IAB IAB Programmatic Advertising 2 — Questions and Answers
Question 1: What is a Programmatic Guaranteed (PG) deal?
- An open auction with a minimum CPM floor
- A guaranteed number of impressions at a fixed CPM negotiated directly between buyer and seller, executed programmatically (Correct answer)
- A type of deal where inventory is purchased after the campaign ends
- A fraud-free guarantee on all programmatic impressions
Correct answer: A guaranteed number of impressions at a fixed CPM negotiated directly between buyer and seller, executed programmatically
Programmatic Guaranteed is a deal type where a publisher and advertiser agree on a fixed price and guaranteed impression volume, then execute the transaction programmatically.
Question 2: What does 'header bidding' mean?
- Placing the advertiser's logo at the top of a webpage
- A technique allowing publishers to offer inventory to multiple ad exchanges simultaneously before calling their ad server (Correct answer)
- A bidding strategy that prioritizes ads shown above the fold
- A process of bidding on premium header placements on news sites
Correct answer: A technique allowing publishers to offer inventory to multiple ad exchanges simultaneously before calling their ad server
Header bidding is an advanced programmatic technique where publishers offer their inventory to multiple SSPs/exchanges simultaneously, increasing competition and yield.
Question 3: What is the IAB's OpenRTB specification?
- A certification program for programmatic traders
- A standardized API specification that facilitates communication between DSPs and SSPs in real-time auctions (Correct answer)
- A reporting format for programmatic campaign results
- A viewability standard for programmatic display ads
Correct answer: A standardized API specification that facilitates communication between DSPs and SSPs in real-time auctions
OpenRTB is an IAB Tech Lab API specification that standardizes the communication protocol for real-time bidding between buyers and sellers.
Question 4: What is a bid request in programmatic advertising?
- A formal request for proposal sent to an agency
- A signal sent from an SSP to DSPs with details about an impression opportunity (Correct answer)
- A report advertisers send to publishers about campaign goals
- A notification that an ad was not served due to budget caps
Correct answer: A signal sent from an SSP to DSPs with details about an impression opportunity
A bid request is sent by an SSP to multiple DSPs containing details about an available impression, including user data and page context, so DSPs can decide whether and how much to bid.
Question 5: What is a Data Management Platform (DMP) used for in programmatic advertising?
- Managing the technical infrastructure of ad servers
- Collecting, organizing, and activating audience data to improve ad targeting (Correct answer)
- Tracking viewability metrics for display campaigns
- Managing billing and payment between buyers and sellers
Correct answer: Collecting, organizing, and activating audience data to improve ad targeting
A DMP collects first-, second-, and third-party data, organizes it into audience segments, and activates it across DSPs and other platforms for improved targeting.
Question 6: In a second-price auction (Vickrey auction), what does the winner pay?
- Their exact bid price
- The average of all bids submitted
- One cent more than the second-highest bid (Correct answer)
- A fixed CPM floor set by the publisher
Correct answer: One cent more than the second-highest bid
In a second-price auction, the winning bidder pays $0.01 (one cent) above the second-highest bid, not their actual bid amount.
IAB IAB Programmatic Advertising 2
What is a Programmatic Guaranteed (PG) deal?