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Programmatic Advertising Explained

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Programmatic Advertising

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Automated buying and selling of online advertising, providing efficiency and targeted audiences.

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Real-Time Bidding (RTB)

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Auction-based approach to buying and selling ad impressions in real-time, increasing cost-effectiveness.

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Demand-Side Platform (DSP)

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A system that allows advertisers to manage multiple ad exchange accounts through a single interface.

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Supply-Side Platform (SSP)

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A platform for publishers to manage and sell ad space to advertisers programmatically.

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Ad Exchange

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A digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions.

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Data Management Platform (DMP)

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A tool used to collect, organize and activate large sets of data from various sources for targeted advertising.

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Programmatic Direct

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A method of programmatic buying where advertisers buy guaranteed ad impressions from publishers directly.

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Private Marketplace (PMP)

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An invitation-only RTB auction where high calibre publishers offer their ad inventory to select advertisers.

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First-Price Auction

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An auction model where the highest bid wins the ad impression, and the winner pays the price they bid.

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Second-Price Auction

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An auction model where the highest bid wins, but the winner pays one cent more than the second-highest bid.

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Header Bidding

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An advanced programmatic bidding process where multiple ad exchanges can bid on the same inventory simultaneously.

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Ad Impression

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A measure of the number of times an ad has been viewed, which helps determine the cost of advertising.

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Click-Through Rate (CTR)

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The percentage of people who click on an ad out of the total number of viewers, a key metric for ad success.

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Ad Retargeting

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A process of serving ads to users based on their previous online behavior, increasing the likelihood of conversion.

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Frequency Capping

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A feature that limits the number of times an ad is shown to the same user, preventing overexposure.

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Viewability

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The measure of whether an ad had the opportunity to be seen by a user, a factor in pricing and effectiveness.

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Ad Fraud

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The deliberate practice of serving ads that have no potential to be viewed by a human user, affecting the integrity of advertising data.

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Programmatic TV

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Buying and selling TV advertising space programmatically to target specific audiences with more precision.

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Cost Per Thousand Impressions (CPM)

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A pricing model in advertising where advertisers pay for every thousand impressions of their ad.

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Cost Per Click (CPC)

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An online advertising revenue model where advertisers pay a fee each time one of their ads is clicked.

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