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Programmatic Advertising Explained
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Programmatic Advertising
Automated buying and selling of online advertising, providing efficiency and targeted audiences.
Data Management Platform (DMP)
A tool used to collect, organize and activate large sets of data from various sources for targeted advertising.
Supply-Side Platform (SSP)
A platform for publishers to manage and sell ad space to advertisers programmatically.
Private Marketplace (PMP)
An invitation-only RTB auction where high calibre publishers offer their ad inventory to select advertisers.
Ad Impression
A measure of the number of times an ad has been viewed, which helps determine the cost of advertising.
Click-Through Rate (CTR)
The percentage of people who click on an ad out of the total number of viewers, a key metric for ad success.
Demand-Side Platform (DSP)
A system that allows advertisers to manage multiple ad exchange accounts through a single interface.
Programmatic Direct
A method of programmatic buying where advertisers buy guaranteed ad impressions from publishers directly.
Frequency Capping
A feature that limits the number of times an ad is shown to the same user, preventing overexposure.
Real-Time Bidding (RTB)
Auction-based approach to buying and selling ad impressions in real-time, increasing cost-effectiveness.
Ad Exchange
A digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions.
First-Price Auction
An auction model where the highest bid wins the ad impression, and the winner pays the price they bid.
Ad Retargeting
A process of serving ads to users based on their previous online behavior, increasing the likelihood of conversion.
Header Bidding
An advanced programmatic bidding process where multiple ad exchanges can bid on the same inventory simultaneously.
Viewability
The measure of whether an ad had the opportunity to be seen by a user, a factor in pricing and effectiveness.
Cost Per Thousand Impressions (CPM)
A pricing model in advertising where advertisers pay for every thousand impressions of their ad.
Programmatic TV
Buying and selling TV advertising space programmatically to target specific audiences with more precision.
Second-Price Auction
An auction model where the highest bid wins, but the winner pays one cent more than the second-highest bid.
Ad Fraud
The deliberate practice of serving ads that have no potential to be viewed by a human user, affecting the integrity of advertising data.
Cost Per Click (CPC)
An online advertising revenue model where advertisers pay a fee each time one of their ads is clicked.
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