Do you know the difference between an ad exchange and an ad network? What does DSP stand for? What is the buy-side and sell-side?

It's important for brand marketers to understand the basics of display advertising beyond messaging and creative.

Why? Because it's clear that digital is becoming an increasingly important portion of marketing budgets.

Worldwide digital ad spend passed the $100-billion mark last year and is estimated to increase by another 15% in 2013. This means that digital will comprise a quarter of total ad spend across all forms of media.

Display is a big part of that, accounting for an estimated 40% of global internet advertising. It's a $48 billion dollar market.

Meanwhile, most other advertising media are declining in spend share, including radio, outdoor, and print. Translation? It's worthwhile to understand the basics of display advertising because your marketing dollars are going in that direction.

The display advertising landscape is complex, but this 3-minute video created by IAB UK is a good place to start. It defines common terms to know, such as:

  • Publisher
  • Advertiser/ Agency
  • Ad exchange
  • Ad network
  • Demand side platform (DSP)
  • Agency Trading Desk (ATD)
  • Buy-side
  • Sell-side
  • Sell-side platform (SSP)

You'll see how display advertising evolved from this....

 ...to this.