a matter of milliseconds.

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