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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Marketer defines their audience criteria in a bidding platform(eg females age 25-40 who make 100k per year, live in the northwest, expressed prior interest in purchasing Beauty products). These are the people in the internet they want to serve ads to. Marketer specifies the max amount they are willing to pay to serve this user an ad (eg. $3.25).
A user on the internet loads a page, there is an ad space available for this user.
The bidding platform sends out signal that this user is available to serve an ad. The bidding platform provides available data in the user. The signal goes out to all marketers on the bidding platform who have indicated they want to advertise to this type of user.
This user happens to fall into the category I described above, all marketers who are interested in this person automatically put in a bid via the bidding platform, the marketer bids go back and forth between interested parties until the max bid is reached (it could be more involved than just max bid in certain cases). Marketers who not interested in this user (marketers who are looking for males age 45+ who are automotive enthusiasts) never see this user and are not offered a bid.
Marketer who won the bid serves their organic face cream ad to the user.
All of the above happens in a fraction of a second.
This is why I find it funny when people are angry that a certain ad type was served to them on a particular site. The ads you are served have way more to do with you than the site you’re visiting LOL.
When you visit CNN.com, they don’t know what ads you’re seeing and they don’t control what ads you’re seeing. With a few exceptions of course (they probably prohibit pornographic ads from being served on their site, for example).
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