The agency trading desk is an independent arm within a media buying company that work on the buying and optimization of "programmatic" or "biddable" media. Examples include Accuen (ATD for Omnicom), Xaxis (WPP), Audience on Demand (Vivaki). The brands like Accuen, Xasis and Vivaki has become synonym to agency trading desk.
The advertisers started coming to ATD's because ad networks historically took a 50% gross margin. ATD's provide deals to advertisers at much reduced rate. Since more and more advertisers wanted their online media buying to be done via ATD's so ATDs are major growth engines for agencies, who have seen their media buying margins reduced substantially over the past 20 years. By establishing ATDs as independent units that take a service fee, the agency can "double-dip" on the portion of the fees that runs through the ATD. i.e. The media agency takes their fee, then the ATD takes another fee for managing the spend.
So as we know that the Media planners decide the budget which is to be spend across various offline and online platforms. The job of an ATD starts once the media planner decides and allocates the budget to them. ATD's have contacts with various publishers, Ad exchanges, SSP's etc where to go and purchase the inventory from. In earlier days the ATD's use to provide their tags to ad network and publishers. And when users comes on the publishers website, the ad use to be shown as per the setting being down on the publishers ad server.The impressions are being counted on both the ends. And the billing is being done on the basis of the deal.
Agency Trading Desks (ATDs) also keeps on changing their buying caliber in order to stay competitive.Agencies historically spent tons of media dollars with ad networks, who aggregated online display inventory through direct relationships with publishers. With the arrival of the ad exchanges & associated, agencies realized they could purchase most/all of this media directly through the ad exchanges. But now with the rise of media buying technologies like Real Time Biding (RTB),Private Marketplace (PMP),Programmatic Direct,Automated Guaranteed etc. The ATD'S mainly buy inventory using RTB. Real-time bidding (RTB) is a means by which advertising inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction, similar to financial markets.With real-time bidding, advertising buyers bid on an impression and, if the bid is won, the buyer’s ad is instantly displayed on the publisher’s site.
The companies having real-time bidding capabilities are know as DSPs (demand side platforms). ATD use their platform for their buying activities. DSPs (demand side platforms) are the technology platforms used to manage and optimize these buys. They come in all shapes and sizes, but generally combine reporting and campaign management with media buying and optimization. DSPs typically operate "real time bidders" that make decisions in real-time about what media to purchase, at what price, and which creative to show the user. DSPs are operated by Google (Doubleclick), Turn, Mediaocean, Mediamath, and there are lots of other alternatives.
The advertisers started coming to ATD's because ad networks historically took a 50% gross margin. ATD's provide deals to advertisers at much reduced rate. Since more and more advertisers wanted their online media buying to be done via ATD's so ATDs are major growth engines for agencies, who have seen their media buying margins reduced substantially over the past 20 years. By establishing ATDs as independent units that take a service fee, the agency can "double-dip" on the portion of the fees that runs through the ATD. i.e. The media agency takes their fee, then the ATD takes another fee for managing the spend.
So as we know that the Media planners decide the budget which is to be spend across various offline and online platforms. The job of an ATD starts once the media planner decides and allocates the budget to them. ATD's have contacts with various publishers, Ad exchanges, SSP's etc where to go and purchase the inventory from. In earlier days the ATD's use to provide their tags to ad network and publishers. And when users comes on the publishers website, the ad use to be shown as per the setting being down on the publishers ad server.The impressions are being counted on both the ends. And the billing is being done on the basis of the deal.
Agency Trading Desks (ATDs) also keeps on changing their buying caliber in order to stay competitive.Agencies historically spent tons of media dollars with ad networks, who aggregated online display inventory through direct relationships with publishers. With the arrival of the ad exchanges & associated, agencies realized they could purchase most/all of this media directly through the ad exchanges. But now with the rise of media buying technologies like Real Time Biding (RTB),Private Marketplace (PMP),Programmatic Direct,Automated Guaranteed etc. The ATD'S mainly buy inventory using RTB. Real-time bidding (RTB) is a means by which advertising inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction, similar to financial markets.With real-time bidding, advertising buyers bid on an impression and, if the bid is won, the buyer’s ad is instantly displayed on the publisher’s site.
The companies having real-time bidding capabilities are know as DSPs (demand side platforms). ATD use their platform for their buying activities. DSPs (demand side platforms) are the technology platforms used to manage and optimize these buys. They come in all shapes and sizes, but generally combine reporting and campaign management with media buying and optimization. DSPs typically operate "real time bidders" that make decisions in real-time about what media to purchase, at what price, and which creative to show the user. DSPs are operated by Google (Doubleclick), Turn, Mediaocean, Mediamath, and there are lots of other alternatives.
