Display Advertising Programmatic Display Advertising 2

Question 1

What is an 'ad exchange' in the programmatic ecosystem?

Accepted Answer

A digital marketplace where publishers and advertisers buy and sell ad impressions in real time

Answer

An ad exchange is a technology platform that facilitates the open buying and selling of digital advertising space through real-time auctions, connecting SSPs on the publisher side with DSPs on the advertiser side.

Question 2

What is a 'floor price' in programmatic advertising?

Accepted Answer

The minimum CPM price a publisher will accept for an ad impression

Answer

A floor price is set by the publisher and represents the minimum CPM they are willing to accept for an impression; any bids below this price are rejected from the auction.

Question 3

What is 'header bidding' in programmatic display?

Accepted Answer

A technique that lets multiple ad exchanges bid simultaneously for an impression before the ad server makes a final decision

Answer

Header bidding (also called pre-bidding) is a programmatic technique where a publisher offers ad inventory to multiple demand sources simultaneously, increasing competition and publisher revenue.

Question 4

What is a Data Management Platform (DMP) used for in programmatic advertising?

Accepted Answer

Collecting, organizing, and activating first, second, and third-party audience data for targeting

Answer

A DMP aggregates audience data from multiple sources, segments it into targetable audiences, and makes it available to DSPs and ad servers to enable data-driven targeting in programmatic campaigns.

Question 5

What does 'second-price auction' mean in RTB?

Accepted Answer

The winner pays $0.01 more than the second-highest bid, not their own maximum bid

Answer

In a second-price (Vickrey) auction, the winning bidder pays one cent above the second-highest bid rather than their own maximum bid, which encourages truthful bidding.

Display Advertising Practice Test

Display Advertising Practice Test

Display Advertising Programmatic Display Advertising 2