What is Ad Selection?
Ad Selection is the automated process by which the most appropriate ad is chosen to be displayed in an available advertising space (Adzone). This system evaluates multiple potential sources of ads—such as direct deals, programmatic campaigns, and real-time bidding (RTB)—to determine the best-performing and most profitable option for each ad request.
Why is Ad Selection Important?
The goal of Ad Selection is to maximize revenue for publishers while maintaining relevance and performance for advertisers. It ensures that every impression opportunity is monetized in the most effective way possible, using a hierarchical decision logic that considers both static and dynamic campaign sources.
How Ad Selection Works?
The selection process follows a prioritized flow:
A. Direct Deals
- Highest priority in the selection process.
- If a valid Direct Deal is found (i.e., a confirmed agreement with a specific advertiser), it is selected as the final ad.
- No further selection steps are executed once a Direct Deal is matched.
B. Smartzone Selection
- If no Direct Deal is available, the system checks for a connected Smartzone.
- A Smartzone dynamically calculates a predicted eCPM (effective cost per mille) or eCPC (effective cost per click) based on performance data.
- This value serves as a benchmark for evaluating other campaign types.
C. Run of Network (RON) Campaigns
- If an Adzone has whitelisted (WL) campaigns connected, the system will evaluate those campaigns. However, only CPM campaigns with a bid equal to or higher than the Smartzone’s eCPM will be eligible for selection.
D. Real-Time Bidding (RTB)
- If RTB (Real-Time Bidding) is enabled, the system will send a bid request using a bidfloor.
- This bidfloor is based on the eCPM of the selected ad or the Smartzone, whichever is available. plus +10% margin to encourage competitive bidding.
- This ensures that bids coming through RTB are competitive and aligned with Smartzone expectations.
Note: Both RON and RTB can be disabled in the Adzone settings when Smartzones are connected, allowing full control over how ads are selected.