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Scaling campaigns: DSP vs Self Served Networks (6)

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I was wondering how do you scale your campaigns if you want to go for huge volume...

Do you use DSPs or networks that have their own inventory of traffic/publishers? Are these networks comparable in terms of volume with DSPs? I'm working with a few but their inventory is limited.

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DoubleClick and AppNexus are the big dogs.
You can access all DoubleClick via the AppNexus console which does make it easier, since you are working within one dashboard. But there is a fee to access DC via AppNexus.
I've not sat down and calculated the benefit of requesting a DC account and running the DC traffic directly, so I couldn't tell you what set up is preferable.
The toughest hurdle, personally, is transitioning from PPC to CPM. For example, if you run in AdWords and scale it to the point where you're buying everything you can. Then you want to start really scaling. The PPC algorithm Google has created has been a real crutch. It;s been giving you all the best solutions up until now.
Now, when you want to scale to "Oceans of traffic" you're going to re-calculate everything because there is no PPC algo helping you on these platforms. It's all CPM-based buying. So you'd better have been testing on smaller platforms (eg: SiteScout, AdWords, ...) to get your CPM numbers in alignment, before you sign any deal with DC or AppNexus.

There are medium solutions too, to scaling, such as Matomy, Fiksu that are agencies who have established relationships with them, and can get better prices. But, they will take a cut of course.
Or, you can, as you mentioned get a DSP, such as MediaMath, which requires a minimum spend of $30K/month.

Or, you can run your own ad-server and negotiate with all the large exchanges (MoPub, Smaato, InnerActive, etc.)- but you wouldn't do that without first having experience with the previous solutions.

Hope that helps.

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Thanks for mentioning all of these solutions. It helped a lot. Still got a few more questions...

Do they all have a graphical online interface to create campaigns and do the bidding? Or is it all done via their API and RTB?

I'm using Decisive and Sitescout at the moment. They all have inventory from Smaato, etc. Beside saving the extra fee is there any other advantage/disadvantage going directly on the large exchanges (do they have an interface for setting up things/all things done via api on your server, higher budgets required to enter, classifying your ads by yourself)

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Actually DoubleClick looks remarkably like AdWords, with the additional section where you can arrange direct deals with publishers. So when you want to ensure a placement, at a fixed, agreed-on cost you use that. I'm sure there are screenshots of the DBM (DoubleClick Bid Manager) online.
AppNexus looks like this

Cost. I have been told that SiteScout adds 50% to the cost. I don't know how accurate that figure is. But it goes without saying, when you cut out the middleman, you get better rates.

There are some options here, and as this space is constantly evolving there will be newer options that I don't know of. But let me give you an example:
MoPub will say you need a DSP:


So that means you either get your own ad-server, eg: http://www.djaxadserver.com/ (last quote I got was $9,200), or http://www.nginad.com/, or ... and maintain it and the server(s) (not to be underestimated).
Or, you get a managed software such as MediaMath. (Now, MediaMath also offer a managed buying solution, meaning their media buyers will manage the campaign for you. But, I would assume you'd want to manage the campaign yourself.) You can "rent" their hosted software, they fix any bugs, handle loads, and whatever sys-admin jobs are needed. They charge 17% for that.

I've noticed that recently, when companies say they offer a DSP, what they mean is that they are offering a managed media buying service, and that their software (a DSP) is what they use to do that. I'm referring to Fiksu and Matomy and several others. That's not what DSP originally meant. It was a software, plain and simple. But it seems definitions change/expand. So when you now go looking for an actual DSP, you should really search for "ad server".

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Wow this info is great, it really cleared up the technical details. I'm assuming the DSP way is better since you can control the bids and adjust them with some custom rules and maybe implement some IA. I already implemented a little system that I use on exported that and I can see the real potential with a DSP soft when I'll be ready for it.

One last question...in terms of volume, shouldn't it be the same for all DSPs(as in networks) since they all bid on the same exchanges? The only advantage of using one over another is just their "hidden" fee and their interface (ease of creating campaigns, auto-optimizing, bidding, etc.)?

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In theory, yes. But I suspect that those that buy the largest volumes collectively, get preferential treatment, better rates, etc.
I mean, if you have two customers, and one is buying $10,000 per second, and the other barely averages $5,000/month - who do you think will get the "algorithm" on their side. This whole bidding-system is all guided by software, but software is made/tweaked by humans - humans that earn a salary and depend on their boss being happy with them, and the boss depends on the client being happy...

There is another thread about AppNexus here if you're interested

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