What is the Meaning of Supply and Demand in Ad Tech

Digital advertising online works much in the same way that buyers and sellers work in real world situations. The difference is that it is all programmatic, or, in simpler words, algorithm based. The online advertising world has two distinct sides. One is the supply side and the other is the demand side.

Supply side

Publishers make up the supply side. Publishers may comprise of individual small website owners, large web portals or owners of a group of websites on which they offer virtual real estate that can be used by advertisers or ad agencies to display their ads. This space is known as their inventory. Naturally, the publishers’ focus is on profitability towards maximizing revenue per each space and to keeping such spaces always filled with ads. Just like a real estate owner cannot afford to let properties lie vacant and must find a tenant so is the case with supply side in programmatic advertising.

If an operator owns dozens or hundreds of websites where he can farm out space, then it makes sense to have in-house platform to manage real time buying. The role of the intermediary and the software goes beyond just matching demand to supply but first, a little about the demand side.

Demand side

Advertisers and Ad Agencies that are looking to get their ads placed on websites are known as the demand side. Their focus is to place their Ads on sites (or in mobile apps) that will generate maximum views and click leading to conversions. Naturally, advertisers will want maximum returns on money spent on ads and the lowest rate whether it is based on CPM or other models. Here again, an intermediary like Kritter will be of invaluable assistance in a variety of ways.

An agency works best for supply and demand side

Not all publishers can afford to or need ad tech software. The same is the case with advertisers. However, without the platform it is impossible for them to get optimal benefits. This is where Kritter’s programmatic ad platform comes to the aid of millions of publishers and advertisers through its automatic intelligent platform managed by experts in ad-tech.

Advertisers can find the right targets in the right location and target ads at the right time. Such campaigns are based on data gathered about traffic type and source to publisher sites, interaction, demographics and device specs. Publishers can use such services to optimize their revenues and demand side advertisers can use the services to optimize ad spends.

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