<\/span><\/h2>\nProgrammatic Advertising<\/b> is an automatic process of buying and selling ad spaces on the internet, including desktop, mobile websites, and mobile applications. The process is based on a bidding system to decide which adverts from whom will get to serve on the ad spaces (ad inventory).<\/span><\/p>\n<\/h2>\n
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<\/span>Programmatic Ads Terms<\/span><\/span><\/h2>\n<\/span>Ad Inventory\/Ad Space<\/b><\/span><\/h4>\nWeb designers usually leave some space for adverts to display when designing a website or an application to monetize it. Ad inventory or ad spaces, sold or rented to advertisers to have ad content delivered and reach their targeted viewers.<\/span><\/p>\n <\/p>\n
<\/span>Ad Unit<\/b><\/span><\/h4>\nIn an ad space, there are usually many ad units according to each different price set by the publisher\/agency.\u00a0 Each ad unit also serves a specific range of ad types and ad sizes. An ad unit contains the ad code used to call ads from the ad server and serve it to users.<\/span><\/p>\n <\/p>\n
<\/span>Ad Exchange<\/b><\/span><\/h4>\nAn ad exchange is a digital marketplace that includes three main subjects: the buyer – seller, and a real-time bidding system. On an ad exchange, the seller can set the floor price, see clearly how their inventory is being sold and the buyer can distribute their content to their desired inventory. All operation processes are automatic and programmatic on an ad exchange.<\/span><\/p>\n\u00a0<\/span><\/p>\n<\/span>Ad Network<\/b><\/span><\/h4>\nAn ad network offers its network and technology to its clients. Advertisers and publishers are connected through this intermediary to buy and sell ad impressions. The platform matches the aggregated inventory with advertisers\u2019 requests and targets.<\/span><\/p>\n <\/p>\n
<\/span>Ad Mediation<\/b><\/span><\/h4>\nAd mediation uses of technology to maximize the ad monetization of publishers by increasing their fill rates and eCPM rates. To do so, ad mediation platforms provide publishers with access to multiple ad networks. Correspondingly, advertisers from various networks then bid for the available inventory and the meditation platform selects the one that provides the highest ROI.<\/span><\/p>\n <\/p>\n
<\/span>Ad Server<\/b><\/span><\/h4>\nAn ad server stores display ads, serving the ad creative to the ad unit after the ad request is made. There are two types of ad servers:<\/span><\/p>\n\n- First-party ad server: used by publishers to decide on which ads to show to the target audience and collect, store, and report data.<\/span><\/li>\n
- Third-party ad server: used by advertisers to manage their campaigns, identify, and collect data from the platforms they use.<\/span><\/li>\n<\/ul>\n
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<\/span>Ad Impressions<\/b><\/span><\/h4>\nAd impressions count the number of times a web page visitor\/ app user views an ad.\u00a0<\/span><\/p>\n <\/p>\n
<\/span>Ad Tags<\/b><\/span><\/h4>\nAn ad tag is a piece of code (HTML or JavaScript) that is placed on the publisher’s website to display ads. These tags contain the details of the size, format, and other requirements of the ad unit.<\/span><\/p>\n\n- Publishers place an ad tag to make their inventory available for sale.<\/span><\/li>\n
- Advertisers use these ad tags to send creatives for available impressions.<\/span><\/li>\n<\/ul>\n
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<\/span>Demand Side Platform<\/b><\/span><\/h4>\nDSP is a platform that aggregates a bulk of advertisers, purchasing ad impressions on their behalf. A DSP programmatically optimizes advertisers\u2019 campaigns on multiple ad networks and ad exchanges while saving their budget.<\/span><\/p>\n <\/p>\n
<\/span>Supply Side Platform<\/b><\/span><\/h4>\nSSP allows publishers to manage all their available ad inventory on other ad networks and ad exchanges within one platform. SSP brings publishers higher revenue and helps them fill their inventory.<\/span><\/p>\n <\/p>\n
<\/span>CPM and eCPM<\/b><\/span><\/h4>\nCPM<\/strong> stands for cost-per-thousand impressions, or \u201cCost Per Mille\u201d. It\u2019s a fixed price advertisers bid or pay for each 1000 ad impressions.<\/span><\/p>\nCPM = (Total cost of ad campaign \/ Number of ad impressions) x 1000<\/span><\/i><\/p>\n <\/p>\n
eCPM<\/strong> stands for effective cost-per-thousand impressions, or \u201ceffective Cost Per Mille\u201d. eCPM shows how much ad revenue the publisher has generated on average from 1000 ad impressions.\u00a0<\/span><\/p>\neCPM = (Total ad revenue \/ Total ad impressions) x 1000<\/span><\/i><\/p>\n <\/p>\n
<\/span>Fill-rate<\/b><\/span><\/h4>\nFill rate is the percentage number of ads served divided by the total number of ad requests that the server makes.<\/span><\/p>\n <\/p>\n
<\/span>Ad Ops<\/b><\/span><\/h4>\nAd optimization means using data to create and make subsequent changes to a digital ad campaign to improve performance.<\/span><\/p>\n <\/p>\n
<\/span>Publishers<\/b><\/span><\/h4>\nPublishers are the owners of ad space (ad inventory) on desktop websites, mobile sites, and mobile applications.<\/span><\/p>\n <\/p>\n
<\/span>Advertisers<\/b><\/span><\/h4>\nAdvertisers purchase ad spaces from Publishers to deliver their message to the targeted audience group (to promote or market their brands or products).<\/span><\/p>\n <\/p>\n
<\/span>Net<\/b><\/span><\/h4>\nNet is the number of days that the publisher will receive their payments after they get their revenue report. Net terms may vary, some common terms would be Net 5, 15, and 30,; less common is Net 0 and 90.\u00a0<\/span><\/p>\nFor example, if a publisher gets their report on revenue on November 1, Net 30 means they will receive the payments on December 1.<\/span><\/p>\n <\/p>\n
<\/span>Revenue Share<\/b><\/span><\/h4>\nWhen a publisher works with an ad network, revenue share is a working method that both parties will share their revenue in a negotiated percentage. Normally, the revenue share ratio will be 60-40, 70-30, 80-20, 85-15, and 90-10 with the larger portion going to the publishers.<\/span><\/p>\n <\/p>\n
<\/span>Passback<\/b><\/span><\/h4>\nPassback is a model <\/span>in programmatic advertising that when a primary DSP\/ad network cannot buy all the ad impressions they asked to buy from publishers since the bidding price does not meet the set price, the remnant impressions won\u2019t go to waste as the DSP\/ad network will pass them back to other buyers. This model allows publishers to monetize every impression, and greatly reduces the chance of serving blank ads.<\/span><\/p>\n <\/p>\n
<\/span>Data Management Platform<\/b><\/span><\/h4>\nA DMP serves as a data storage, management, and analysis platform for digital advertising campaigns. DMPs use third-party cookies to collect user data and build customer profiles, then categorize them into groups, the ad server will use that data to serve and distribute the ads to viewers who match with the ad campaign targets.<\/span><\/p>\n <\/p>\n
<\/span>Real-time bidding<\/b><\/span><\/h4>\nRTB i<\/span>s the real-time process of buying and selling an ad inventory on a per-impression or view via instantaneous programmatic auction.<\/span><\/p>\n <\/p>\n