IAB Programmatic Advertising Flashcards

What is a Programmatic Guaranteed (PG) deal?

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.

What does 'header bidding' mean?

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.

What is the IAB's OpenRTB specification?

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.

What is a bid request in programmatic advertising?

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.

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

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.

In a second-price auction (Vickrey auction), what does the winner pay?

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.